No Access

BLOOD IS THICKER THAN WATER: THE ROLE OF FAMILY WILLINGNESS AND FAMILY ABILITY IN ACHIEVING HOLISTIC DIGITALISATION IN FAMILY BUSINESSES

ANNE K. HEIDER

Witten/Herdecke University, Witten Institute for Family Business, Alfred-Herrhausen Str. 48, 58448 Witten, Germany

Search for more papers by this author

THOMAS CLAUSS

Witten/Herdecke University, Witten Institute for Family Business, Alfred-Herrhausen Str. 48, 58448 Witten, Germany

E-mail Address: thomas.clauss@uni-wh.de

Corresponding author.

Search for more papers by this author

MARCEL HÜLSBECK

Witten/Herdecke University, Witten Institute for Family Business, Alfred-Herrhausen Str. 48, 58448 Witten, Germany

Search for more papers by this author

MAIKE GERKEN

Witten/Herdecke University, Witten Institute for Family Business, Alfred-Herrhausen Str. 48, 58448 Witten, Germany

Search for more papers by this author

, and

TOM A. RÜSEN

Witten/Herdecke University, Witten Institute for Family Business, Alfred-Herrhausen Str. 48, 58448 Witten, Germany

Search for more papers by this author

https://doi.org/10.1142/S1363919622400096Cited by:7 (Source: Crossref)

This article is part of the issue:

Special Issue — Holistic Digitalisation: Strategy, Transformation, and Implementation
Guest Editors: Daniel Schallmo, Joe Tidd, Christopher A. Williams and Barbara Krumay

Abstract

Recently, studies have highlighted the importance of a holistic digitalisation that incorporates process digitalisation, product digitalisation as well as digital transformation involving redefinitions of business models and organisational identities. Whereas previous studies either aimed for generalisability across firms, or investigated digital transformation projects in particular industries, only very few studies investigated the particularities of family businesses (i.e., family influence) in the digitalisation context. Based on a unique dataset of 164 German family firms, our study sheds light on the role of family ability and family willingness for holistic digitalisation. Our results show that product digitalisation is statistically independent from family influence. Whereas process digitalisation benefits only from family ability, digital tranformation is bound to the families’ willingness to pursue the transformation.

Keywords:

References

Abrell, T, M Pihlajamaa, L Kanto, J Vom Brocke and F Uebernickel (2016). The role of users and customers in digital innovation: Insights from B2B manufacturing firms. Information and Management, 53(3), 324–335. Crossref, Web of Science, Google Scholar
Annarelli, A, C Battistella, F Nonino, V Parida and E Pessot (2021). Literature review on digitalisation capabilities: Co-citation analysis of antecedents, conceptualisation and consequences. Technological Forecasting and Social Change, 166, 120635. Crossref, Web of Science, Google Scholar
Berman, SJ (2012). Digital transformation: Opportunities to create new business models. Strategy & Leadership, 40(2), 16–24. Crossref, Google Scholar
Block, J, D Miller, P Jaskiewicz and F Spiegel (2011). Innovation in founder and firms: Entrepreneurial versus nurturer identities of owners. Frontiers of Entrepreneurship Research, 31(13), 1–15. Google Scholar
Block, J, D Miller, P Jaskiewicz and F Spiegel (2013). Economic and technological importance of innovations in large family and founder firms: An analysis of patent data. Family Business Review, 26(2), 180–199. Crossref, Web of Science, Google Scholar
Calabrò, A, M Vecchiarini, J Gast, G Campopiano, A De Massis and S Kraus (2019). Innovation in family firms: A systematic literature review and guidance for future research. International Journal of Management Reviews, 21(3), 317–355. Crossref, Web of Science, Google Scholar
Campos Fernández, Julia and Ericsson, Neil R. and Hendry, David F., General-to-Specific Modeling: An Overview and Selected Bibliography (August 2005). FRB International Finance Discussion Paper No. 838, Available at SSRN: https://ssrn.com/abstract=791684 or http://dx.doi.org/10.2139/ssrn.791684. Google Scholar
Cappellari, L and SP Jenkins (2003). Multivariate probit regression using simulated maximum likelihood. The STATA Journal, 3(3), 278–294. Crossref, Web of Science, Google Scholar
Caputo, A, S Pizzi, MM Pellegrini and M Dabić (2021). Digitalisation and business models: Where are we going? A science map of the field. Journal of Business Research, 123, 489–501. Crossref, Web of Science, Google Scholar
Ceipek, R, J Hautz, A De Massis, K Matzler and L Ardito (2021). Digital transformation through exploratory and exploitative internet of things innovations: The impact of family management and technological diversification. Journal of Product Innovation Management, 38(1), 142–165. Crossref, Web of Science, Google Scholar
Chanias, S, MD Myers and T Hess (2019). Digital transformation strategy making in pre-digital organisations: The case of a financial services provider. Journal of Strategic Information Systems, 28(1), 17–33. Crossref, Web of Science, Google Scholar
Chesbrough, H (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43(2–3), 354–363. Crossref, Web of Science, Google Scholar
Chrisman, JJ and PC Patel (2012). Variations in R&D investments of family and nonfamily firms: Behavioral agency and myopic loss aversion perspectives. Academy of Management Journal, 55(4), 976–997. Crossref, Web of Science, Google Scholar
Chrisman, JJ, JH Chua, A De Massis, F Frattini and M Wright (2015). The ability and willingness paradox in family firm innovation. Journal of Product Innovation Management, 32(3), 310–318. Crossref, Web of Science, Google Scholar
Chrisman, J. J., Sharma, P., Steier, L. P., & Chua, J. H. (2013). The influence of family goals, governance, and resources on firm outcomes. Entrepreneurship Theory and Practice, 37(6), 1249–1261. Crossref, Web of Science, Google Scholar
Correani, A, De A Massis, F Frattini, AM Petruzzelli and A Natalicchio (2020). Implementing a digital strategy: Learning from the experience of three digital transformation projects. California Management Review, 62(4), 37–56. Crossref, Web of Science, Google Scholar
Craig, J and C Dibrell (2006). The natural environment, innovation, and firm performance: A comparative study. Family Business Review, 19(4), 275–288. Crossref, Web of Science, Google Scholar
Cuomo, MT, D Tortora, P Foroudi, A Giordano, G Festa and G Metallo (2021). Digital transformation and tourist experience co-design: Big social data for planning cultural tourism. Technological Forecasting and Social Change, 162, 120345. Crossref, Web of Science, Google Scholar
Daspit, J. J., Chrisman, J. J., Ashton, T., & Evangelopoulos, N. (2021). Family firm heterogeneity: A definition, common themes, scholarly progress, and directions forward. Family Business Review, 34(3), 296–322. Crossref, Web of Science, Google Scholar
Davis, P (1983). Realising the potential of the family business. Organisational Dynamics, 12(1), 47–56. Crossref, Web of Science, Google Scholar
De Massis, A, F Frattini and U Lichtenthaler (2013). Research on technological innovation in family firms: Present debates and future directions. Family Business Review, 26(1), 10–31. Crossref, Web of Science, Google Scholar
De Massis, A, F Frattini, J Kotlar, AM Petruzzelli and M Wright (2016). Innovation through tradition: Lessons from innovative family businesses and directions for future research. Academy of Management Perspectives, 30(1), 93–116, https://doi.org/10.5465/amp.2015.0017. Crossref, Web of Science, Google Scholar
De Massis, A, F Frattini, A Majocchi and L Piscitello (2018). Family firms in the global economy: Toward a deeper understanding of internationalization determinants, processes, and outcomes. Global Strategy Journal, 8(1), 3–21. Crossref, Web of Science, Google Scholar
De Massis, A, F Frattini, E Pizzurno and L Cassia (2015). Product innovation in family versus nonfamily firms: An exploratory analysis. Journal of Small Business Management, 53(1), 1–36. Crossref, Web of Science, Google Scholar
De Massis, A, J Kotlar, JH Chua and JJ Chrisman (2014). Ability and willingness as sufficiency conditions for family-oriented particularistic behavior: Implications for theory and empirical studies. Journal of Small Business Management, 52(2), 344–364. Crossref, Web of Science, Google Scholar
Diéguez-Soto, J, Garrido-A Moreno and M Manzaneque (2018). Unravelling the link between process innovation inputs and outputs: The moderating role of family management. Journal of Family Business Strategy, 9(2), 114–127. Crossref, Web of Science, Google Scholar
Dougherty, D and C Hardy (1996). Sustained product innovation in large, mature organisations: Overcoming innovation-to-organisation problems. Academy of Management Journal, 39(5), 1120–1153. Crossref, Web of Science, Google Scholar
Doz, YL and M Kosonen (2010). Embedding strategic agility: A leadership agenda for accelerating business model renewal. Long Range Planning, 43(2–3), 370–382. Crossref, Web of Science, Google Scholar
Duran, P, N Kammerlander, M Van Essen and T Zellweger (2016). Doing more with less: Innovation input and output in family firms. Academy of Management Journal, 59(4), 1224–1264. Crossref, Web of Science, Google Scholar
Ebers, M and I Maurer (2014). Connections count: How relational embeddedness and relational empowerment foster absorptive capacity. Research Policy, 43(2), 318–332. Crossref, Web of Science, Google Scholar
Eden, R, AB Jones, V Casey and M Draheim (2019). Digital transformation requires workforce transformation. MIS Quarterly Executive, 18(1), 4. Crossref, Web of Science, Google Scholar
Eller, R, P Alford, A Kallmünzer and M Peters (2020). Antecedents, consequences, and challenges of small and medium-sized enterprise digitalisation. Journal of Business Research, 112, 119–127. Crossref, Web of Science, Google Scholar
Filotto, U, M Caratelli and F Fornezza (2021). Shaping the digital transformation of the retail banking industry. Empirical evidence from Italy. European Management Journal, 39(3), 366–375. Crossref, Web of Science, Google Scholar
Foss, NJ, PG Klein, LB Lien, T Zellweger and T Zenger (2021). Ownership competence. Strategic Management Journal, 42(2), 302–328. Crossref, Web of Science, Google Scholar
Gomez-Mejia, LR, C Cruz, P Berrone and J De Castro (2011). The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5(1), 653–707. Crossref, Web of Science, Google Scholar
Gómez-Mejía, LR, KT Haynes, M Núñez-Nickel, KJ Jacobson and J Moyano-Fuentes (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52(1), 106–137. Crossref, Web of Science, Google Scholar
Gomez-Mejia, L, J Campbell, G Martin, R Hoskisson, M Makri and D Sirmon (2014). Socioemotional wealth as a mixed gamble: Revisiting family firm R&D investments with the behavioral agency model. Entrepreneurship Theory and Practice, 38(6), 1351–1374. Crossref, Web of Science, Google Scholar
Habbershon, TG, M Williams and IC MacMillan (2003). A unified systems perspective of family firm performance. Journal of Business Venturing, 18(4), 451–465. Crossref, Web of Science, Google Scholar
Heider, A, M Gerken, N van Dinther and M Hülsbeck (2021). Business model innovation through dynamic capabilities in small and medium enterprises–Evidence from the German Mittelstand. Journal of Business Research, 130, 635–645. Crossref, Web of Science, Google Scholar
Heider, A, M Hülsbeck and LV Schlenk-Barnsdorf (2022). The role of family firm specific resources in innovation: An integrative literature review and framework. Management Review Quarterly, Vol. 72, pp. 483–530. Online First, https://doi.org/10.1007/s11301-021-00256-3. Crossref, Google Scholar
Hiebl, M (2015). Family involvement and organisational ambidexterity in later-generation family businesses: A framework for further investigation. Management Decision, 53(5), 1061–1082. Crossref, Web of Science, Google Scholar
Hernández-Linares, R, S Sarkar and MJ Cobo (2018). Inspecting the Achilles heel: A quantitative analysis of 50 years of family business definitions. Scientometrics, 115(2), 929–951. Crossref, Web of Science, Google Scholar
Kallmuenzer, A, W Hora and M Peters (2018). Strategic decision-making in family firms: An explorative study. European Journal of International Management, 12(5–6), 655–675. Web of Science, Google Scholar
Kane, GC, D Palmer, Nguyen-A Phillips, D Kiron and N Buckley (2017). Achieving digital maturity. Mit Sloan Management Review, 59(1), pp. 1–31. Google Scholar
Klos, C, P Spieth, T Clauss and C Klusmann (2021). Digital transformation of incumbent firms: A business model innovation perspective. IEEE Transactions on Engineering Management. Online First, https://doi.org/10.1109/TEM.2021.3075502. Web of Science, Google Scholar
Le Breton–Miller, I and D Miller (2013). Socioemotional wealth across the family firm life cycle: A commentary on “Family Business Survival and the Role of Boards”. Entrepreneurship Theory and Practice, 37(6), 1391–1397. Crossref, Web of Science, Google Scholar
Li, L, F Su, W Zhang and J-Y Mao (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129–1157, https://doi.org/10.1111/isj.12153. Crossref, Web of Science, Google Scholar
Li, Z and JJ Daspit (2016). Understanding family firm innovation heterogeneity: A typology of family governance and socioemotional wealth intentions. Journal of Family Business Management, 6(2), 103–121. Crossref, Google Scholar
Llopis-Albert, C, F Rubio and F Valero (2021). Impact of digital transformation on the automotive industry. Technological Forecasting and Social Change, 162, 120343. Crossref, Web of Science, Google Scholar
Lokuge, S, D Sedera, V Grover and X Dongming (2019). Organisational readiness for digital innovation: Development and empirical calibration of a construct. Information and Management, 56(3), 445–461. Crossref, Web of Science, Google Scholar
Manesh, MF, MM Pellegrini, G Marzi and M Dabic (2020). Knowledge management in the fourth industrial revolution: Mapping the literature and scoping future avenues. IEEE Transactions on Engineering Management, 68(1), 289–300. Crossref, Web of Science, Google Scholar
Matzler, K, V Veider, J Hautz and C Stadler (2015). The impact of family ownership, management, and governance on innovation. Journal of Product Innovation Management, 32(3), 319–333. Crossref, Web of Science, Google Scholar
Matzler, K, SF von den Eichen, M Anschober and T Kohler (2018). The crusade of digital disruption. Journal of Business Strategy, 39(6), 13–20. Crossref, Google Scholar
Nambisan, S (2013). Information technology and product/service innovation: A brief assessment and some suggestions for future research. Journal of the Association for Information Systems, 14(4), 1. Crossref, Web of Science, Google Scholar
Nambisan, S, K Lyytinen, A Majchrzak and M Song (2017). Digital innovation management: Reinventing innovation management research in a digital world. MIS Quarterly, 41(1). Crossref, Web of Science, Google Scholar
Nambisan, S, M Wright and M Feldman (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. Crossref, Web of Science, Google Scholar
Nieto, MJ, L Santamaria and Z Fernandez (2015). Understanding the innovation behavior of family firms. Journal of Small Business Management, 53(2), 382–399. Crossref, Web of Science, Google Scholar
Nohria, N and R Gulati (1997). What is the optimum amount of organisational slack?: A study of the relationship between slack and innovation in multinational firms. European Management Journal, 15(6), 603–611. Crossref, Google Scholar
Nordqvist, M and L Melin (2008). Strategic planning champions: Social craftspersons, artful interpreters and known strangers. Long Range Planning, 41(3), 326–344. Crossref, Web of Science, Google Scholar
Rondi, E, A De Massis and J Kotlar (2019). Unlocking innovation potential: A typology of family business innovation postures and the critical role of the family system. Journal of Family Business Strategy, 10(4), 100236. Crossref, Web of Science, Google Scholar
Sarasvathy, SD (2008). Effectuation: Elements of Entrepreneurial Expertise. Cheltenham, UK: Edward Elgar. Crossref, Google Scholar
Schallmo, D, CA Williams and L Boardman (2017). Digital transformation of business models—Best practice, enablers, and roadmap. International Journal of Innovation Management, 21(08), 1740014–1740014. Link, Web of Science, Google Scholar
Schallmo, D, CA Williams and J Lohse (2019). Digital strategy—integrated approach and generic options. International Journal of Innovation Management, 23(08), 1940005. Link, Web of Science, Google Scholar
Schlippe, Av, TA Rüsen and T Groth (2021). The Two Sides of the Business Family—Governance and Strategy Across Generations. Cham: Springer. Crossref, Google Scholar
Schmid, T, A-K Achleitner, M Ampenberger and C Kaserer (2014). Family firms and R&D behavior–New evidence from a large-scale survey. Research Policy, 43(1), 233–244. Crossref, Web of Science, Google Scholar
Schwenk, CR (1995). Strategic decision making. Journal of Management, 21(3), 471–493. Crossref, Web of Science, Google Scholar
Sievinen, HM, T Ikäheimonen and T Pihkala (2020). Owners’ rule-based decision-making in family firm strategic renewal. Scandinavian Journal of Management, 36(3), 101119. Crossref, Web of Science, Google Scholar
Soluk, J and N Kammerlander (2021a). Digital transformation in family-owned Mittelstand firms: A dynamic capabilities perspective. European Journal of Information Systems, 1–36. Web of Science, Google Scholar
Soluk, J, N Kammerlander and S Darwin (2021b). Digital entrepreneurship in developing countries: The role of institutional voids. Technological Forecasting and Social Change, 170, 120876. Crossref, Web of Science, Google Scholar
Soluk, J, I Miroshnychenko, N Kammerlander and A De Massis (2021c). Family influence and digital business model innovation: The enabling role of dynamic capabilities. Entrepreneurship Theory and Practice, 45(4), 867–905. Crossref, Web of Science, Google Scholar
Tindale, RS and K Kluwe (2015). Decision making in groups and organisations. Eds.: Keren, G. & Wu, G., John Wiley & Sons. In The Wiley Blackwell Handbook of Judgment and Decision Making, Vol. 2, pp. 849–874. Crossref, Google Scholar
Urbinati, A, D Chiaroni and V Chiesa (2017). Towards a new taxonomy of circular economy business models. Journal of Cleaner Production, 168, 487–498. Crossref, Web of Science, Google Scholar
Veider, V and A Kallmuenzer (2016). Assessing long-term orientation among founder-and descendant-led firms. Journal of Family Business Management, 6(1). Crossref, Google Scholar
Verhoef, PC, T Broekhuizen, Y Bart, A Bhattacharya, JQ Dong, N Fabian and M Haenlein (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. Crossref, Web of Science, Google Scholar
Vial, G (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. Crossref, Web of Science, Google Scholar
Wang, Y, B Guo and Y Yin (2017). Open innovation search in manufacturing firms: The role of organisational slack and absorptive capacity. Journal of Knowledge Management, 21(3), 656–674. Crossref, Web of Science, Google Scholar
Warner, KSR and M Wager (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. Crossref, Web of Science, Google Scholar
Weimann, V, M Gerken and M Hülsbeck (2021). Old flames never die–the role of binding social ties for corporate entrepreneurship in family firms. International Entrepreneurship and Management Journal, Vol. 17, 1–24. Crossref, Web of Science, Google Scholar
Wessel, L, A Baiyere, R Ologeanu-Taddei, J Cha and T Blegind-Jensen (2021). Unpacking the difference between digital transformation and IT-enabled organisational transformation. Journal of the Association for Information Systems, 22(1), 102–129. Crossref, Web of Science, Google Scholar
Williams, R (2006). Generalised ordered logit/partial proportional odds models for ordinal dependent variables. The Stata Journal, 6(1), 58–82. Crossref, Web of Science, Google Scholar