This article aims to investigate how family businesses can avoid their management structure becoming a stumbling block in the digital age. It empirically examines the impact of family management on digital transformation and its mechanisms, focusing on the mediating roles of technical personnel and internationalization, as well as the moderating effect of public policies.
Using balanced panel data from Chinese specialized, refined, differential and innovational (SRDI) enterprises from 2015 to 2022, this research investigates the impact of family management on digital transformation. The bidirectional fixed effect model was used to test hypotheses.
The findings indicate that family management hinders digital transformation, a conclusion that remains robust across various tests. Technical personnel and internationalization partially mediate the relationship between family management and digital transformation. Stronger family management correlates with fewer technicians and higher levels of internationalization, both of which slow down digital transformation. Additionally, SRDI policy significantly moderates this relationship, and greater government support and reduced financing constraints amplify the negative effect of family management on digital transformation.
This article supplements micro-level research on digital transformation from the unique perspective of family management and incorporates institutional environments into the analytical framework, which enriches socio-emotional wealth theory. It also offers theoretical insights for enterprises navigating digital transformation challenges, including managing conflicts between technology and personnel, addressing resource shortages and effectively leveraging policy assistance.
