Impact of CEO Education and Age on IT Capabilities of Private Family Firms: Moderating Role of CEO Family Status and Moderated-Moderation of CEO Perception

Abstract

Information Technology (IT) capabilities are the foundation or cornerstone for firms’ ability to adapt to technological changes in this rapidly changing business environment. Drawing upon the Upper Echelon Theory (UET), this study investigates the impact of CEO characteristics—specifically education and age—on IT capabilities in private family firms, considering the moderating effects of CEO family status (non-family CEO) and the moderated-moderation of CEO perception of the business. Using survey data from 608 private family firms in Belgium, our findings indicate that CEO education positively and CEO age negatively affect IT capability development. These effects are significantly moderated by CEO family status, with non-family CEOs showing a stronger positive relationship between education and IT capabilities. Furthermore, this moderated relationship is amplified when CEOs perceive their business as a non-family firm. Our results suggest that family CEOs face a "mixed gamble" in IT capability decisions, balancing economic performance against non-economic goals tied to social emotional wealth (SEW). This study advances the literature by integrating the mixed-gamble perspective into the upper echelons theory. It offers novel insights into how leadership and their perception influence the development of IT capabilities in family firms.