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Facing the increasing competition and uncertainty, when and how to improve service innovation performance with the help of digital business strategy has become an important issue for global service firms. In this study, organizational memory level and dispersion are regarded as moderating variables and market intelligence response is introduced as a mediator, aiming at clarifying the boundary conditions and mechanism of digital business strategy affecting service innovation performance.

A survey was conducted among middle and senior managers from 245 service firms in China. The data were analyzed using SPSS and Mplus software for reliability and validity analysis, hypothesis testing and robustness testing.

Digital business strategy was positively related to the service innovation performance of service firms. Market intelligence responsiveness mediated the positive effect of digital business strategy on service innovation performance of service firms. The positive effect between digital business strategy and market intelligence responsiveness was strengthened when the level and dispersion of organizational memory were moderate.

This study suggests that it is a very effective approach for service firms to initiate digital business strategy to improve service innovation performance. Furthermore, market intelligence responsiveness is crucial because it can help service firms quickly respond to market changes and adapt them accordingly. Managers of service firms should recognize that the benefits of digital business strategy are maximized only when the level and dispersion of organizational memory are moderate.

This study is the first to address the question of how and when digital business strategy drives service innovation performance in the context of digitization. In addition, this study enriches and advances organizational learning theory because it discusses the differential impact of digital business strategy on service innovation performance under varying degrees of organizational memory level and dispersion.

Drawing on upper echelons theory, the authors study how the career horizon of a CEO promotes green innovation through the incentive mechanism. Meanwhile, from the perspective of speed and amount of value realization, the authors also identify two sets of shift parameters that reduce or increase incentive gap between short-career-horizon CEOs and long-career-horizon CEOs. Specifically considering the digital trend in China and the heterogeneity of firms and industries, this study aims to examine the moderating effects of firm digitalization, industrial digital transformation, slack resources and polluting firms.

In the context of China’s transitional economy, this study uses all A-share listed companies in China from 2007 to 2021, resulting in a total of 4,286 companies with 29,310 company-year observations.

The results support the hypothesis that CEO career horizon significantly facilitates green innovation at the firm level. The positive effect is attenuated by both firm digitalization and industrial digital transformation, but is amplified by slack resources and by the polluting firms. After a series of robustness tests, the research conclusions remain valid.

To extend the upper echelons perspective of existing research into CEO−green innovation, the authors make important contributions in four ways. First, this study contributes to green innovation literature by adding an unexplored yet increasingly important managerial determinant. Second, it advances research on the role of the CEO in green innovation by revealing a new theoretical mechanism. Third, it deepens the understanding of CEO career horizon by exploring its influence on innovations in the context of corporate social responsibility (CSR). Fourth, it identifies boundary conditions that motivate CEOs in distinguishable ways, to provide a nuanced understanding of the relationship between CEO career horizon and green innovation.