TMT Faultlines and Corporate Digital Transformation: The Moderating Role of Board Governance

Vollständiger Abstract

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The top management team (TMT) plays a key role in shaping corporate strategy. However, how and when TMT faultlines influence corporate digital transformation remains unclear. Drawing on the categorization–elaboration model, this study examines the nonlinear relationship between TMT faultlines and corporate digital transformation and the moderating role of board governance. Using panel data from Chinese A-share-listed manufacturing firms, the results suggest an inverted U-shaped relationship between TMT faultlines and corporate digital transformation. Board monitoring and board networking are associated with a steeper inverted U-shaped curve, whereas board advising is associated with a flatter curve. Heterogeneity analysis shows that the inverted U-shaped relationship is mainly observed in non-state-owned enterprises, younger firms, and firms with high ownership concentration. These findings extend research on faultlines, strategic leadership, and corporate governance and offer practical implications for configuring TMTs and designing board governance mechanisms to support corporate digital transformation.