This study aims to investigate the impact and underlying mechanisms of top management team (TMT) stability on firm digital development, addressing a significant gap in the literature regarding how stable leadership shapes corporate digital transformation.
Using panel data from Chinese A-share listed firms between 2012 and 2024, this research uses theoretical analysis and empirical modeling to examine the relationship between TMT stability and digital development. The study further tests mediating and moderating mechanisms, as well as contextual heterogeneity across ownership types, industries and regions.
The results indicate that TMT stability significantly promotes firm digital development; this effect operates through two key pathways – suppressing managerial myopia and enhancing resource acquisition capabilities – and is strengthened when executives possess an information technology background or operate in regions with higher government digital attention; the influence of TMT stability varies significantly across firm ownership structures, industry attributes and regional institutional environments.
This study contributes by systematically revealing the role of TMT stability in driving digital development – a previously underexplored area. It advances understanding of the micro-level mechanisms linking leadership continuity to strategic technological adaptation, while also highlighting important boundary conditions that shape this relationship in emerging economies.
