Digitalization in German family firms � some preliminary insights

Abstract

Currently, digitalization is a key topic among firms. This paper addresses this topic in the case of German family firms. German family firms have been internationally recognized already for a long time to be at the same time very innovative but also acting very secretly. Therefore it is not surprising that prior literature on this topic is between scarce to inexistent even though literature on digitalization and SME’s in general is widespread. The key question addressed in this paper is how German family firms try to face the challenge of the digital transformation. To provide some suggestions, we relate in an explorative and theorizing essay current evidence from literature on digitalization to key characteristics of German family firms and to insights we have gained in our personal relations to German family firms and their networks. We find indications that the digital transformation touches the heart of those firms as in the light of the new technological opportunities, key values such as innovation, secrecy, specialization on a niche and customer orientation might be in need to be redefined. As a result, starting from the German case we outline challenges and opportunities for family firms that might go far beyond the German case and point to fruitful areas for future research on family firms.