Observing An Emerging Characteristic in Family Firms: Discretion for the Digital Transformation

The fourth industrial revolution (I4.0) is underway and unlike any of the previous revolutions in human history. Family firms are known to have heterogeneous core characteristics, that generate paradoxes differentiating their behaviors from non-family firms. However, at different periods of time, some characteristics become more important for survival and prosperity than others. Using an explorative qualitative approach, we found that discretion of the family members is essential for family firms during the I4.0 transformation. Our findings reveal that family firm’s that exhibit discretion adopt a digitalization posture and are better able to perceive and apply I4.0 technologies into their business. Our contributions enrich the literature on family firm digitalization while having implications for practitioners and policy makers.