Digital Innovation Process in Family Firms: a Resource Based Perspective

Digitalization is affecting everyday life and that of organizations. Research on family firm technological inno- vation has gained momentum, focusing on differences between family and non-family firms, the drivers and outputs of family firm innovation, and the family business peculiarities that influence innovation activities and outputs. However, in this flourishing debate, a gap exists in the literature on how the family firms innova- tion process unfolds. Through a qualitative multi-case study of 15 Italian manufacturing firms, we combine interview data with multiple secondary data sources to abductively in-depth analyze the process of innovation in family firms. Our findings unpack the digital innovation process in family firms, identifying three process phases, to theoretically explain how family firms innovate and can leverage their characteristics, resources and capabilities in their technological advantage. Our study contributes to the family business literature, innovation literature, and resource-based theory.