How China's Overconfident Bosses Boost Digital Changes

China's digital evolution has been significantly impacted by an unusual trait in its managers: overconfidence. During 2011-2022, researchers noticed that top managers who were a bit too sure of themselves actually drove deeper digital transformations within their companies. The key? They invested more heavily in research and development. Surprisingly, this effect was even more prominent in private companies than in state-owned ones. These confident leaders didn't just inch forward; they made significant strides. However, it's a curious fact that policymakers might want to explore how to replicate this advantage in state-owned enterprises. So, what's the lesson here? Being overconfident isn't always a bad thing. Sometimes, it can lead to big innovations. But how can we ensure that this benefit extends to all types of companies? That's a question worth pondering. The future of China's digital landscape might just depend on it.