Digital innovation differs from traditional radical innovation in several ways: it has unclear boundaries, tends to continue after its launch, requires a smooth transition, the contribution of heterogeneous individuals, distributed processes and overcoming silo thinking. Following the upper echelon theory, which states that CEOs shape innovation, our study shows that higher levels of education inhibit digital innovation, while greater digital expertise increases digital innovation. We also reveal that CEO narcissism has a negative moderating effect and management innovation has a positive moderating effect. In summary, our results suggest that digital innovation requires CEOs with more digital expertise, low narcissism and high management innovation.
