Unpacking willingness in family firms facing the digital transformation

Abstract

Abstract Digital transformation introduces a new set of parameters for firm innovation. Existing literature has found that family firms vary on their willingness to innovate. However, explanations of the factors that lead to a family firm’s (un)willingness to act remain scarce. Even more scarce are studies exploring the family firm’s (un)willingness in the digital transformation. The digital transformation is a promising environmental stimulus to unpack family firm (un)willingness due to its disruptive nature. This research uses a comparative multiple case study of 14 manufacturing family firms. The novel findings identify a variety of dispositions that can be divided into willingness-enabling and willingness-suppressing . Willingness affects how family firms potentially (do not) take advantage of the opportunities provided by the digital transformation. The contributions are twofold. First, the importance of considering the heterogeneity of family firms’ willingness toward digital transformation is highlighted. Second, by identifying the role of dispositions and related mechanisms we unpack the heterogeneity of the willingness. In sum, we provide a much-needed explanation of family firms in the digital transformation.

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