Family Business Adapting a New Digital-Based Economy: Opportunities and Challenges for Future Research

ABSTRACT

Firms need to transform dramatically to maintain their operations and survive. The pandemic has shown how family businesses (FBs) are solving complex problems faster than non-family. They have demonstrated the flexibility to transform and adapt because of their closeness to the firm’s processes and management and their social network inside and outside organizations that allow them to respond quickly to market needs based on a fast-making decisions process. FBs’ knowledge, which is embedded in their values, making decisions process, and remaining for generations, requires resilient and robust management. The relationship between family values and FB management differentiates by their complexity and generational aspect. These relations demonstrate that personal values can influence professionalization, succession, and innovation processes. In this regard, there is a lack of research to understand the findings, practices, and processes associated with managing the knowledge flows through which FBs execute innovation strategies and to build on professionalization and succession capabilities that could provide different avenues of innovation and adaptation for dealing with turbulent and uncertain times. This editorial intends to provoke discussion on what we know about family businesses and how they face different challenges in a complex world to survive. FBs must develop adaptive strategies and strengthen crucial processes to generate a competitive and sustainable advantage. Knowledge management provides models and tools to reinforce tacit knowledge management’s relevance in the professionalization and succession processes. Knowledge management becomes critical in an era in which uncertainty seems to be permanent.