Family firms' investment in and implementation of Industry 4.0: A social capital theoretical perspective

The fourth industrial revolution (I4.0) is critically relevant to the future of busi-ness management. In this study, we theoretically examine I4.0 investment andimplementation from a social capital perspective. By explicating the various formsof social capital in family firms—namely, family-owned, family-managed, multi-generational, and single-generation family firms—we offer a deep reflection onthe heterogeneity of social capital in the world’s most common form of organiza-tion. Our theoretical reasoning culminates in a model that delineates four proposi-tions, each corresponding to a specific form of social capital and its relevance tothe drivers of I4.0 investment and implementation. Subsequently, we establishconceptual links between the I4.0 and family social capital literature, contributingto knowledge by advancing three streams of the literature. First, within the familysocial capital literature, we offer a better understanding of the boundary condi-tions of social capital, a deeper reflection on its heterogeneity, and a shift in focusfrom its impact on firm performance to its role in knowledge creation for I4.0.Second, within the family firm literature, we unpack the importance of the genera-tional element in I4.0 investment and implementation. Third, within the I4.0 liter-ature, we offer fresh insights from a sociological perspective that complementexisting technological perspectives. Our study also provides directions for futureresearch for scholars looking to advance this domain