Is managerial ability a catalyst for driving digital transformation in enterprises? An empirical analysis from internal and external pressure perspectives.

Abstract

In a dynamic and competitive business environment, managerial ability emerges as a pivotal strategic factor for capitalizing on new opportunities within the technological revolution and digital transformation of enterprises. Based on data from Chinese A-share listed firms spanning from 2009 to 2019, this study integrates insights from the upper echelons theory and the behavioral theory of the firm to investigate the moderating roles of historical aspiration shortfalls and industrial competitiveness on the relationship between managerial ability and enterprise digital transformation from internal and external pressure perspectives. Our findings indicate a positive impact of managerial ability on digital transformation. The relationship between managerial ability and digital transformation is reinforced by historical aspiration shortfalls; nevertheless, industrial competitiveness has attenuated the aforementioned relationship. This study contributes to a better understanding of the strategic implications of managerial ability within the context of organizational innovation strategies. It offers valuable insights into the decision-making processes of firms as they navigate the challenges of digital transformation within an ever-evolving business environment.