Department of Accounting
Faculty of Business & Economics
Universiti Malaya
50603 Kuala Lumpur, MALAYSIA.
Department of Accounting
Faculty of Business & Economics
Universiti Malaya
50603 Kuala Lumpur, MALAYSIA.
Abstract
Digital transformation has emerged as a key strategic priority for firms navigating the Fourth Industrial Revolution, particularly as digital technologies extend beyond traditional technology sectors. This study investigates how CEO demographics influence corporate digital transformation among Chinese non-technology listed firms. Drawing upon upper echelons theory, we argue that observable CEO attributes reflect executives’ cognitive bases, values, and strategic preferences, which in turn influence firms’ digital strategic choices. Our focus on non-technology firms is warranted because digital transformation in these contexts represents a substantive strategic shift rather than an inherent industry characteristic. Using unbalanced panel data from Chinese non-technology A-share listed firms from 2015 to 2024, we construct a text-based measure of digital transformation derived from the keyword analysis of annual reports. Our results indicate that CEO age is negatively associated with digital transformation, whereas female CEOs exert a significant positive effect; however, the relationship between founder status and digital transformation is not statistically significant. This research extends upper echelons theory beyond established strategic outcomes such as innovation and risk-taking to address digital transformation, a phenomenon requiring broader organisational change across processes and strategic activities. The findings offer practical implications for boards, managers, and policymakers concerned with corporate digital transformation.
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