The Success of Family Businesses in the Digital Economy

Abstract

This study aims to analyze the key factors contributing to the success of family businesses in the digital economy. A mixed-methods research approach was employed, combining quantitative data collected from 100 respondents through questionnaires and qualitative insights obtained from in-depth interviews. The study focuses on strategies adopted by family businesses to navigate the digital landscape.

Findings reveal that three primary factors significantly influence the success of family businesses:

1. Management Efficiency: Businesses that integrate digital technology into their operations and have effective decision-making processes tend to achieve higher success rates.
2. Business Succession: Clearly defined ownership transition plans and well-prepared successors contribute to business continuity.
3. Corporate Culture: Strong family unity, trust, and effective internal communication are critical elements for business stability and sustainability.

The Multiple Regression Analysis indicates that digital technology adoption has the strongest impact on business success (β = 0.38, Sig. = 0.000), followed by internal management efficiency and succession planning.

Furthermore, the study finds that family businesses that quickly adapt to the digital economy have a higher chance of growth compared to those adhering to traditional management approaches. A well-structured succession plan and a strong corporate culture contribute to long-term business survival and expansion.