Benefits of managerial overconfidence for corporate digital transformation: Evidence from China
Contact us if these videos are not relevant.
Contact us if these videos are not relevant.
View abstract on PubMed
Summary
This summary is machine-generated.Managerial overconfidence positively impacts corporate digital transformation, driven by R&D investment. This effect is stronger in non-state-owned firms, offering insights for executives and policymakers.
Area Of Science
- Business Administration
- Management Science
- Organizational Behavior
Background
- Managerial cognitive biases, specifically overconfidence, can influence strategic decisions.
- Digital transformation is a critical process for modern businesses.
- Understanding the drivers and moderators of digital transformation is essential for firm success.
Purpose Of The Study
- To investigate the relationship between managerial overconfidence and corporate digital transformation.
- To examine the mediating role of R&D investment in this relationship.
- To explore the boundary condition of firm ownership (state-owned vs. non-state-owned) on the effectiveness of R&D investment in digital transformation.
Main Methods
- Empirical analysis of a sample of Chinese listed firms from 2011 to 2022.
- Econometric modeling to test the proposed relationships and mediation effects.
- Comparative analysis between state-owned and non-state-owned enterprises.
Main Results
- Managerial overconfidence shows a significant positive association with corporate digital transformation.
- R&D investment mediates the positive relationship between managerial overconfidence and digital transformation.
- The positive effect of R&D investment on digital transformation is more pronounced in non-state-owned firms compared to state-owned firms.
Conclusions
- Managerial overconfidence can be a catalyst for digital transformation, particularly when channeled through R&D investment.
- Firm ownership structure moderates the impact of R&D investment on digital transformation.
- Findings provide actionable insights for corporate leaders and policymakers regarding the strategic management of digital transformation and R&D investment.
Contact us if these videos are not relevant.
Contact us if these videos are not relevant.
Related Concept Videos
The Stereotype Content Model (SCM) was first proposed by Susan Fiske and her colleagues (Fiske, Cuddy, Glick & Xu, 2002; see also Fiske, 2012 and Fiske, 2017). The SCM specifies that when someone encounters a new group, they will stereotype them based on two metrics: warmth—or that group’s perceived intent, and how likely they are to provide help or inflict harm—and competence—or their ability to carry out that objective. Depending on the warmth-competence...
Creative thinking encompasses innovative and unconventional methods for addressing challenges, often leading to groundbreaking solutions. Instead of focusing solely on enhancing existing systems, such as increasing smartphone battery capacity, creative thinking might inspire advancements like energy-efficient batteries or processors that minimize power consumption. This multidimensional approach underscores the importance of exploring novel pathways to innovation.
Divergent thinking is the...
People can go to great lengths to protect their self-image and present themselves in ways that they want others to see them. Sociologist Erving Goffman presented the idea that a person is like an actor on a stage. Calling his theory dramaturgy, Goffman believed that we use “impression management” to present ourselves to others as we hope to be perceived. Each situation is a new scene, and individuals perform different roles depending on who is present (Goffman, 1959). Think about...