The Impact of the CEO’s Personality Traits on Digital Orientation in Firms
Abstract (300 words maximum)
This study explores the impact of the CEO’s Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism on firms' digital orientation. Using the Linguistic Inquiry and Word Count (LIWC) tool, we analyze shareholder letters to identify the predominant personality traits of key decision-makers within firms. These traits are then regressed with the firms' digital adoption strategies and overall technology orientation. We propose that higher levels of Openness and Extraversion among decision-makers will increase the digital orientation of the firm. Individuals are open to new experiences and those who are more outgoing and energetic tend to be more inclined toward adopting digital technologies. Conversely, higher levels of Neuroticism present barriers to digital adoption, as decision-makers exhibiting higher levels of Neuroticism are more resistant to change and less willing to embrace new technologies. We have collected data for 1250 firms and are in the process of analyzing this data. This analysis offers valuable insights for organizational leaders and policymakers aiming to enhance digital integration within firms. By understanding the psychological drivers behind digital orientation, the research provides a foundation for developing more effective and tailored strategies to foster a technology-driven business environment, supporting the advancement of the digital economy.
Academic department under which the project should be listed
CCOB - Marketing & Professional Sales
Primary Investigator (PI) Name
Prachi Gala
The Impact of the CEO’s Personality Traits on Digital Orientation in Firms
This study explores the impact of the CEO’s Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism on firms' digital orientation. Using the Linguistic Inquiry and Word Count (LIWC) tool, we analyze shareholder letters to identify the predominant personality traits of key decision-makers within firms. These traits are then regressed with the firms' digital adoption strategies and overall technology orientation. We propose that higher levels of Openness and Extraversion among decision-makers will increase the digital orientation of the firm. Individuals are open to new experiences and those who are more outgoing and energetic tend to be more inclined toward adopting digital technologies. Conversely, higher levels of Neuroticism present barriers to digital adoption, as decision-makers exhibiting higher levels of Neuroticism are more resistant to change and less willing to embrace new technologies. We have collected data for 1250 firms and are in the process of analyzing this data. This analysis offers valuable insights for organizational leaders and policymakers aiming to enhance digital integration within firms. By understanding the psychological drivers behind digital orientation, the research provides a foundation for developing more effective and tailored strategies to foster a technology-driven business environment, supporting the advancement of the digital economy.