Digital Transformation in Family Firms

Appleton, Samuel and Mismetti, Marco and De Massis, Alfredo (2026) Digital Transformation in Family Firms. In: International Encyclopedia of Business Management :. Academic Press, pp. 882-889. ISBN 9780443137020 (In Press)

Abstract

The digital transformation, characterized by velocity, complexity and systemic change, is pervading societies throughout the world. This situation presents many opportunities and threats requiring firms to adapt. Financial investments, organizational support and complementary assets/capabilities are important firm requirements for adaptation. Family firms are the most common organizational form in the world, posing them to play a pivotal role in the digital transformation. Indeed, family firms possess unique attributes that can be leveraged to greatly benefit them for the digital transformation. This contribution outlines how some of the uniqueness attributes (financial preferences, specialist approaches to innovation, long-term employees and close ties to stakeholders), touching upon some of the relevant theories (Familiness, family ability-willingness paradox, family social capital, socio-emotional wealth, long-term orientation), may positively and or negatively influence family firms in the digital transformation. This contribution is relevant for scholars, policy makers and practitioners interested in family firms during the digital transformation.