Digital innovation in family firms: The roles of non-family managers and transgenerational control intentions

Digital innovation, i.e. the creation of products and services, processes, or business models on the basis of digital technology, represents a new innovation phenomenon that offers important opportunities, but also entails high risks. Family firm research argues that family firms generally possess a greater ability to innovate, but differ in their willingness to do so. We propose that with regard to digital innovation family firms rather face an "ability and willingness challenge", i.e. they differ in their willingness and their ability to engage in digital innovation. We analyze two factors-non-family managers and transgenerational control intentions-that might help family firms overcome the ability and willingness challenge and that allows to explain heterogeneity among family firms in the adoption of digital innovation. An empirical, survey-based investigation of 104 German family firms supports our hypotheses. We contribute to the literature on digital innovation in family firms as well as on family firm professionalization. Based on a survey of CEOs in 104 German family firms we show that non-family managers can drive digital innovation in family firms-if they receive the respective discretion. Interest in digital innovation in family firms is growing, as this type of innovation not only offers important benefits but also holds challenges for family firms. Our study offers insights into how family firms can foster digital innovation by integrating non-family managers who experience low levels of TCI from the owning family. Thus, the main implication of our study is that family firms should be open to new perspectives, networks, and knowledge provided by non-family managers to be prepared for the challenges of digital innovation.