This study tests the impact of family control on information technology (IT) investment and IT adoption in MSMEs in India.
This study employs a survey research design. Micro, small, and medium enterprise (MSME) owners in India were surveyed to test the impact of family control on IT investment and IT adoption.
Our empirical results show that family control — measured by family ownership, family member firm management, and/or family CEO duality — increases IT investment and IT adoption in India. Family ownership increases the chances of IT investment and IT adoption by 19.24% and 38.40%, respectively. Firm management by family members increases the chances of IT investment and IT adoption by 11.29% and 18.29%, respectively. CEO duality increases the chances of IT investment and IT adoption by 51.13% and 258%, respectively. Thus, CEO duality has a higher impact on IT investment and IT adoption than family ownership and firm management by family members.
The empirical results may be generalized only to MSMEs similar to those surveyed in this study. Additionally, this study relied on the perceptions and judgments of MSME owners.
This study contributes to the literature on the impact of family control on IT investment and IT adoption in the developing economics. This study can help scholars to develop further studies in the family control area. Our findings may help MSME owners to increase family control to survive and prosper into the future. Additionally, MSME management consultants may find the empirical results useful to provide consulting services.
