Unlocking the moderating role of CEO external directorships: impact on blockchain investment and market value

Purpose – Despite growing research on blockchain value, little is known about the role of CEOs in shaping these outcomes. This study examines whether CEO external directorships influence market reactions to blockchain investment announcements and how adoption strategy and application type condition this relationship through interaction effect. Design/methodology/approach – We conduct an event study of 200 blockchain-related announcements by 138 U.S. public firms and use regression analyses to assess the effects of CEO external directorships, adoption strategy and application type. Findings – CEO external directorships positively affect market responses to blockchain investments, with stronger effects for collaborative initiatives and financial applications. The results highlight the contingent value of CEO external social capital in complex IT investment decisions. Practical implications – CEO external board ties can be a strategic asset in navigating regulatory, collaborative and technological complexities in blockchain projects. Boards and investors may consider executive network capital when evaluating leadership and strategic IT decisions. Originality/value – This study offers one of the first pieces of empirical evidence on how CEO external directorships influence market reactions to blockchain investments. More importantly, it extends social capital, signaling and governance theories by showing that in blockchain investment contexts – characterized by heightened inter-organizational coordination, regulatory scrutiny and interpretive uncertainty – CEO external directorships function as context-activated social capital, whose value depends on adoption strategy and application type rather than being universally beneficial.