Academic background of senior executives and enterprise digital transformation

Abstract

With the application of digital technology and its promotion of business model innovation, digital transformation has increasingly become an important strategic issue for enterprises. In this context, based on imprinting theory, we select all A-share listed enterprises in China from 2008 to 2022 as samples and study the relationship between the academic background of senior executives and the digital transformation of enterprises. The study results show that senior executives with academic backgrounds can significantly promote the digital transformation of enterprises. A test of the action mechanism shows that the academic background of senior executives plays a role in the promotion of the digital transformation of enterprises by improving enterprise innovation, and the degree of industry competition moderates the relationship between the academic background of senior executives and the digital transformation of enterprises. This paper applies imprint theory to explore the relationship between the academic background of executives and corporate digital transformation, expanding the research on how imprints affect corporate decision-making and the scope of imprint theory research, while also providing evidence to support government departments in formulating policies to encourage talented individuals with academic backgrounds to participate in corporate management.

Introduction

With the application of digital technology and its promotion of enterprise operational efficiency and business model innovation, the digital transformation of enterprises has become an important proposition¹. The digital transformation of enterprises is a process by which enterprises improve their businesses by triggering significant changes in their attributes through the adoption of a combination of information, computing, communication, and connectivity technologies². Today, digital technology is not only a tool for improving operational efficiency but also serves as the logic behind the transitioning of products, services and processes and the reshaping business, including such aspects as value creation, value delivery, and value capture³. Therefore, an increasing number of enterprises are engaging in digital transformation at the level of corporate strategy⁴ through the use of digital technology to achieve corporate transformation⁵. It can be seen that actively responding to China’s major strategies and policy orientations has positive theoretical and practical significance for the development of the digital economy and the exploration of the best ways to promote the digital transformation of enterprises to reduce the “digital gap” between developing and developed countries.

Labor, capital, entrepreneurs and knowledge are jointly leveraged to create value, which is one of the basic characteristics of the era of the knowledge economy. In this context, a large number of intellectuals with academic backgrounds who have been or are currently teaching in universities, working in scientific research institutions, and engaged in enterprise research are active on the front line of business operations. Senior executives with academic backgrounds have become a group that cannot be ignored by corporate management teams. Enterprise senior executives hold control over the enterprise and can decide on the business decisions of the enterprise, including the goals, methods and paths of digital transformation. However, no in-depth study has been conducted on the impact of senior executives’ academic experience on the digital transformation of enterprises. Although existing literature has studied the antecedents of digital transformation⁶, there is little research on whether senior executives with an academic background promote or hinder the digital transformation of enterprises, as well as the mechanisms and boundary conditions by which the academic background of senior executives affects the digital transformation of enterprises.

To explore the relationship between the academic background of senior executives and the digital transformation of enterprises, this study adopts imprinting theory for analysis. Imprinting theory originated in the field of Biology. In 1965, Stinchcombe introduced “imprinting” into organizational research. This concept was subsequently used widely in research at all levels, reflecting the view that “History is important”⁷. The basic point of imprinting theory is that the “imprint” on an individual that is formed during a “sensitive” period remains with an individual for a long time and does not change with subsequent changes in the external environment. Imprinting theory holds that imprinting shapes personal characteristics during specific sensitive periods in early life or those that occur during growth. These personal characteristics exert a lasting impact on future decisions and behaviors. Corporate senior executives have worked in various universities, scientific research institutions and associations. After long-term “academic training,” the “academic imprint” left on such executives has a certain impact on their lives or work. When they engage in corporate management activities, these activities naturally leave a corresponding “academic imprint”, which exerts an impact on business decision-making⁸. In other words, after people who have been engaged in academics move into corporate management positions, they remain deeply affected by the imprint of academic experience, which is reflected in the digital transformation of enterprises.

The main aim of this article is to determine whether the academic background of senior executives has an impact on the digital transformation of enterprises. Executives with academic backgrounds have more advantages than executives without academic backgrounds due to their long-term “academic training.” Does this advantage lead to differences among those enterprises that hire executives with academic backgrounds from those of other enterprises in terms of digital transformation? To answer this question, in this paper, we use the data of all A-share listed enterprises in China covering the period from 2008 to 2022 as a research sample to analyze the relationship between the academic background of executives and the digital transformation of enterprises. The study results show that senior executives with academic backgrounds can significantly promote the digital transformation of enterprises. This result remains valid following robustness tests such as changing the explained variables and explanatory variables and changing the measurement method. In this article, the impact of senior executives with academic backgrounds on the digital transformation of enterprises is studied under different scenarios. The results of the study show that for state-owned enterprises, high-tech industries, and enterprises in the eastern and central regions, this positive correlation is enhanced.The mechanism underlying the role of senior executives with academic backgrounds in the enhancement of the digital transformation of enterprises is further studied. The results of the study show that senior executives with academic backgrounds promote the digital transformation of enterprises by improving innovation input. Moreover, the degree of industry competition moderates the relationship between the academic background of senior executives and enterprise digital transformation.

The research contributions of this paper are mainly reflected in the following aspects: First, this paper focuses on the influencing factors of corporate digital transformation, incorporates the academic background of executives and corporate digital transformation into the same research framework, and clarifies the mechanism and boundary conditions between the two from the perspectives of innovation investment and industry competition, providing a beneficial supplement to the study of corporate digital transformation. Second, the imprint theory is applied in this paper to explore the relationship between the academic background of senior executives and corporate digital transformation, expanding the related research on how imprints affect corporate decision-making and the scope of imprint theory research. Third, as an important way for corporate industrial upgrading, how to promote digital transformation is an important issue in the operation of enterprises in the digital age. The research conclusions of this paper have certain reference significance for the reasonable allocation of senior management teams and further promotion of digital transformation.

Literature review and research hypotheses

Literature review

Academic background of senior executives

The academic background of corporate executives, that is, their professional experience in teaching at universities, working in research institutions, and engaging in research at associations, has a significant impact on their management work and their subsequent positions in management. Scholars have studied the impact of executives’ academic backgrounds on organizational behavior, strategic decision-making, and performance outcomes from various perspectives. Since the introduction of upper echelons theory, exploring the influence of executives’ individual characteristics on corporate management from the perspective of executive heterogeneity has become a research hotspot. Some studies have shown that the academic background of senior executives can help promote green technology innovation⁹, dual innovation¹⁰, corporate social responsibility^11,12, reputation maintenance¹³, capital market attention¹⁴, stable financial policies^15,16, accounting information quality¹⁷, knowledge spillover¹⁸, subjective assumptions¹⁹, and debt financing costs²⁰. Additionally, based on the imprint theory²¹, Hahn et al. found that scientists provide advantages for innovative startups. Hsu and Lim²² discovered that initial knowledge intermediaries had a positive imprint effect on their organization’s search patterns. The academic background of senior executives has a profound impact on innovation input, social responsibility, cost management and other aspects of enterprises. However, there is still a lack of literature regarding the impact of the academic experience of senior executives on the digital transformation of enterprises.

Digital transformation of enterprises

With the deepening application of digital technology and the continuous innovation of business and organizational models being driven by digital technology, digital transformation has gradually become a new development engine for enterprises. An increasing number of enterprises are aiming to improve service quality, find new growth points and even upgrade themselves through digitalization. At present, the research on the digital transformation of enterprises is divided into three main categories, namely, the essential concept, the consequences and the influencing factors behind the digital transformation of enterprises. (1) Regarding the concept of enterprise digital transformation, most existing scholars believe that digital technology forms the basis of digital transformation²³, that digital transformation is the transformation caused by information technology change²⁴, and that the different definitions of digital transformation are formed on this premise. The essence of the digital transformation of enterprises represented a hot topic in early research, and the “complete reprogrammability” and “data homogeneity” of digital technology enabled the generation and integration of digital innovation, resulting in new products, services, business models, strategies, and organizational forms²⁵. (2) Regarding the consequences of digital transformation for enterprises, in addition to considering to the positive impact of digital transformation on enterprises in different aspects, some scholars have also conducted research on the negative impact of digital transformation²⁶. For example, Ragesh and Baskaran²⁷ conducted research on the negative impact of digital transformation from the perspective of security and privacy. (3) Few academic studies have been conducted to investigate the factors affecting the digital transformation of enterprises. Some scholars have begun with digital leadership. For example, Weill et al.²⁸ show that a “digital-minded” board is a new factor for enterprises aiming to achieve performance growth in the digital economy era. The personal background of board members and the number of board members with rich digital experience serve as the two determinants of a “digital-minded” board, and the four most critical competencies in the digital leader profile are change vision, forward thinking, the understanding of technology and change direction²⁹. Even under a lack of technical background and experience, senior executives play an indispensable role in digital transformation. They may become change promoters, internal experts, external experts or “lone icebreakers”³⁰. The above analysis reveals that although existing studies have shown that the personal background of senior executives affects the digital transformation of enterprises, the influence and mechanism of the academic background of senior executives on the digital transformation of enterprises have not yet received its due attention.

Research hypotheses

Marquis and Tilcsik³¹ reviewed and integrated the literature on imprinting, and they defined imprinting as the process by which a focal entity develops “prominent features” during periods of vulnerability that “persist despite significant changes in the environment in subsequent periods.” Imprinting theory holds that during a short sensitive period, focal entities (including organizational groups, individual organizations, departments within organizations, and individuals) develop characteristics that reflect the salient characteristics of the environment, and these characteristics persist regardless of subsequent changes in the environment³¹, while also expanding, weakening, and transforming³². The imprinting theory was first applied in the field of organizations, under the assumption that in the process of organizational development, even if the external environment changes, the remaining “imprint” exerts a lasting impact on the enterprise³³. In recent years, scholars have gradually shifted their research on imprinting theory from organizations to individuals. The literature studies the impact of members with academic backgrounds on the board of directors and in management. For example, senior executive teams with academic backgrounds can effectively reduce corporate debt financing costs³⁴. Under this topic, the academic experience of senior executives represents a process through which such executives are “imprinted.” This experience shapes the characteristics that match executive academic experience in terms of cognition and ability and has a lasting impact on the digital transformation of the enterprise. Enterprise digital transformation is essentially a deep transformation and reconstruction of business, management and business models driven by a new generation of information technology. This essentially involves a high-level enterprise design innovation rather than simply being driven by technology, and the role played by senior executives as represented by the CEO office increases throughout different stages of the digital transformation of enterprises²⁹. Therefore, senior executives with academic backgrounds who pursue achievement, innovation and forward-looking qualities play an active role in this process and thereby promote the digital transformation of enterprises. First, the experience of teaching in universities, working in scientific research institutions, and conducting enterprise research results in a strong sense of honor derived from social recognition. Therefore, after senior executives with academic backgrounds engage in management work and take up management positions, their previous cognitive imprints are still in play. To reflect their self-worth, senior executives with academic backgrounds are willing to demonstrate their abilities in the transformation and upgrading of enterprises, which leads to increased digital transformation efforts in their enterprises. Second, innovation is an inevitable requirement for a scientific researcher. It is difficult for a scientific researcher to adhere to these rules while making outstanding achievements. Senior executives with academic backgrounds have faced high innovation requirements in their past studies and work and have developed strong cognitive skills, including critical thinking. This ability is “imprinted” when they leave the academic field and enter into an enterprise. Therefore, such executives have greater advantages in terms of information acceptance, screening and processing in the field of transformation and upgrading enterprises. They can accept digital transformation at a lower cost and faster speed to promote enterprise digital transformation. Third, being forward-looking is also necessary for a good scientific researcher. Tracking the development of academic frontiers is a necessary prerequisite for the realization of scientific research results; at the same time, exploring the unknown in academic research requires a high tolerance for failure. Digital technology innovation has arisen in developed countries and regions, and a certain degree of uncertainty pervades the transformation process. However, senior executives with academic backgrounds can foresee such trends earlier, pay greater attention to the enterprise’s long-term development when making decisions, and exhibit a high tolerance for transformation failures, which lends them a greater willingness to engage in early digital transformation. In summary, we believe that, whether a result of their achievement-seeking characteristics, forward-looking nature, or innovativeness, senior executives with academic backgrounds tend to be keen on promoting the digital transformation of enterprises. Based on the above analysis, the following hypothesis is proposed:

H1

The academic background of senior executives significantly promotes the digital transformation of enterprises.

Digital transformation is the transformation and upgrade of the original production mode, technology, and equipment of an enterprise, as well as the development and creation of digital technology and digital scenarios. In this process, enterprises require continuous support from innovative activities to better achieve digital transformation³⁵. Conversely, the lack of innovative activities is not conducive to creating an effective digital innovation environment for enterprises, and they may lose sensitivity to cutting-edge digital technologies³⁶. This paper believes that investment in innovation will play a mediating role between the academic background of executives and corporate digital transformation. Based on the literature, the mediating role of innovation input in the academic background of senior executives and the digital transformation of enterprises is mainly reflected in the following: On the one hand, organizations such as universities, scientific research institutions, and associations are “innovation-prone,” and university personnel who are engaged in teaching and research need to follow world trends to acquire cutting-edge knowledge and maintain leading positions in their fields³⁷. On the other hand, regardless of whether such organizations are are universities, scientific research institutions or associations, they are all highly professional organizations, and the higher that the degree of professionalism is, the higher the innovation requirements for employees³⁸, which shows that innovation plays an active role in academic research and still represents a basic quality and necessary skill for academic researchers³⁹. Innovation becomes one of the important ways of thinking for academic researchers once their professional-related academic training⁴⁰ comes to affect their future work, life and enterprise management and promotes their innovation input⁴¹. On the other hand, innovation input play an important role in the digital transformation of enterprises⁴² and can accelerate its advancement⁴³. In summary, executives with an academic background are conducive to ensuring the continuity and stability of corporate digital transformation and innovation investment, thereby promoting the development of corporate digital transformation. Based on the above analysis, the following hypothesis is proposed:

H2

Innovation input have a mediating effect on the relationship between the academic background of senior executives and the digital transformation of enterprises.

Imprint theory posits that the imprint effect is influenced by the environmental conditions an individual encounters later in life. When the external environment releases information consistent with the imprint, the individual’s imprint will be reinforced⁴⁴. With the application of digital technologies, such as intelligence, big data, and cloud computing, as well as factors such as the transition of industry from a growth stage to a mature stage, the degree of competition in some industries is gradually increasing, which exerts an important impact on the technological innovation of enterprises^45,46,47. This paper suggests that the degree of industry competition will play a moderating role between the academic background of executives and corporate digital transformation. According to the literature, the moderating role of industry competition on the academic background of senior executives and the digital transformation of enterprises is manifested mainly in the following aspects. Industries under low competition have a relatively loose competitive environment, and their enterprises have higher profit margins⁴⁸. Thus, they have more extensive budgets with which to implement digital transformation, the academic background of their senior executives is more “useful,” and the role played in the promotion of digital transformation is more evident. Contrary to this, industries with high levels of competition often have lower profits, which leads to limited resources for digital transformation, thereby being detrimental to the process of digital transformation. Furthermore, when competition in an enterprise’s industry is relatively less fierce, enterprise managers face less operating pressure, so they are better able to implement digital transformation and promote both growth⁴⁹ and business model innovation⁵⁰. During this process, the role of senior executives with academic backgrounds in the digital transformation of enterprises also becomes amplified due to the unique advantages of such executives. When enterprises are in a relatively intense competitive industry environment, the attention of executives will be diverted to dealing with competition and other affairs, which is not conducive to the enterprise’s digital transformation. Based on the above analysis, the following hypothesis is proposed:

H3

The degree of industry competition has a moderating effect on the relationship between the academic background of senior executives and the digital transformation of enterprises.

Based on the above theoretical analysis, a theoretical model is further constructed for the study, as shown in Fig. 1.

Fig. 1

Research logical framework diagram.

Research design

Sample selection and data sources

All A-share listed enterprises in China during the period from 2008 to 2022 are used as the initial research sample in this study. We screened the initial sample according to the following principles: (1) We eliminated the data of ST and *ST enterprises; (2) Considering the particularities of the financial, insurance and real estate industries, according to previous research practices, we eliminated the data of the listed enterprises in the financial, insurance and real estate industries; (3) We eliminated any samples with missing data. In the end, the annual observations of 30,407 enterprises were obtained. The financial data used in this article all come from the CSMAR database. To avoid the impact of extreme values on the analysis results, we performed a 1% winsorize tail reduction on all continuous variables.

Definition of variables

Explained variable

The digital transformation (DT) of the enterprise. By referring to the practice of Yuan et al.⁵¹, first, a digital term dictionary of enterprises was constructed based on the semantic system of national policy. By searching the websites of the Central People’s Government and the Ministry of Industry and Information Technology of the People’s Republic of China, important national policy documents related to the digital economy and published between 2000 and 2022 were obtained through the use of artificial screening to extract keywords related to enterprise digitization. The enterprise digitization term dictionary was developed based on the above vocabulary; then, text analysis was performed on the “Management Discussion and Analysis” section (MD&A) of the annual reports of listed companies, and the term frequency related to enterprise digitization in the annual reports was obtained through statistics. Finally, the sum of the use frequencies of terms related to enterprise digitalization was divided by the length of the MD&A section in annual reports to measure the microscopic degree of enterprise digitalization The greater the value of the DT indicator is, the greater the degree of enterprise digitalization.

Explaining variable

Academic executives (xsgg). In this paper, academic executives are defined as follows. (1) The proportion of academic executives (r_xsgg); and (2) executives with or without academic experience (isxsgg). (1) The proportion of academic executives represents the proportion of executives with an academic background on the executive team to the total number of executives. That is, the proportion of academic executives (r_xsgg) = the number of executives with academic experience/the total number of people on the executive team. The term “executive team” refers to the senior executives who directly participate in enterprise operational decision-making other than the board of directors and its members, including the general manager, president, CEO, deputy general manager, vice president, and secretary or chairperson of the enterprise, as well as other executives published in the annual report (including senior executives who also serve as directors). By referring to previous study conventions, the term academic executives refers to those executives who have academic experience teaching in colleges and universities, working in scientific research institutions, or doing enterprise research either in the past or at present³⁴. (2) Executives with or without academic experience (isxsgg) serve as a virtual variable of the academic experience of executives. A value of 1 is assigned to executives if executives with academic backgrounds serve as members of the executive team, and a value of 0 is assigned otherwise. The term “isxsgg” will be used for robustness testing.

Mediating variable

Innovation input (r_yftr). By referring to previous studies, the innovation input of an enterprise are measured by using the ratio of R&D expenditure to the operation revenue of the enterprise (r_yftr).

Moderating variable

The degree of industry competition (lerner). In this paper, the degree of industry competition is measured using Lerner’s index of the enterprise industry. The greater the Lerner index value of an industry is, the greater the degree of monopoly in that industry and the lower the degree of industry competition. This paper refers to the research of Xing and Chen⁵² and selects the enterprise Lerner index (PCM) as a substitute variable for industry monopoly power, that is, PCM = (Operating Income - Operating Costs - Sales Expenses - Administrative Expenses)/Operating Income. Further considering the need to compare enterprises in different industries, the paper refers to the relevant research of Zhou and Zhou⁵³ and adjusts the enterprise Lerner index by the industry average, that is, by subtracting the Lerner index average weighted by sales in the industry from the Lerner index of a single enterprise, to obtain the measurement indicator of industry monopoly power (lerner). The larger the lerner value, the higher the degree of industry monopoly the enterprise is in, and the lower the degree of industry competition. Compared with HHI which focuses on the concentration of the entire market, the Lerner Index pays more attention to the market power of individual firms.

Control variables

By referring to the practices followed in the literature, enterprise control variables, such as financial characteristics and governance, were included, including company size (lnsize), company capital structure (Lev), board size (Board), return on assets (Roa), net cash flow of operation (CFO), growth rate of main business income (Growth), equity concentration (Shrcr5), shareholding ratio of executives (Sr), working in both positions (Both), and enterprise age (Age). In addition, in this paper, the fixed effects of time and industry are controlled. In summary, the main variables are explained in Table 1.

Table 1 Definition of variables.

Model construction

To test H1, the following regression equation is used:

$${\text{DT}}=\upalpha 0+\upalpha 1*{\text{r\_xsgg}}+{\upalpha}{\text{i*Controls}}+{\upvarepsilon}$$

(1)

where DT is the digital transformation of enterprises, xsgg is the academic background of senior executives, the continuous variable (1) is the proportion of academic senior executives (r_xsgg), and the dummy variable (2) reflects whether senior executives have an academic background. These variables are used to examine the relationship between the academic background of senior executives and the digital transformation of enterprises. Controls is the control variable, and ε is the random error term.

To test H2, this paper draws on Jiang⁵⁴ operational suggestions for the analysis of the mechanism of influence and sets the following regression equations:

$${\text{r\_yftr = }}{\upbeta }0 + {\upbeta }1*{\text{r\_xsgg + }}{\upbeta }\,{\text{i*Controls + }}{\upvarepsilon }$$

(2)

where r_yftr is the mediating variable, and the other variables are consistent with those used in Formula (1). The examination is on whether β1 is statistically significant, to thereby determine if there is an existing mediating effect.

To test H3, the following regression equation is used:

$${\text{DT}}={\updelta }_{{\text{0}}} + \updelta_{1} {\text{r}}\_{\text{xsgg + }}{\updelta }_{2} {\text{lerner + }}{\updelta }_{3} {\text{r\_xsgg}} \times {\text{lerner + }}{\updelta }{\text{CVs}}_{{{\text{it}}}} + \upvarepsilon _{{{\text{it}}}}$$

(3)

where Lerner represents the degree of industry competition. On the basis of Model (1), the interaction term of r_xsgg and Lerner is introduced to explore the moderating effect of the degree of industry competition on the academic background of senior executives and the digital transformation of enterprises. The moderating effect is tested through the following two steps. First, is the existence of a moderating effect is determined through the significance of δ3. If the variable is significant, then there is a moderating effect; otherwise, there is no moderating effect. In the second step, if there is a moderating effect, then the moderating direction of the digital level is judged by the positive and negative coefficients of δ3 and δ1. If the signs of the coefficients of δ3 and δ1 are the same, then the degree of industry competition promotes the impact of the academic background of senior executives on the digital transformation of enterprises; conversely, the degree of industry competition weakens the impact of the academic background of senior executives on the digital transformation of enterprises. To avoid the issue of reverse causality, the independent variables and control variables have been treated with a one-period lag.

Empirical results and interpretation

Descriptive statistics

Table 2 reports the descriptive statistics for the variables. From the descriptive statistics in Table 2, we can see that in the sample of this article, the average value of digital transformation of enterprises (DT) is 0.461, the maximum value is 2.811, the minimum value is 0, and the standard deviation is 0.551, which show that there are certain differences in the level of digital transformation between different enterprises. The maximum value of the proportion of academic senior executives (r_xsgg) is 1.000, indicating that some enterprises have reached 100% of their senior executive team having an academic background in individual years, and the average value is 0.087, indicating that 8.7% of the observation samples have hired senior executives with academic backgrounds. The descriptive statistical results of the remaining control variables are shown in Table 2 and are not individually described.

Table 2 Descriptive statistics.

Benchmark regression analysis

To ensure the validity of the model estimation, this paper also conducted a variance inflation factor (VIF) test for all variables. The VIF values for all variables are below the threshold of 10, with an average VIF value of 1.27, indicating that there is no multicollinearity among the variables. Next, the Hausman test was used to determine whether the fixed effects model or the random effects model should be used. The results of the Hausman test strongly reject the hypothesis of using the random effects model; therefore, this article uses the panel fixed effects model. Based on the setting of research Model (1), the OLS regression method was used to empirically test H1; that is, it was used to examine the specific impact of the academic background of senior executive teams on the digital transformation of enterprises (DTs).

Table 3 reports the regression results for the impact of the academic background of senior executives on the digital transformation of enterprises. Columns (1) report the regression results without the use of control variables, and Columns (2) report the regression results incorporating the use of control variables. The estimated coefficient for r_xsgg1 in column (1) is 0.2439, and it is significant at the 1% level; after including control variables, the estimated coefficient for r_xsgg1 in column (2) is 0.1967, significant at the 1% level, indicating that the academic background of executives effectively promotes corporate digital transformation. In summary, H1 is supported.

Table 3 Academic background of senior executives and enterprise digital transformation.

(1) The t values displayed in brackets are corrected by robust heteroskedasticity; (2) *, **, and *** represent significance at the 10%, 5%, and 1% levels, respectively (the same applies below).

Test of the mediating effect

The report results are shown in Table 4, where columns (1) and (2) respectively report the regression results with and without control variables. In column (2), the estimated coefficient for r_xsgg1 is 2.9170 (P < .01), indicating that the academic background of executives will intensify the company’s innovation investment, thereby enhancing innovation resources. Continuous and stable innovation investment is an important driving factor for the development of corporate digital transformation⁵⁵. The more innovation investment increases, the more it is conducive to the development of digital transformation in enterprises. Thus, Hypothesis 2 is verified.

Table 4 Mediating effect test.

Moderating effect test

The report results are shown in Table 5, where columns (1) and (2) respectively present the regression results with and without control variables. In column (2), the coefficient of the interaction term between executive academic background and industry competition intensity is 0.6326 (P < .01), indicating that the intensity of industry competition has a positive moderating effect on the relationship between executive academic background and corporate digital transformation, thus verifying Hypothesis H3 of this paper.

Table 5 Moderating effect test.

Robustness test

To solve the possible endogeneity problem, a variety of methods are used for testing.

Endogeneity treatment

Instrumental variables

In this article, the instrumental variable method is also used to solve the endogeneity problem. We select the proportion of senior executives with an academic background in other enterprises in the same industry in the same year to serve as the instrumental variable and use the two-stage least squares method for robustness testing, the test results are shown in Table 6. The reason behind the choice of this instrumental variable is that the proportion of senior executives with academic backgrounds in other enterprises in the same industry in the same year can be reflected in the industry competition during that year. However, senior executives with academic backgrounds more frequently serve as independent directors. Due to the employment system of independent directors, an independent director can serve as an independent director of multiple enterprises. The proportion of senior executives with academic backgrounds in other enterprises in the same industry in the same year is closely related to the proportion of senior executives with academic backgrounds in the enterprise, but these executives do not participate in the decision-making of the enterprise itself and thus do not directly affect the digital transformation of the enterprise. Therefore, the proportion of senior executives with academic backgrounds from other enterprises in the same industry in the same year is not correlated with the digital transformation of enterprises. The regression results obtained using 2SLS are shown in Table 6. The proportion of senior executives with an academic background still has a significant positive impact on the digital transformation of enterprises.

Table 6 Two-stage regression.

Propensity score matching method

To solve the problem of sample bias, the propensity score matching method is used to conduct a robustness test based on whether the enterprise has senior executives with academic experience. The test results are shown in Table 7. With DT (the digital transformation of enterprises) used as the explained variable, logit regression was performed for enterprise size (lnsize), enterprise capital structure (Lev), board size (Board), return on assets (Roa), operating net cash flow (CFO), main business income growth rate (Growth), ownership concentration (Shrcr5), senior executives’ shareholding ratio (Sr), two-job combination (Both) and enterprise age (Age), as well as industry dummy variables and year dummy variables to calculate the propensity score, based on which multiple regression analysis was performed, and the results show that the matching effect is good. In the sample regression after matching, the estimated coefficient of r_xsgg is significantly positive at the 1% level. In summary, the results of this article remain robust to various testing methods.

Table 7 Propensity score matching method.

Alternative variable

To ensure the effectiveness and scientific nature of the results in this paper, we changed the measurement method of the dependent variable, using the proportion of the year-end intangible asset details related to digital transformation disclosed in the financial report notes of listed companies to the total amount of intangible assets to measure the degree of corporate digitalization (DT2). Table 8 reports the statistical results, with the estimated coefficients of DT2 being 0.0277 and 0.0178, significantly positive at the 1% and 5% levels, respectively. This indicates that companies with a higher proportion of academic executives can better promote corporate digital transformation.

Table 8 Substitution of explained variables.

Since the CEO is the primary decision-maker in corporate operations and the most influential decision-maker in the company, they play an irreplaceable role in promoting, planning, and implementing corporate digital transformation, directly affecting its success or failure. To further test the robustness of the conclusions of this paper, we use the CEO’s academic background (CEO_xsgg) as an alternative variable for the proportion of academic executives (r_xsgg) to examine whether executives with an academic background can effectively promote corporate digital transformation. In addition, we also use (isxsgg) as an alternative variable for the proportion of academic executives (r_xsgg). The reported results are shown in Tables 9 and 10, with coefficients of 0.0504 and 0.0569, respectively, both significant at the 1% level. This indicates that CEOs with an academic background can effectively promote corporate digital transformation.

Table 9 Replace the explanatory variable with CEO_xsgg.

Table 10 Replace the explanatory variable with isxsgg.

Changing the measurement method

Although the overall distribution of the digital transformation of enterprises is scattered within a positive range, some enterprises’ digital transformation averages around 0. Therefore, the samples herein can be applied to the Tobit model. In this article, the original OLS regression is changed to Tobit regression, and the results show that the estimated coefficients of DT are all significantly positive at the 1% level, which demonstrates the robustness of H1.

Heterogeneity analysis

In the empirical test of the benchmark regression analysis part, the positive impact of executives’ academic background on corporate digital transformation was verified, with innovation input being a potential pathway, and the degree of industry competition moderating the relationship between the two. So, under different circumstances, what are the differences in the positive relationship between executives’ academic background and corporate digital transformation? This paper further examines the specific contexts in which the executives’ academic background and corporate digital transformation play a role, such as the ownership nature of the enterprise, whether it is a high-tech industry, and the region where the enterprise is located. This paper uses group testing to distinguish whether the positive correlation between executives’ academic background and corporate digital transformation, as found in the previous text, is affected by factors such as the ownership nature of the enterprise, whether it is a high-tech enterprise, and the region where it is located.

Enterprise heterogeneity

Since senior executives with academic backgrounds have accrued rigorous, forward-looking and innovative characteristics through their past work, and these imprints lead to a high degree of acceptance of enterprise digital transformation, regardless of enterprise ownership, they all value the benefits brought by digital transformation. At the same time, however, the rigorous academic thinking and prudent logical thinking cultivated by senior executives who engaged in academic research in their early careers prevent their old imprints that were formed in their past work from being easily replaced by “new imprints” from their new environment³⁴. However, compared with non-state-owned enterprises, the natural connection between state-owned enterprises and the government enables state-owned enterprises to obtain a large amount of scarce resources, which includes government subsidies, and senior executives with academic backgrounds in state-owned enterprises are more motivated to promote, plan and implement digital transformation of enterprises with greater advantages. In summary, we speculate that senior executives with academic backgrounds can significantly promote the digital transformation of enterprises, regardless of whether they are in state-owned enterprises or not. The positive correlation between the academic background of senior executives in state-owned enterprises and the digital transformation of enterprises is thus strengthened.

Table 11 lists the test results as grouped by business ownership. The results show that the correlation coefficients between the proportion of senior executives with an academic background (r_xsgg) and the digital transformation of enterprises (DT) in the two groups, state-owned enterprises and nonstate-owned enterprises, are 0.2186 and 0.1169, respectively, which are significant at the 1% level. A coefficient test between groups was also conducted for this study, and the difference was significantly positive at the 5% level. The above test results are consistent with our expectations. Senior executives with academic backgrounds can better promote the digital transformation of enterprises regardless of ownership type. Compared with that of nonstate-owned enterprises, the positive correlation between the academic background of senior executives in state-owned enterprises and the digital transformation of enterprises is shown to be enhanced.

Table 11 Group test based on ownership type.

Industrial heterogeneity

In a relatively fairly competitive environment, compared with high-tech enterprises, non-high-tech enterprises have less demand for innovation and exhibit lower levels of corporate governance; additionally, such industries are generally more mature, and the level of information asymmetry between enterprises and external investors is lower. Therefore, in the context of non-high-tech enterprises, senior executives with academic backgrounds are more motivated to promote the digital transformation of enterprises in an attempt to bridge the “digital gap.” In summary, we speculate that senior executives with academic backgrounds can significantly promote the digital transformation of enterprises, regardless of tech level; however, the positive correlation between senior executives with academic backgrounds in non-high-tech enterprises and the digital transformation of enterprises is greater than that in high tech enterprises.

Table 12 lists the test results as grouped by tech level. The results show that the correlation coefficients of the ratio of senior executives with academic backgrounds (r_xsgg) and the digital transformation of enterprises (DT) in the high-tech and non-high-tech groups are 0.1999 and 0.0990, respectively, which are significant at the 1% level. A coefficient test was also conducted between groups for this study, and the difference was significantly positive at the 1% level. The above test results are consistent with our expectations. Senior executives with academic backgrounds can better promote the digital transformation of both high-tech enterprises and non-high-tech enterprises. Compared with those in non-high-tech industries, senior executives with academic backgrounds in non-high-tech enterprises are more strongly correlated with the digital transformation of enterprises.

Table 12 Group test based on tech level.

Regional heterogeneity

Compared with that in the eastern region, the noneastern region is relatively economically underdeveloped, exhibits a lower marketization process, and faces relatively less intense market competition. Since the digital transformation of enterprises in less active areas lags behind that in active areas, the demand for digital transformation is greater. Therefore, in the context of the other regions aside from the eastern region, senior executives with academic backgrounds can more effectively improve the digital transformation of enterprises. In summary, we speculate that senior executives with academic backgrounds, regardless of region, can significantly promote the digital transformation of enterprises, but the positive correlation between senior executives with academic backgrounds s and the digital transformation of enterprises is greater in noneastern region.

Table 13 lists the test results grouped according to the regional location of enterprises. The results show that the correlation coefficients of the ratio of senior executives with academic backgrounds (r_xsgg) and digital transformation of enterprises (DT) in the eastern region and that in the central and western regions are 0.1843 and 0.0216, respectively, which are significant at the 1% level. A coefficient test between groups was also conducted, and the difference was significantly positive at the 1% level. The above test results are consistent with our expectations. Senior executives with academic backgrounds can better promote the digital transformation of enterprises regardless of region. Compared with those of enterprises in the western region, the positive correlations between senior executives with academic backgrounds and the digital transformation of enterprises are greater for enterprises located in the eastern and central regions.

Table 13 Group test based on regional location.

Conclusions and implications

Conclusions

Based on imprinting theory, the impact of senior executives with academic backgrounds on the digital transformation of enterprises is analyzed. Taking the data of all A-share listed enterprises in China over the period from 2008 to 2022 as the research sample, we empirically examine the relationship between the academic background of senior executives and the digital transformation of enterprises. The empirical research results are as follows: First, the presence of senior executives with academic backgrounds can significantly promote the digital transformation of enterprises, which still holds true after robustness tests. Second, the internal mechanism test results show that senior executives with academic backgrounds promote the digital transformation of enterprises by improving their innovation input. Third, the positive correlation between senior executives with academic backgrounds and the digital transformation of enterprises under different contexts is higher for both state-owned enterprises and high-tech industries, as well as for enterprises in the eastern and central regions.

Compared to existing research, the contributions of this paper are mainly reflected in the following two aspects: First, based on imprint theory, this paper explores the mediating mechanism by which the academic background of executives affects corporate digital transformation, opening the “black box” of how individual imprints affect corporate decision-making. This paper answers key questions such as “How does the academic background of executives drive the executive team’s attention to innovation investment, thereby affecting corporate digital transformation,” expanding the research on how imprints affect corporate decision-making. Existing imprint research has proven the relationship between the environmental conditions at the time of organizational founding or the experiences of founders, founding teams, or other important organizational members and subsequent organizational outcomes, but there is little research on the internal processes behind the relationship, that is, insufficient exploration of the mediating mechanisms between imprints and corporate decision-making. Opening the “black box” between the academic background of executives and corporate digital transformation has important theoretical significance for how enterprises can leverage the academic background of executives to influence corporate digital transformation. Second, this paper further reveals the activating effect of situational factors on imprints, echoing previous research⁵⁶. This paper analyzes the activating effect of the environmental factor of industry competition on corporate digital transformation and finds that a high degree of industry competition will strengthen the imprint effect of the executives’ academic background in digital transformation.

Implications and suggestions

In this article, the impact of the presence of senior executives with academic backgrounds on senior executive teams on the digital transformation of enterprises is explored. The study finds that senior executives with academic backgrounds can effectively promote the digital transformation of enterprises, which has certain guiding significance in the in-depth understanding of the digital transformation of enterprises, corporate management team building, and the government guidance, as issued by government regulatory authorities.

First, for the enterprise as a whole, the study findings show that senior executives with academic backgrounds play a positive role in the promotion of enterprise digital transformation. Therefore, enterprises should pay attention to the personal experience of managers and select suitable senior executives to promote better development. As the proportion of senior executives with academic backgrounds on executive teams increases, the effect of academic backgrounds on the promotion of enterprise digital transformation becomes increasingly obvious. An increasing number of enterprises are becoming aware of the necessity of digital transformation and investing resources in their own digital transformations. Enterprises can hire senior executives with academic backgrounds within the appropriate scope to promote the enterprise’s digital transformation process; for management, a dialectical perspective on the imprinting effect and an awareness that behavioral decisions are affected by past experiences is necessary to amplify the positive effects on the decision-making process. At present, China’s central enterprises, state-owned enterprises and private enterprises, particularly listed enterprises, are vigorously promoting the digital transformation of enterprises. This study shows that senior executives with academic backgrounds can promote the digital transformation of enterprises to a certain extent, which has certain implications for enterprise human resources management. Relevant measures can be formulated to provide correct guidance in terms of talent allocation, talent training, talent optimization, and cultural construction to give full play to the advantages of senior executives’ previous academic experience.

On the other hand, this research also provides microevidence to support the government department’s efforts to formulate relevant policies. This study shows that senior executives with academic backgrounds have a significant effect on promoting the digital transformation of enterprises and that the relationship between the above two factors exert a greater effect on state-owned enterprises, non-high-tech enterprises, and noneastern enterprises. Currently, board secretaries, independent directors and others have become important corporate senior executives. Therefore, relevant departments should formulate and actively introduce incentive policies around the qualifications of specific groups of people to attract talent with academic backgrounds to participate in corporate operations to promote improved development under specific contexts.