Post by CUHK Business School

Digital expansion alone does not make a company crisis-proof. Research co-authored by Prof Li Jingyu, Assistant Professor of the Department of Management at CUHK Business School, identifies a non-linear relationship between IT portfolio diversity and organisational resilience. By tracking 2,926 listed Chinese firms, the study demonstrates that firms with moderate digital variety outperformed those with sprawling or minimal setups. Excessive technological variety creates fragmented systems that are prohibitively expensive to maintain and difficult to coordinate under intense pressure. Critical to this equation is leadership power; senior technology executives with board-level authority are better equipped to redirect resources and resolve departmental conflicts during a crisis.🌊 This governance is particularly vital in hard-hit sectors where the payoff from owning diverse tools is amplified by strong leadership. For business leaders, the message is clear: deliberately cultivate resilience by strategically aligning tool variety with empowered decision-making. Simply piling on AI—which jumped from 20% usage in 2017 to 88% in 2025, according to McKinsey & Company’s 2025 global report —is not a substitute for authoritative governance. Read the full article: https://lnkd.in/gab3_4yG Follow us for more #ChinaBusinessKnowledge #CUHKBusinessSchool #LookForward #CUHKResearch #ChinaBusinessKnowledge #BusinessEducation #InformationTechnology #ITDiversity