Digital knowledge-based faultlines in top management teams: A new perspective on intra-executive division
摘要
Despite existing research highlighting that digital executives play a critical role in the digital age, scholarly attention to whether and how the alignment between these executives and other top management team (TMT) members affects a firm’s digital transformation (DT) is still limited. This study introduces the concept of digital knowledge-based faultlines to assess the extent to which digital executives are distinct from other TMT members, and investigates whether and how these faultlines influence a firm’s DT. Using a sample of Chinese listed firms from 2010 to 2023, we find that TMT digital knowledge-based faultlines positively affect corporate DT. For interactions, we find that slack resources and environmental dynamism positively moderate the relationship between TMT digital knowledge-based faultlines and corporate DT. Moreover, we find that the interaction effect of TMT digital knowledge-based faultlines and slack resources is more pronounced when environmental dynamism is lower. Our research reveals that TMT digital knowledge-based faultlines play a pivotal role in determining corporate DT and offers new insights into the contextual factors that influence TMT digital knowledge-based faultlines. Theoretical and practical implications of these findings are discussed.