Board IT Competence and Firm Performance

In this study, we theorize a new construct ‘board IT competence’, and show that it is systematically related to firm performance. Using a sample of 32,856 firm-years observations over the period of the year 2000 to 2018, our study shows that board IT competence is positively associated with firm performance. Moreover, the findings suggest that firm performance is not only higher, but also more consistent across time. While many firms find it difficult to identify the right sources in developing IT competence at the board level, our study suggests that a board composition that promotes the representation of directors with relevant IT competencies can offer valuable insights to mobilize and reconfigure IT asset to create firm value.