CEOs’ Poverty Experience and Corporate Digitalization

Abstract This study delves into the intricate relationship between chief executive officers' (CEOs') experiences of poverty and the digital transformation of their firms. Employing comprehensive data collection on CEOs' birthplaces and leveraging advanced text analytics to quantify digitalization, our analysis encompasses a wide array of listed companies in China. The findings reveal that CEOs' impoverished experiences exert a detrimental influence on their firms' digital transformation efforts, primarily due to a lack of motivation and social resources necessary for such initiatives. However, this adverse effect can be ameliorated when CEOs gain access to substantial social resources in later life. Our conclusions are robust, supported by rigorous testing, and underscore not only the impact of CEOs' early-life poverty on corporate digitalization but also the potential for overcoming these challenges through the acquisition of external social resources and connections in adulthood. This study contributes significantly to existing literature and offers practical implications for enhancing corporate digital transformation strategies.