Abstract: Finding a solution for enterprises that can’t, won’t or daren’t implement digital transformation is the key to promoting their digital transformation. Taking A-share listed companies in 2015—2021 as the research sample, this paper empirically examines the effect of director network on the level of enterprise digital transformation, the internal mechanism, and its heterogeneous performance. The study finds that director network significantly improves the level of enterprise digital transformation, and the conclusion still holds after several robustness tests; mechanism analysis shows that through its resource effect, learning effect, and governance effect, director network provides support for enterprises that can’t, won’t or daren’t implement digital transformation. Heterogeneity analysis shows that the differences in external contextual mechanisms and internal characteristics of enterprises lead to asymmetry in the effects of director networks. Further, this paper also finds that there is a peer effect of enterprise digital transformation within the same director network. This study enriches the research on the economic consequences of directors’ networks and the factors influencing the digital transformation of enterprises. It provides possible paths and entry points for improving the level of digital transformation and cracking the dilemma of digital transformation in the current digitalization context.

Key words: director network, digital transformation, resource effect, learning effect, governance effect