Abstract:With the rapid iteration of new-generation information technology, China is accelerating the development of the digital economy and promoting the deep integration of the digital economy and the real economy to enhance the international competitiveness of digital industry clusters. In this context, digital transformation has become an important topic for the development of Chinese enterprises. As the important decision-makers of corporate strategy, the top management team will inevitably show a crucial impact on the digital transformation of the enterprises. However, there is little literature that conducts an in-depth examination of the relationship between the faultlines of top management teams and enterprises’ digital transformation. Therefore, how to promote enterprises’ digital transformation by optimizing human capital structure requires further research. Based on the upper echelons theory and by using textual analysis, listed companies’ annual reports, and the CSMAR database, this paper examines the relationship between top management team faultlines and the digital transformation of enterprises using a multiple regression model with Chinese listed companies as the research object. Empirical research has found that the strengthening of top management team faultlines has a significant role in promoting the enterprise’s digital transformation. This conclusion still holds after a series of robust tests such as the instrumental variable method, the propensity score matching method, and excluding enterprise’s strategic behaviors. Mechanism test shows that the enhanced faultlines of the top management team can help improve the level of enterprise risk-taking, produce an improvement effect on development status, and then promote the digital transformation of enterprises. At the same time, the enhanced faultlines of the top management team can effectively reduce the short-sighted behavior of management and generate the effect of optimizing decision-making, thereby empowering the digitalization of enterprises. The heterogeneity test shows that for enterprises in the mature stage, non-state-owned enterprises, enterprises with a high concentration of industries, and enterprises with relatively complete network information infrastructure in the region, the promotion effect of the faultlines of the top management team on the enterprise’s digital transformation is more significant, but this effect is not obvious in other enterprise samples. Compared with the previous literature, this article makes marginal contributions in the following three aspects. Firstly, based on the behavioral integration perspective of upper echelons theory, it explores the impact of the faultlines of the top management team on the digital transformation of enterprises from the perspective of human capital empowerment. Secondly, based on the characteristics of digital transformation and the process of team behavior integration, this article attempts to reveal the impact mechanism of top management team faultlines on enterprises’ digital transformation. Thirdly, based on industrial organization theory, this article further explores the impact of top management team faultlines on enterprises’ digital transformation at different organizational levels and explores the heterogeneous impact of top management team faultlines on enterprises’ digital transformation. The research in this paper reveals, to a certain extent, the impact mechanism of the faultlines of the top management team on the digital transformation of enterprises. It provides a new theoretical approach and empirical evidence for exploring the decision-making of digital transformation of enterprises from the perspective of the characteristics of the top management team. It also provides differentiated policy recommendations for driving corporate digital transformation from the perspective of optimizing human capital.