HOI research | How family firm dynamics shapes digital success
Why some family firms embrace digital change – and others fall behind
From small-town shops to global enterprises, family businesses are a pillar of the economy. While many of them feel the pressure to modernize, their journeys into the digital world can take very different paths. Why do some family firms adapt with ease while others hesitate?
That is the question this newly published study investigates by focusing on 14 multigenerational manufacturing family firms in Italy. The researchers set out to explore how internal attitudes – what they have called “dispositions” – shape the extent firms embrace digital transformation. To that extent, they conducted in-depth interviews, analyzed company records, and observed workplace practices.
Dispositions drive transformation – or block it
What they found was striking: successful digitalization is not about size, industry, or access to technology – but mindset. Indeed, a core factor at play is a firm’s willingness to embrace change, which turns out to vary a lot from one family to another.
More importantly, two clear patterns of behavior – two distinct dispositions – emerged. They either opened the door to digital innovation or quietly shut it.
“The real issue was that many had the tools – but those who had a shared mindset really mastered the digital transformation. For instance, resistance from senior family members often outweighed any digital capabilities the firms had.” points out Marco Mismetti, Assistant Professor at the House of Innovation.
How family dynamics shape the future of innovation
This research makes one thing clear: when it comes to digital transformation, the real driver isn’t technology – it’s the people behind it. In family firms, success often hinges less on having the right tools and more on who holds the power to make decisions.
The study also shows that willingness can be shaped over time – nurtured or stifled by family culture, generational shifts, and everyday choices. Within future research, cracking this “willingness puzzle” could be the key to helping more family businesses move past resistance and fully embrace innovation.
Key research findings
- Willingness-enabling dispositions boost innovation. Firms that share power, embrace younger generations, encourage digital learning, and communicate openly about technology are much more likely to adopt ambitious digital strategies.
- Willingness-suppressing dispositions hold firms back. In firms where power is tightly controlled by the older generation, where there is a reluctance to retire or share decision-making, digital transformation is minimal or avoided entirely.
- Even willing firms may struggle. Some family businesses show a strong desire to transform but are still blocked by external barriers – like a lack of digital talent, limited finances, or a market that wasn’t ready for advanced tech.
Meet the researchers
- Marco Mismetti, House of Innovation, Stockholm School of Economics
- Samuel Appleton, University of Bergamo
- Dominik Matt, Free University of Bozen-Bolzano
- Alfredo De Massis, University of Chieti-Pescara & IMD Business School
