Master One’s Craft: CEOs With IT Backgrounds and Firm Digital Innovation

We investigated the impact of CEOs with information technology (IT) backgrounds on firm digital innovation. Using Chinese A-share listed firms in 2007-2022, we found that CEOs with IT backgrounds can significantly enhance a firm's digital innovation. Heterogeneity tests indicate that the promotion of digital innovation by CEOs with IT backgrounds is more pronounced in state-owned firms, firms facing a competitive disadvantage, and regions with lower levels of marketization. Two conduits through which CEOs with IT backgrounds stimulate digital innovation are the augmentation of digital attention and the elevation of human capital levels. Furthermore, CEOs with IT backgrounds can create shareholder wealth by driving firm digital innovation. We examines the driving factors of digital innovation activities from the perspective of CEO’s personal traits, providing crucial insights into expediting digital talent development and supporting firm digital transformation.