Understanding the drivers and barriers of digital transformation in family firms

The strong global presence of family businesses makes them highly relevant in the global economy. While the concept of digitalization is gaining momentum as a major source of competitive advantage in manufacturing companies, the digitalization trend has been largely overlooked in the context of family firms. Extant literature tends to overlook the heterogeneity of innovation in family firms, especially when it comes to its facilitators and implementation barriers. Therefore, this paper seeks to examine the drivers and barriers of digital technologies’ adoption in family businesses. Considering the exploratory purpose of the research, a multiple case study approach was adopted. Data were collected through semi-structured interviews with family and non-family managers in 9 family firms leading the digital transformation. Based on within-case and cross-case analyses, the results suggest that the need to support management activities, to meet customer expectations, and the commitment of family members to digital transformation are the main enabling forces in the analyzed companies. Consistent with the existing literature on digitalization, some of the most relevant challenges identified by family businesses are lack of skilled workforce, resistance to change, and cybersecurity concerns. The paper contributes to the body of knowledge as the specific characteristics of family businesses could provide an advantage in decision-making towards an effective implementation of digital technologies in manufacturing family firms. In addition, the findings present several strategies for overcoming the barriers identified in the interviews that may be useful to practitioners.