This paper studies the adoption of digital transformation in the S&P 500 from the period 2008-2017. We analyze company annual reports to understand how the depth and breadth of top-management team (TMT) experience lead companies to adopt digital transformation. We find that companies are more likely to adopt digital transformation if they have TMTs with heterogeneous experience. They are less likely if they have too short or too long tenured TMT’s. These relationships are moderated by industry dynamism such that that TMT experience and tenure are particularly important in highly dynamic environments. This study deepens our understanding of digital transformation as an emerging phenomenon and contributes to the theory of strategic change by elucidating how the interplay between managerial and environmental forces impedes or facilitates this emerging phenomenon. We review the implications for theory and practice.
