Gender diversity in top management and its impact on firm-level digital transformation: Evidence from China

Despite the growing consensus that gender diversity in top management is a valuable human capital resource, determining whether and how it influences firm-level digital transformation (DT) remains underexplored. Thus, using a sample of A-listed Chinese firms from 2008 to 2020, this study examines the impact of such gender diversity on firms' DT. Based on the findings, gender diversity in top management has a positive impact on firms' DT, with an effect that is more pronounced for firms in the growth lifecycle stage, firms facing greater industry dynamism or institutional gender parity, and nonstate-owned firms. Additionally, the mechanism analysis indicates that this effect is realized by improving digital innovation and alleviating financial constraints. Meanwhile, higher managerial educational level and managerial ability have synergistic effects with gender diversity in enhancing DT. Overall, this study not only contributes to the knowledge regarding the driving factors of firms’ DT, but also provides valuable insights for firms in managing DT efforts in the modern business environment.