The effects of executives’ overseas background on enterprise digital transformation: evidence from China

Abstract

PurposeThe purpose of this study is to examine the effects of executives’ overseas education and work experience on enterprise digital as executives’ overseas background is critical to the development of enterprises. It also explored the mediating role of enterprise digital transformation on the relationship between executives’ overseas background and enterprise growth.Design/methodology/approachChinese A-share companies listed on the Shanghai and Shenzhen Stock Exchanges for the period 2018–2020 were analyzed using regression analysis and bootstrapping to verify hypothesized relationships.FindingsExecutives’ overseas study and work experience both enhanced enterprise digital transformation significantly, thus improving enterprise growth. The level of employee education moderated the mediating role proposed in the theoretical model. Moreover, the promoting effect of executives’ overseas background on enterprise digital transformation was more significant for non-state-owned enterprises and those in eastern China.Practical implicationsThe findings provide reference for the formulation and optimization of companies’ human resource structure and have implications on the improvement of enterprise digital transformation and enterprise growth.Originality/valueThis study explored the factors influencing enterprise digital transformation at the microlevel of corporate human capital, thereby providing microlevel empirical evidence for research on the factors influencing enterprise digital transformation. Its findings shed light on the mechanism and context under which executives with overseas backgrounds may enhance enterprise digital transformation and growth.