How organizational readiness for digital innovation shapes digital business model innovation in family businesses

Abstract

PurposeFamily businesses often lack sufficient knowledge about digital business model innovation digital business model innovation (BMI). This study's purpose was to analyze how and when organizational readiness for digital innovation exerts a positive impact on family businesses' digital BMI. To do so, the authors examined the mediating effect of the familiness learning mechanism and the moderating effect of family involvement on this relationship.Design/methodology/approachA quantitative survey method was used to collect the data for this study. Using a sample of 282 family businesses involved in manufacturing in China, the authors conducted hierarchical regression analyses to evaluate the authors' theoretical model.FindingsThe results of this work demonstrate a positive relationship between organizational readiness for digital innovation and family businesses' digital BMI, and the find that the familiness learning mechanism mediates this relationship. The findings also show that second-generation family involvement in management moderates the direct effect of organizational readiness for digital innovation on the familiness learning mechanism, as well as the indirect effect of organizational readiness for digital innovation on digital BMI via the familiness learning mechanism. Moreover, the results establish that family involvement in ownership moderates the direct effect of the familiness learning mechanism on digital BMI, as well as the indirect effect of organizational readiness for digital innovation on digital BMI via the familiness learning mechanism.Practical implicationsThis study provides practical contributions to the literature on family businesses and to public policy, providing concrete suggestions for fostering digital innovation in family enterprises. This study also enriches our understanding of the unique conditions by which family businesses can successfully implement digital BMI.Originality/valueThis research confirms that organizational readiness for digital innovation is an antecedent of digital BMI. This finding offers a new perspective that helps explain what might lead family businesses to engage in digital BMI. This study also places the familiness learning mechanism into a theoretical framework, which expands the current understanding of how organizational readiness for digital innovation facilitates digital BMI. Moreover, this work provides new insights into the boundary conditions by which organizational readiness for digital innovation affects the digital BMI of family businesses in terms of second-generation family involvement in management and family involvement in ownership.

Unravelling open innovation determinants and firm performance relationships in CEE and SEE countries

“…In our SEM analysis, three out of five OI dimensions - R&D, knowledge and coopetition - are identified as statistically significant and positively associated with firm performance. This aligns seamlessly with recent studies by Feser (2022) and Xie et al . (2022), affirming the crucial role of these capacities in shaping organizational success specifically within the dynamic SEE and CEE regions.…”

Conceptualizing Digital Readiness, Strategic Foresight, and Strategic Flexibility as Drivers of Digitalization and Performance of Small and Medium Enterprises

“…Digital readiness has been defined as management's commitment and change efficacy for implementing digitalization in all organizational business processes. Hence, the ability to motivate and enable the embracing of change are two key characteristics that imply the state of digital readiness appropriate for an organization [48]. Concerning digitalization readiness, extant literature indicates that readiness for digitalization is an organization's assessment of its state of being prepared for effective adoption, assimilation, and exploitation of digital technologies into their operational activities [49].…”

The role of digital technology and digital innovation towards firm performance in a digital economy

“…In Chinese manufacturing companies, second-generation family involvement management moderates the direct influence of organizational preparation for DI on the families' learning mechanisms (Xie et al. , 2023).…”

“…In Chinese manufacturing companies, second-generation family involvement management moderates the direct influence of organizational preparation for DI on the families' learning mechanisms (Xie et al, 2023). While institutional pressure has a positive influence on open innovation, digital knowledge has a negative impact on this relationship (Jiao et al, 2022).…”