Unraveling the performance puzzle of digital transformation: The moderating role of TMT heterogeneity and faultline strength

IF 10.5 1区管理学 Q1 BUSINESS

Journal of Business Research Pub Date : 2024-11-23 DOI:10.1016/j.jbusres.2024.115076

Kui Wang , Junjia He , Xiaodan Zhang , Diandian Xiang , Ping Zhang

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引用次数: 0

Abstract

Despite the proven advantages of cutting costs and boosting efficiency through digital transformation (DT), the empirical findings about the relationship between DT and financial performance remain ambiguous. This study attempts to reveal boundary conditions under which DT influences firm performance by examining how two top management team (TMT) characteristics—TMT heterogeneity and TMT faultline strength—moderate this relationship. Using panel data from A-share listed companies in China, the results reveal that DT positively impacts financial performance. However, TMT heterogeneity and TMT faultline strength have negative moderating effects on the relationship between DT and firm performance. Moreover, when heterogeneity creates strong faultline within the TMT, it strengthens the weakening role of heterogeneity on the effectiveness of DT implementation. These findings contribute to existing literature on DT implementation by exploring the role of TMT characteristics and provide valuable insights for managers and policymakers seeking to leverage digital transformation strategically.

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来源期刊

Journal of Business Research BUSINESS-

CiteScore

20.30

自引率

10.60%

发文量

956

期刊介绍： The Journal of Business Research aims to publish research that is rigorous, relevant, and potentially impactful. It examines a wide variety of business decision contexts, processes, and activities, developing insights that are meaningful for theory, practice, and/or society at large. The research is intended to generate meaningful debates in academia and practice, that are thought provoking and have the potential to make a difference to conceptual thinking and/or practice. The Journal is published for a broad range of stakeholders, including scholars, researchers, executives, and policy makers. It aids the application of its research to practical situations and theoretical findings to the reality of the business world as well as to society. The Journal is abstracted and indexed in several databases, including Social Sciences Citation Index, ANBAR, Current Contents, Management Contents, Management Literature in Brief, PsycINFO, Information Service, RePEc, Academic Journal Guide, ABI/Inform, INSPEC, etc.