Does CEO IT knowledge matter for SME value? The mediating role of digital technologies

Purpose This study aims to examine the role of chief executive officer (CEO) information technology (IT) knowledge (KW) in the adoption of digital technology by Chinese small and medium-sized enterprises (SMEs). This study further elaborates the mediating role of digital technologies in the value of SMEs. Design/methodology/approach This study uses a survey method to collect data from CEOs of Chinese SMEs; 143 responses were collected from six different sectors. The study employs structural equation modeling (SEM) and finds that CEO IT knowledge positively influences digital technology adoption. Findings The results show that CEO IT knowledge positively influences the SME’s value. Furthermore, the mediation analysis supports the fact that digital technologies such as blockchain and big data fully mediate the relationship between CEO IT knowledge and SME value. Social media, the Internet of Things and artificial intelligence partially mediate the relationship between CEO IT knowledge and SME value. Originality/value This study adds to literature on CEO IT attributes in digital adoption during SME growth, supporting upper-echelon theory on the fit between CEO traits and IT knowledge.