Centrality in top management team networks: empowering or hindering the corporate digital transformation process?

This study examines whether top management team (TMT) networks act as an empowering force or as a wall in the corporate digital transformation (DT) process. Results show that TMT network centrality empowers DT by improving access to resources and reducing DT-related risks. This empowering effect is stronger for the DT strategy than for DT technology and DT achievements. Further analysis shows that when firms are led by manager with information technology educational backgrounds (IT manager), the empowering effect on the DT process is particularly strengthened. Conversely, managerial myopia triggers a wall effect of TMT networks on DT technology and DT achievements. This study provides valuable insights into prevalent DT challenges. It also guides firms on how to enhance the empowering effect and reduce the potential wall effect through effective management of interfirm TMT networks.