Abstract
In this paper we contribute to the ongoing – and still inconclusive – debate on management responses to digital technology adoption. We argue that firm sector and firm functions are sources of variance in management responses. We show, theoretically and empirically, that digital technology adoption is positively associated to divergence in management attention of managers belonging to different organizational functions within a given organization. We also show that, overall, digital technology adoption is positively associated to convergence in management attention of managers from different organizations. We test our hypotheses in the context of the US financial sector (934 banks and 221 insurers, from 2006 to 2018) and we find strong support for our predictions.
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