CEO Equity Incentives and Digital Transformation Performance: Resource Misallocation Risk Through the Lens of Dynamic Capabilities Theory

DOI: https://doi.org/10.62517/jse.202511109

Author(s)

Zheng Chaoliang1,2, Gelegjamts Adilbish1,*, Chen Shuyang2

Affiliation(s)

1Graduate University of Mongolia, UlaanBaatar, Mongolia 2Guangzhou Huashang College, Guangzhou,China *Corresponding author

Abstract

In the wave of enterprise digital transformation, CEO equity incentives are widely used to promote the transformation process. However, this measure may bring the risk of resource mismatch. Based on the dynamic capability theory, this paper takes the listed companies on the Shanghai and Shenzhen A-share markets from 2015 to 2023 as samples and empirically explores the relationship between CEO equity incentives and the risk of resource mismatch in digital transformation. The study finds that there is an inverted U-shaped relationship between CEO equity incentives and the risk of resource mismatch; dynamic capabilities play a partial mediating role in this relationship; and the investment in technological innovation and the degree of market competition respectively moderate the relationships between CEO equity incentives and dynamic capabilities, and between dynamic capabilities and the risk of resource mismatch. This research provides a theoretical basis and practical guidance for enterprises to rationally design CEO equity incentive plans and reduce the risk of resource mismatch in digital transformation.

Keywords

CEO Equity Incentives; Digital Transformation; Risk of Resource Mismatch; Dynamic Capability Theory

References

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