Executive Cognitive Structure, Digital Policy, and Firms’ Digital Transformation

Executives play a key role in the digital transformation of enterprises. However, currently, few studies explore the impact of the executive cognitive structure on the digital transformation of enterprises. In this article, we reveal the relationships of the executive cognitive structure with the digital transformation of enterprises and the situational boundary from the perspectives of cognitive centrality and complexity. Relying on cognitive and institutional theory, we argue that both executive cognitive complexity and centrality facilitate corporate digital transformation. In addition, we also believe that the strong institutional pressure caused by digital policies has enhanced the roles of executive cognitive centrality and cognitive complexity in promoting the digital transformation of enterprises. Considering China's A-share automotive industry listed companies from 2014 to 2019 as the research object, we have obtained strong empirical evidence for our views. This article is the first to analyze the factors driving firms' digital transformation from the perspective of executive cognition.