Corporate digital innovation and transformation have become strategic imperatives, making the effective implementation and adoption of digital technologies a critical focus for corporate leaders. This study aims to explore the influence of female executives on management’s digital innovation orientation (DIO) while revealing the essential mechanisms within this dynamic relationship.
Drawing on the resource-based view, critical mass theory and upper echelons theory, this study used regression analysis on data from China’s A-share listed companies (2007–2022) while checking on the robustness and endogeneity of the method.
The analysis reveals that firms with higher female representation in senior management exhibit a stronger association with DIO. Managerial myopia serves as a mediator in the relationship between female executives and DIO, indicating that female leaders tend to advocate for long-term strategic thinking over short-term gains. Furthermore, a critical mass of at least three female executives is necessary to drive meaningful change. In addition, the age, education and technical backgrounds of female executives further enhance management’s focus on digital innovation.
Findings of this study highlight the importance of promoting gender diversity in leadership roles as a strategic lever to drive digital innovation and long-term competitiveness. By achieving a critical mass of female executives, organizations can foster inclusive decision making, mitigate managerial short-termism and enhance innovation-oriented strategies. Future research should investigate the interplay between gender diversity and digital transformation across diverse cultural and organizational contexts, further enriching our understanding of its effect on corporate governance and technological advancement.
This study reveals the significant role of female executives – when they have a significant voice on the board level – in driving digital innovation within Chinese companies. It provides a fresh perspective on how gender diversity in leadership acts as a catalyst for strategic, long-term digital transformation while curtailing the odds of managerial myopia.
