Yep; though enough time working for companies tends to instill some knowledge and understanding of the business side of things, and as long as understanding of the business correlates with their own influence it tends to work out okay.
Management is weird in that understanding of the tech side of things doesn't correlate with influence.
I have encountered technical managers who were not good, for various reasons.
I think having a technical background is always a benefit, HOWEVER, it is neither necessary nor sufficient for being a good manager.