Family-owned manufacturing businesses (F-OMBs) often stick to traditional practices, resisting new technologies, which hinders descendant entrepreneurs' digital transformation efforts. How descendant entrepreneurs interpret conflicting evidence, perspectives and opinions, and their adaptability (active open-minded thinking) remains unanswered. This research examines the ways in which open-minded thinking promotes digital transformation through AI self-competency and Industry 5.0 (I-5.0) capabilities, taking into account the impact of risk proclivity and technology turbulence.
A cross-sectional survey was carried out to gather data from 279 descendant entrepreneurs serving as chairpersons or directors of F-OMB in Malaysia. PLS-SEM was utilized for analysis.
The results reveal that actively open-minded thinking, risk proclivity and AI self-competency are positively associated with the digital transformation of F-OMB, while technology turbulence has a negative association. Moreover, AI self-competency and I-5.0 capabilities mediate between actively open-minded thinking and digital transformation. Descendant entrepreneurs' risk proclivity positively moderates the relationship between actively open-minded thinking and digital capabilities (AI self-competency and I-5.0 capabilities). Technology turbulence does not moderate the relationship between AI self-competency and digital transformation, but negatively moderates the relationship between I- 5.0 capabilities and digital transformation.
Anchored on the knowledge-based view theory, this study provides novel empirical evidence by investigating the mediating mechanisms of (AI self-competency and I- 5.0 capabilities) between actively open-minded thinking and digital transformation, and the boundary conditions of risk proclivity and technology turbulence in the context of F-OMB.
