Digitalization in Asian family business: trends, challenges and future prospects Open Access

Over the past decade, transformative technological advancements have reshaped the global business landscape, prompting enterprises to recalibrate their operations in a digital and interconnected world (Memili et al., 2015; Tomizawa et al., 2020). This shift has been accelerated by changing consumer expectations and disruptive events, such as the COVID-19 pandemic, geopolitical tensions and natural disasters. Family businesses, which are vital to many Asian economies, face distinct challenges in the race to digitalize. Traditionally grounded in conservative structures, they are often perceived as being resistant to radical innovation. Adapting to digital transformation is essential for survival and long-term growth (Ferraro and Cristiano, 2021). Effective online strategies are now critical across industries (Martinsons et al., 2017), and the strategic use of digital tools and applications is transforming business structures, processes and competitiveness(Rossato and Castellani, 2020).

Asia’s digital economy grew substantially from US$31bn in 2015 to US$218bn in 2023 (Chiang, 2023). The region’s economic diversity, spanning developed and emerging markets, has shaped varied digital contexts. Family businesses, prevalent in Southeast Asia, India and China, and significant GDP contributors in Hong Kong, Malaysia and Singapore, remain underexplored in digital transformation research (Ho and Chalam, 2017). While recent studies explore succession and innovation (Baltazar et al., 2023), sustainability (Borre et al., 2022) and consumer behavior (Bargoni et al., 2023), the broader context of digitalization in Asian family businesses, particularly within global value chains, lacks sufficient attention (Li et al., 2020). The absence of an integrative framework limits our nuanced understanding of digital adaptation.

This study addresses these shortcomings by examining digitalization among Asian family businesses and analyzing its implications for operations and performance. To guide this investigation, we posed the following research question:

Our contributions are threefold. First, we provide a systematic review that explicitly links digitalization in Asian family businesses to institutional theory at the macro, meso and micro levels, showing how coercive, normative and cognitive pressures shape outcomes. Second, we integrate institutional theory with the dynamic capability view to offer a dual-lens framework that connects external pressures with internal adaptation processes. Third, we synthesize evidence on the drivers of digitalization, such as government policy, networks and leadership readiness, and on the impacts spanning business models, interfirm networks, gender equality and community development. Together, these contributions yield a conceptual framework and research agenda that extends the understanding of digitalization in Asian family firms.

The remainder of this paper is organized as follows: Section 2 presents a literature review and theoretical foundation, and Section 3 details the methodology used in the study. Section 4 reveals the findings, addressing the first two research questions. Section 4.1 analyzes the factors driving digitalization in Asian family firms, and Section 4.2 evaluates its impacts on these firms and their broader business ecosystem. Section 5 discusses the theoretical and practical contributions of the study. Section 6 examines the study’s limitations, with Section 6.2 addressing the third research question while identifying opportunities for future research on digitalization in Asian family businesses. Section 7 concludes the study with key insights and implications.

Digitalization has been defined in diverse ways across disciplines, reflecting its multidimensional nature. In the field of information systems, digitalization is explored through technological integration and system design (Frenzel et al., 2021), while in development economics, it is linked to improvements in product quality and production processes and to the emergence of new digital business models such as e-commerce platforms and startup ecosystems in Asia (Yoshino, 2020). Marketing research emphasizes digital capability as a strategic resource for value creation (Ritter and Pedersen, 2020). In business management, digitalization is conceptualized through frameworks that encompass digital drivers, digital maturity, strategic orientation, transformation processes and implementation practices (Schallmo and Tidd, 2021). Other scholars categorize digitalization in terms of technological and intangible enablers as well as barriers and performance impacts (Matt et al., 2023). From an organizational perspective, this involves the integration of digital technologies into operational and managerial activities, particularly in small- and medium-sized enterprises (Kraft et al., 2022). At the societal level, digitalization is seen as a transformative process that affects the socioeconomic environment through the adoption, application and utilization of digital artifacts (Gradillas and Thomas, 2023). Vial (2021) defined digital transformation as leveraging information, computing and connectivity technologies to enable new business models and value creation. In this study, we conceptualize digitalization as a multidimensional process encompassing technological, organizational and societal dimensions, spanning from initial adoption to strategic transformation, and define it as the strategic integration of digital technologies to enhance efficiency, foster innovation and transform business models.

Asia is the leader in local technology enterprises; however, digital access remains uneven (Dabla-Norris et al., 2023). Family businesses, comprising approximately 85% of Asian companies and 18% of the world’s largest family enterprises, are economically vital, but underexplored in digital transformation research (Ho and Chalam, 2017; Oinaala et al., 2025). The conceptual boundaries of this study are delineated by synthesizing diverse perspectives on digitalization within the context of Asian family businesses. We conceptualize digitalization as a multifaceted process encompassing technological, organizational and societal dimensions, spanning a continuum from initial adoption to strategic transformation. To address this research gap, our study uses institutional theory as a theoretical lens, enabling a multilevel analysis of digital transformation across the macro (national policies), meso (industry dynamics) and micro (family and firm-specific) levels. This boundary-setting approach systematically identifies factors influencing digitalization, examines whether family businesses adopt proactive or reactive strategies and develops a conceptual framework that illuminates their digital transformation pathways.

Institutional theory offers a robust framework for analyzing how external environments shape organizational behavior and strategic decisions. It identifies three institutional pressures: coercive, from formal rules; normative, societal expectations; and cultural-cognitive, from shared beliefs (Scott, 2014). These pressures drive organizations to adopt new practices for performance and legitimacy (Dimaggio and Powell, 2004).

This study applies institutional theory to examine digitalization in Asian family businesses at three levels. At the macro level, coercive pressures such as national digitalization policies and the COVID-19 pandemic compel firms to adopt digital technologies. At the meso level, industry standards and competition create normative pressure and drive transformation in business operations. At the micro level, cultural-cognitive factors, including founder attitudes and leadership styles, influence digital engagement. This multilevel analysis elucidates the external and internal factors that shape digital adoption in Asian family businesses.

Beyond explaining drivers, this review explores digitalization outcomes such as evolved business models, participation in knowledge networks and integration of information and communication technologies. By leveraging institutional theory, this study provides a comprehensive understanding of how institutional pressures facilitate or constrain digital transformation in Asian family businesses.

This study uses a domain-based systematic literature review (SLR) using a framework-driven approach to identify relevant empirical studies, synthesize evidence-based themes in family business research and develop an integrated perspective to address complex research questions that individual studies alone cannot answer (Snyder, 2019). SLR provides a structured and transparent synthesis of existing knowledge, enabling the identification of theoretical, conceptual, contextual and methodological gaps in the literature (Tranfield et al., 2003). SLRs have been widely conducted in the fields of business and management, including international marketing (Battisti et al., 2021), entrepreneurial ecosystems (Bertello et al., 2022) and human resource management (Chatterjee et al., 2023). To ensure comprehensive and up-to-date coverage, the review draws on four major academic databases: ScienceDirect, ProQuest, EBSCO and Web of Science, with no restrictions on publication date.

This study was motivated by two gaps. First, many reviews rely on a single database; we searched four databases to improve coverage and follow comprehensive, unbiased and transparent procedures (Forliano et al., 2025), thereby enriching the understanding of family businesses in Asia through a wider-scope SLR (Anwar, 2024). Second, bibliometric reviews often apply minimum citation thresholds, emphasize co-citation or network visualizations or limit analyses to quantitative techniques; our SLR instead synthesizes the substantive literature on the digitalization of Asian family businesses without citation cutoffs and with qualitative integration (Linnenluecke et al., 2020).

The review process followed the preferred reporting items for systematic reviews and meta-analyses (PRISMA) protocol, which guides the selection of relevant literature in the business domain with a focus on family businesses. PRISMA comprises four stages: identification, screening, eligibility and inclusion. It also follows the latest PRISMA checklist (Page et al., 2021), which includes seven key components: the title, abstract, introduction, methods, results, discussion and other relevant information. A detailed review of this process is presented in Figure 1. This approach allowed for a comprehensive yet methodologically rigorous analysis. While the internet’s inception was acknowledged in 2003, no time restrictions were imposed.

The first step, identification, was to perform keyword searches across four databases. Based on our focus, we compiled a set of specific keywords related to “family business” AND “Asia” AND “digitalization.” These terms were combined into a search string used across the four research databases. The search string was required to appear in the abstract, title or listed keywords of the articles. Initial search results for 31,984 articles. After removing duplications or irrelevant papers, 31,748 articles were identified.

The second step involved screening a semifinal list of articles based on titles, abstracts and keywords, resulting in 236 articles across 32 keyword combinations ( Appendix). After removing duplicates and irrelevant studies, a total of 134 articles remained. Third, full-text reviews were conducted to assess eligibility, narrowing the list to 102 articles. The final step applied specific inclusion criteria to ensure alignment with the research questions. Only peer-reviewed journal articles published in English were included to maintain scientific rigor; books, book chapters and conference proceedings were excluded to ensure consistency and focus. Studies were selected only if they investigated family businesses in Asia, either as sample firms or in the context of the study. A total of 46 articles were included in the final review.

Each article was reviewed, and the following information was extracted and documented:

• author(s);

• publication year;

• title and abstract;

• keywords;

• journal;

• study location;

• industry;

• Firm size;

• methods;

• results or key findings; and

• limitations and future directions.

Two researchers independently coded and reviewed the data. An Excel spreadsheet was created based on this extraction, including:

• factors;

• functional level;

• digitalized outcomes; and

• Future studies.

The 46 selected articles examined Asian family businesses across a diverse range of industries, including agriculture, logistics, pharmaceuticals, tourism and hospitality, textiles and fashion, construction, fisheries, information and communication technology (ICT), handicrafts and various service sectors (e.g. professional services, digital media, publishing and entertainment). Since 2017, there has been a noticeable rise in research on family business digitalization in Asia, reflecting the growing scholarly interest in this area. Figure 2 presents an overview of journal publications, with 2022 marking the peak year, accounting for 16 of the 46 articles in Figure 3. Methodologically, 22 studies used qualitative approaches, 21 used quantitative methods and 3 adopted mixed methods, as shown in Figure 4. The geographical scope of the research ranged from single-country studies to analyses of up to 25 Asian nations.

This section addresses the first and second research questions: (1) What factors influence the digitalization of Asian family firms? (2) How does the digitalization of Asian family firms impact these firms and their broader business environment? The identified factors and their impacts are organized according to three institutional levels: macro, meso and micro. Table 1 presents a summary of the key findings, followed by detailed insights drawn from the reviewed articles.

At the macro level, government policies, regulatory frameworks and external conditions such as the COVID-19 pandemic significantly influence digitalization in Asian family businesses (Dixon et al., 2021; Kusumawardhani et al., 2022). Governments support digital transformation through the IT infrastructure, soft loans and enhanced access to technology (Hooi, 2022). For example, China’s Taobao platform engages rural family businesses to alleviate poverty (Liu, 2022; Yu and Cui, 2019; Zhang, 2021). Governments also provide training on digital literacy, technical skills and management (Aminullah et al., 2022). However, challenges include program discontinuity, limited reach and inadequate support for micro-small-medium enterprises (MSMEs). The informal sector’s unregulated digital applications underscore the need for formalization (Williams and Horodnic, 2017). Despite encouragement, many family business leaders prioritize modernizing their business image over structural transformation, with negative digitalization experiences further impeding their progress (Martinsons et al., 2017; Roy and Mohapatra, 2023).

Digital literacy is critical to innovation in Asian family businesses. Despite the widespread adoption of e-commerce in India, handicraft artisans often lack digital skills (Roy and Mohapatra, 2023). A case study in Indonesia highlighted MSMEs’ challenges faced by MSMEs, including limited digital human capital, socio-technological adaptation and insufficient government support for digital transformation (Aminullah et al., 2022).

At the meso level, industry trends and business networks shape digitalization in Asian family businesses. Collaborative relationships, including partnerships and supply chains, drive the integration of digital technologies to align with industrial development and networking opportunities. Digital networks enhance global market connections, boost regional influence and support international expansion, as can be seen in China’s digital applications research and technology and Taiwan’s cultural industry (Chen and Jaw, 2009; Dahles, 2006).

Digitalization fosters competitive advantages through increased access to digital products, services and platforms. Long-established firms develop digital skills to adapt to technological change and implement effective strategies (Rossato and Castellani, 2020). In Taiwan, the adoption of advanced technology has enhanced creativity and competitiveness in industries such as video and film production (Chen and Jaw, 2009). To sustain innovation, family businesses must leverage technology, develop dynamic global capabilities and create value. Rashid and Ratten (2020) highlighted the challenges in adapting to rapidly evolving digital markets, emphasizing the need for a digital mindset, investment in new technologies and AI-enabled brand identities driven by entrepreneurial leaders to maximize intellectual assets and maintain competitiveness.

At the micro level, internal dynamics, particularly new-generation leaders, drive digitalization in Asian family businesses. Technological expertise and openness to change shape digital strategies (Kyzy, 2022). Pyramidal ownership structures, common in Asian firms, often grant control beyond ownership stakes, but can hinder transformation when managers resist change or fail to engage employees (Amit et al., 2015; Martinsons et al., 2017). Operational inefficiencies from outdated technologies and the lack of standardized procedures impede progress (Qureshi et al., 2021). Negative experiences, especially among artisans, deter the adoption of new tools (Roy and Mohapatra, 2023), particularly for older generations who lack digital expertise (Khalil and Nahid, 2022).

Next-generation leaders with diverse education and international exposure embrace innovations such as blockchain, expanding market reach and profitability through digital platforms (Kyzy, 2022; Xavier and Gan, 2022; Yu and Cui, 2019). Global networking enhances customer and collaborator connections (Zaefarian et al., 2016; Zhou et al., 2019). In developing nations, digitalization helps overcome economic limitations, for example, family-owned tourism firms leverage digital marketing for direct customer engagement (Deb et al., 2022). Indian family firms align with digitalization by investing in training and technology to foster innovation (Chatterjee et al., 2023). Strengthening networking skills remains crucial for identifying partners and opportunities in foreign markets, thereby facilitating market entry.

Existing literature shows that family businesses across Asia face both opportunities and challenges in a rapidly expanding digital market (Aminullah et al., 2022; Rashid and Ratten, 2020). For instance, in Japan, remote agricultural family farms struggle with e-commerce adoption and transformation into e-enterprises (Chung et al., 2021). Rapid technological advancements have intensified competition and created internal and external threats to these businesses (Qureshi et al., 2021). However, these challenges present opportunities for growth and the transition to more sustainable models by adopting effective and efficient technology-driven business practices.

Digital technologies are transforming marketing in Asian family firms with tools such as search engine optimization, e-mail marketing and social media to enhance consumer insights and product promotion. In China, e-commerce and m-commerce improve efficiency through real-time stakeholder interaction (Hooi, 2022; Yu and Cui, 2019). Singapore demonstrated strong e-commerce and ICT adoption in home-based businesses (Nathan et al., 2019), whereas India, Indonesia and Japan leveraged WhatsApp and Facebook for targeted advertising (Chung et al., 2021; Ghosal et al., 2020; Kusumawardhani et al., 2022). Misuse, such as neglecting privacy, risks brand damage. AI, machine learning and Internet of Things (IoT) strengthen insights but require trust-building strategies (Rashid and Ratten, 2020).

Digital capabilities present both opportunities and challenges, underscoring the human factors in a successful transformation. Indonesian firms readily adopt digital tools (Aminullah et al., 2022), while Taijen faces power shifts from centralized data control (Chang, 2012). Shanghai’s Gamma Consulting failed because of its weak employee engagement and vision (Martinsons et al., 2017). In Thailand, digital tools support SME succession contingent on leadership intent (Somboonvechakarn et al., 2022). Overcoming such challenges requires diversity, collaboration and shared intelligence, as people-centered approaches remain vital (Abdulmuhsin and Tarhini, 2022; Rashid and Ratten, 2020).

Although research on the digitalization of Asian family enterprises is still limited, its impact on production, finance and accounting is increasingly evident. In Kuwait City, robotics adoption has significantly enhanced production efficiency, while digital tools such as Edfali streamlined payment processes and Pastel software support reliable accounting control (Saleh, 2020). In contrast, technological inefficiencies in Pakistan have contributed to business failure and bankruptcy (Qureshi et al., 2021).

Asian family businesses, known for their long-term orientation and risk aversion, strategically pursue digitalization to improve performance and reduce risks in international markets. Digital capabilities positively influence the link between internationalization intentions and outcomes (Chatterjee et al., 2023). While concerns over control can hinder international expansion, factors such as family experience, culture and forward-looking attitudes can enhance international ambitions. Strong digitalization capacity improves performance across revenue, profitability, supply chains, knowledge management and global talent recruitment. Prior knowledge and networks contribute to resilience and competitiveness (Zaefarian et al., 2016).

Family firms have embraced technologies such as blockchain, inspiring younger generations to adopt censorship-free business models. In Kyrgyzstan, digitalization has enabled family businesses to seize independent opportunities (Kyzy, 2022). New family business diversification follows three stages: appetizing, baby stepping and entrepreneurial identity restructuring, often through trial and error by second-generation entrepreneurs. Younger firms are typically more innovative than older ones are because of their adaptability, ease of learning and reduced internal resistance (Singh and Kota, 2017). Nathan et al. (2019) highlighted that home-based digital businesses drive competitive digitalization by leveraging e-commerce to overcome geographical and temporal barriers and enhance connectivity between companies and consumers.

Leveraging digital tools enables family businesses to reach new customer segments and gain a competitive edge by building durable partnerships. Nanofilm Technologies International (NTI) in Singapore, for example, has sustained long-term ties with clients, such as Fuji Xerox, Nikon, Canon, Microsoft and Huawei. NTI expanded into China by leading the Singaporean and Chinese overseas business association, reflecting the Chinese business-tied culture and Guanxi, which facilitated market penetration. Advanced technology also enhances family businesses’ appeal to global investors, thereby increasing their market potential and attractiveness (Liu and Goh, 2022). Participation in digital business networks provides access to global financial resources. Efficient connections within these networks, as noted by Chung and Yuen (2003), improve funding opportunities, whereas links to investors are critical for cross-border investments (Dahles, 2006).

Digital tools have transformed family firms’ communication and management. Martinsons et al. (2017) show that businesses employ information system software to train staff, communicate with partners and address client issues and that digital channels such as QQ chat are often more convenient than internal knowledge management systems. Home-based businesses in Asia are more likely to adopt e-commerce when supported by ICT knowledge, risk perceptions and online trust (Nathan et al., 2019). These businesses range from affiliated marketing and direct sales to website design and blogging. Challenges remain for knowledge networks in family firms, including limited incentives, low employee engagement, reluctance to share knowledge systematically and difficulties in using knowledge-management software.

Digitalization enables family businesses to access external resources, expand networks and adapt to global trends, particularly through younger generations who acquire advanced e-commerce knowledge via overseas education and share it within their communities. This dynamic has fueled the growth of initiatives, such as China’s Taobao Villages, and strengthened community learning (Chung et al., 2021; Hooi, 2022; Liu, 2022; Zhang et al., 2023). Digital tools also help family firms broaden their reach and uphold social values. For example, a Malaysian newspaper family business emphasizes editorial neutrality and community trust through digital Corporate Social Responsibility (CSR) initiatives that align with family virtues (Yusof et al., 2014).

Taobao Villages in China have empowered women, encouraged migrant returns and supported rural e-Commerce (Liu, 2022; Yu and Cui, 2019; Zhang, 2021). Many young rural women now achieve financial independence by co-leading online ventures. However, digitalization can also reinforce social inequalities. Middle-aged women often struggle to compete with younger entrepreneurs, and patriarchal norms continue to limit gender empowerment, despite increased income and business activities (Yu and Cui, 2019).

Digitalization in Asian family businesses is driven by external institutional pressures and internal adaptive processes. Prior research has often examined these issues in isolation, limiting the comprehensive understanding of digital transformation (Chaudhuri et al., 2022; Rashid and Ratten, 2020). To address this, we propose a conceptual framework integrating institutional theory and the dynamic capabilities view (DCV) for a multilevel perspective on digitalization.

This framework combines institutional theory and DCV to analyze digitalization at the macro, meso and micro levels (Dimaggio and Powell, 2004; Teece et al., 1997). It explores how coercive, normative and cognitive institutional pressures interact with internal processes, such as sensing, seizing and transforming. Unlike studies focusing on single levels, this study emphasizes family-specific dynamics, such as leadership readiness and control structures (Arzubiaga, De Massis et al., 2021; Liu and Goh, 2022). The framework also highlights outcomes, such as gender equality and social responsibility (Liu et al., 2024; Phonthanukitithaworn et al., 2022). Mapping these interactions provides a theoretically grounded structure to guide analyses of institutional pressures and internal adaptation, offering a roadmap for researchers to study how family businesses in emerging markets navigate digital transformation through dynamic capability development (Figure 5).

This review contributes a nuanced institutional perspective by examining coercive, normative, social and cultural-cognitive pressures on digitalization in Asian family businesses across macro, meso and micro levels. At the macro level, national policies, government programs and the COVID-19 pandemic have driven digital engagement. At the meso level, industry norms and competitive pressures shape how firms adopt digital technologies. At the micro level, decision-makers’ attitudes, leadership styles, generational dynamics and changing customer behaviors influence their internal responses to institutional shifts. Grounded in institutional theory (Dimaggio and Powell, 2004; Scott, 2014), this approach extends its application by illustrating how multilevel pressures shape digitalization outcomes in family firms. The findings enhance the understanding of the external environment impacting these businesses, demonstrating how digitalization fosters business renewal and contributes to social and economic environments. Outcomes, such as ICT adoption, new business models and participation in knowledge and business networks, underscore the broader developmental impact of digitally engaged family firms.

This review integrates institutional theory with DCV to examine the internal processes that enable Asian family businesses to address digital pressures. The DCV perspective includes survival needs (Rashid and Ratten, 2020), managerial system transfers, entrepreneurial intentions (Chaudhuri et al., 2022) and fostering innovation (Chen and Jaw, 2009). Chatterjee et al. (2022) link DCV to risk-taking and proactiveness in family firms’ internationalization. Digitalization trends and resource access facilitate product and market diversification (Rashid and Ratten, 2020; Zaefarian et al., 2016). Government initiatives, such as infrastructure and digital training, support this shift, although their effectiveness varies due to poor contextual alignment (Williams and Horodnic, 2017). Limited digital literacy and negative experiences constrain opportunity sensing (Roy and Mohapatra, 2023), but younger generations are more innovative, although they are influenced by senior family members. Some successors launched digitally focused parallel ventures before integration. These findings highlight risk-taking and proactiveness in seizing opportunities, although high financial slack can hinder internationalization (Xu and Hitt, 2020).

The ability of Asian family firms to seize digital opportunities hinges on mobilizing resources, such as advanced technologies, brand equity, entrepreneurial orientation, flexible teams and culturally embedded knowledge. Younger firms often show greater innovation and international ambition (Singh and Kota, 2017). Digitalization fosters resource sustainability and open innovation, enabling new business models and resilience (Abdulmuhsin and Tarhini, 2022; Phonthanukitithaworn et al., 2022). However, disparities in willingness and capacity persist and are influenced by cultural norms, generational divides and strategic concerns. Digital transformation also requires the restructuring of organizational models. Asian family businesses are increasingly including nonfamily managers, shifting from traditional governance (Liu and Wang, 2023; Liu and Goh, 2022). However, transformation varies: some firms adopt digital tools to reinforce family control (Arzubiaga, Diaz-Moriana et al., 2021), while others resist change and fear the loss of authority (Chang, 2012). These findings underscore the critical role of internal capabilities in navigating the institutional complexities of digitalization.

Governments play a crucial role in advancing MSME digitalization. Investment in IT infrastructure and capital enables the effective use of digital tools, while initiatives such as China’s Taobao Villages illustrate how support can foster entrepreneurship and rural development. Such models can guide other governments in promoting digital participation among MSMEs and family firms. Key measures for strengthening competitiveness include internet-enabled policies and digital literacy education (Roy and Mohapatra, 2023). Notably, China’s recent Private Economy Promotion Law (2025) reflects growing institutional support for entrepreneurship and highlights the importance of policy-driven strategies (Cash and Yao, 2024).

Digitalization has expanded traditional networks in Asian family businesses shaped by Confucian values, enhancing access to transnational resources (Fang et al., 2021; Au, 2022). Digital guanxi facilitates nonfamily CEO recruitment and resource access by leveraging often-invisible family-centered connections (Hung and Tseng, 2017; Liu and Wang, 2023). Succession, critical in Asian family firms due to strong “familiness,” influences firm behavior, systems and performance (Fang et al., 2021; Luong et al., 2024). Generational transitions foster innovation and digital impact. Digitalizing knowledge management preserves tacit knowledge and social capital, thus supporting ownership transitions and growth (Fang et al., 2021). Less formal HR practices limit the attraction of professionals, but social media job postings and training for Industry 4.0 enhance innovation and engagement (Fang et al., 2021). Digitalization poses HR challenges and requires an environment that promotes diversity, cooperation and shared values.

In Asian family businesses, digitalization enhances social contributions and community engagement. Unlike many Western contexts, family ownership in Asia often aligns positively with charitable activities shaped by institutional environments and social norms (Campopiano and De Massis, 2015; Dou and Su, 2014; El-Kassar et al., 2018). Digital tools and platforms broaden outreach, strengthen employer branding and enable more effective societal initiatives. Our review shows that digitalization expands opportunities for female entrepreneurs (Kusumawardhani et al., 2022; Yu and Cui, 2019) while reinforcing owners’ responsibility toward their communities (Yusof et al., 2014). Although socioemotional wealth is often secondary to economic goals (Fang et al., 2021), digital transformation creates new pathways for family firms to contribute to social development.

This study has several limitations. First, the literature was drawn from four major academic databases, ScienceDirect, ProQuest, Web of Science and EBSCO, chosen for their comprehensive coverage of high-quality, peer-reviewed management research. While this ensured methodological rigor, it may have omitted relevant studies in other databases or regional journals not indexed in these platforms, such as practice-oriented reports or local-language publications on Asian family businesses. Future research could expand to include databases like SCOPUS or region-specific repositories to capture a broader, culturally diverse literature.

Second, manual coding and thematic analysis, supported by systematic routines and cross-checks among co-authors, are susceptible to interpretive bias. Despite efforts to reduce subjectivity through transparent protocols, thematic synthesis reflects researchers’ judgments. Different teams might emphasize alternative themes from the same literature. To improve reliability, future studies could integrate manual coding with computer-assisted content analysis or machine-learning-based text-mining to triangulate findings and identify patterns in large data sets, such as using AI-assisted querying of Scopus to analyze influential Asian family business papers.

Finally, the review’s focus on institutional theory and DCV may have limited exploration of other perspectives, such as socioemotional wealth or stewardship theory. Future meta-analyses could incorporate multiple theoretical frameworks to offer a more comprehensive understanding of digitalization in family businesses across diverse socioeconomic contexts.

To deepen our understanding of digital transformation in Asian family businesses, future research should be structured across three levels: macro, meso and micro, reflecting institutional forces, organizational dynamics and individual capabilities. The integration of institutional theory and DCV offers a robust framework to explore how formal and informal institutions, social capital and adaptive processes jointly shape digitalization in family firms.

At the macro level, government support is a prominent factor, particularly in improving the IT infrastructure and providing financial incentives for micro-family businesses in rural regions. This support has notably enhanced entrepreneurs’ economic conditions. However, further investigation is warranted to assess its long-term impact.

Given that most articles on government support were published between 2020 and 2024, during the height of the COVID-19 pandemic, future studies should critically analyze policy effectiveness before and after the pandemic, as the urgency of digital transition may have led to context-specific interventions. Additionally, it is essential to examine how traditional markets have adjusted as countries have returned to their prepandemic routines. Comparative studies should identify the best practices from Southeast Asian countries that have implemented successful MSME digital support programs, especially considering the rapid economic growth of the region.

China’s Private Economy Promotion Law 2025 may play a pivotal role in expanding digital business among MSMEs by enabling access to digital infrastructure and supporting policies. The rise of initiatives, such as Taobao Villages, illustrates how younger generations equipped with digital knowledge are driving rural e-commerce and community learning (Chung et al., 2021; Hooi, 2022; Liu, 2022; Zhang et al., 2023). However, further research is needed to understand how such legal frameworks influence MSME digital adoption and address persistent social inequality (Yu and Cui, 2019).

A multicultural comparative approach is necessary to explore the legislative differences in online channels, technology adoption, and digital consumption across diverse national contexts. Such research contributes to a nuanced understanding of institutional diversity in shaping the pace and patterns of digitalization in family firms.

Further investigation into the digitalization of Asian family businesses could address the following critical research questions at the macrolevel:

The concept of Guanxi, defined as “drawing on connections or networks to secure favors in personal or business relations” (Luo and Chen, 1997, p. 1), along with the Bamboo Network, plays a vital role in shaping business practices in Asia, particularly in China. However, existing research has not sufficiently explored how digital platforms have facilitated these networks or led to the emergence of new digital ecosystems. Moreover, digital transition has opened new pathways for nonfamily members, particularly younger managers, to take on leadership roles in micro- and small-sized family businesses. This trend may challenge traditional pyramidal ownership structures and catalyze broader organizational transformations. Future research should explore how power dynamics and decision-making patterns evolve in digitally transformed family firms.

While prior studies have focused on isolated business functions, integrative models are required to examine immersive technology adoption across ecosystems. Further research should investigate how smart algorithms and AI-driven processes are shared within industrial clusters (Dumitriu and Popescu, 2020; Tanase Cosmin, 2018). Such insights could shed light on how digitally enabled collaboration enhances responsiveness, personalization and competitive advantage in increasingly interconnected business environments.

Further investigation into the digitalization of Asian family businesses could address the following critical research questions at the meso level:

Cultural factors, including Confucianism, collectivism, guanxi and economic pressures, shape the work-life balance in Asian family firms, differing from Western contexts (Le et al., 2020). However, empirical evidence on the impact of digitalization on employee well-being remains scarce (Christensen-Salem et al., 2021). Furthermore, limited research has explored the impact of digitalization on traditional industries such as handicrafts and agriculture, particularly regarding workplace well-being (Liu et al., 2024).

Another critical area for future research is the intergenerational digital divide, in which younger family members tend to embrace digital tools, whereas older employees may struggle to adapt to digital skill requirements. Investigating how family business owners identify and overcome these challenges has practical implications for succession planning and strategic renewal. Additionally, understanding how digital transformation reshapes individual roles and learning behaviors provides valuable insights into how dynamic capabilities emerge and scale within family firms.

Further investigation into the digitalization of Asian family businesses could address the following critical research questions at the micro level:

This SLR of 46 studies examines the internal and external contexts shaping digitalization in Asian family businesses. Although digital adoption is already underway in some firms, the COVID-19 pandemic has served as a critical catalyst, accelerating the need for digital transformation. Government support, particularly in developing IT infrastructure, plays a significant role, along with the influence of international markets and embedded relational networks. Digitalization has enhanced business models, fostering greater resilience, sustainability, competitiveness and innovation. However, many family-owned firms continue to exhibit caution, particularly because of concerns over the loss of control and shifts in decision-making authority. Importantly, the findings also suggest that digitalization in Asian family businesses presents emerging opportunities to advance gender equality, an area warranting deeper investigation in future research.

32 keywords of Stage 2: Screening among four databases

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