The Impact of Digital Transformation on Strategic Resilience in Family-Owned Businesses: Insights from Kenya
DOI:
https://doi.org/10.47672/ijbs.2767Keywords:
Resilience, Digital, Strategic, Resilience, Family-Owned BusinessesAbstract
Purpose: The purpose of this article was to analyze the impact of digital transformation on strategic resilience in family-owned businesses: insights from kenya
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: Research on Kenyan family-owned businesses reveals that digital transformation is a critical driver of strategic resilience, enabling firms to maintain revenue, diversify markets, and manage crises more effectively. Key findings show that e-commerce adoption bolstered market resilience, data analytics enhanced strategic agility, and FinTech integration strengthened financial stability. However, the effectiveness of these digital tools is heavily mediated by internal family dynamics. Patriarchal governance structures and resistance from senior leadership often hinder digital adoption, while businesses that successfully leverage the digital literacy of younger generations through formal mentorship see greater success.
Unique Contribution to Theory, Practice and Policy:
Socioemotional wealth (SEW) theory, Dynamic capabilities view, Resource-based view (RBV) theory may be used to anchor future studies on the the impact of digital transformation on strategic resilience in family-owned businesses: insights from kenya. Proactively create structured reverse mentorship programs where younger, digitally-native family members are given formal responsibility for coaching senior leaders on emerging technologies. Policymakers, in partnership with universities and industry associations, should establish targeted digital literacy hubs and clinics.
Downloads
References
Arévalo, A., Lóbez, L., & Sanchez, L. (2023). Socioemotional wealth and digital transformation in family firms: A configurational approach. Journal of Family Business Strategy, *14*(1), 100536. https://doi.org/10.1016/j.jfbs.2022.100536
Chepkwony, C., & Memba, F. (2022). Patriarchal structures and digital transformation in Kenyan family businesses: A case study of Nairobi County. Journal of Family Business Management, *12*(4), 1015-1033. https://doi.org/10.1108/JFBM-05-2022-0067
Kamau, S., & Omondi, R. (2021). Bridging the digital divide: Generational mentorship and strategic resilience in Kenyan family firms. African Journal of Management, *7*(2), 45-67.
Karimi, J., & Thuku, P. (2020). Socio-digital resilience: An ethnography of community-embedded family enterprises in Mombasa. Kenya Studies Review, *5*(1), 88-110.
Kraus, S., Breier, M., Dasi-Rodriguez, S., Durst, S., Calabrò, A., & Kanbach, D. K. (2020). The role of family firm specific resources in innovation: An integrative literature review and framework. Management Review Quarterly, *70*(2), 185–235. https://doi.org/10.1007/s11301-019-00170-9
Kraus, S., Breier, M., Jones, P., & Hughes, M. (2021). Individual and organizational factors of digital transformation in family firms: A systematic literature review. Family Business Review, *34*(2), 131–153. https://doi.org/10.1177/08944865211003170
Muthoni, L., & Ahmed, A. (2020). FinTech adoption and financial resilience of small family-owned retail businesses in Kenya. International Journal of Finance and Economics, *26*(3), 4560-4575. https://doi.org/10.1002/ijfe.2078
Ngugi, P., & Magutu, P. (2020). Technological innovation and performance of small and medium family-owned enterprises in Nairobi County, Kenya. Journal of Asia Business Studies, *14*(4), 541–562. https://doi.org/10.1108/JABS-05-2019-0137
Njoroge, M., & Kibera, F. (2023). E-commerce adoption and strategic resilience of family-owned businesses in Kenya: A post-pandemic analysis. Journal of Entrepreneurship and Innovation in Emerging Economies, *9*(1), 112-130.
Otieno, D., Maina, E., & Were, E. (2022). Data-driven decision making and strategic agility: A survey of manufacturing family businesses in Kenya. East African Journal of Business and Economics, *5*(1), 22-40.
Teece, D., & Leih, S. (2016). Uncertainty, innovation, and dynamic capabilities: An interdisciplinary perspective. California Management Review, *58*(4), 5–42. https://doi.org/10.1525/cmr.2016.58.4.5
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, *28*(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Wanjiru, P., & Nganga, C. (2021). Digital strategy and supply chain resilience: A longitudinal study of Kenyan family-owned manufacturing firms. Strategic Management Journal, *42*(8), 1501-1520. https://doi.org/10.1002/smj.3285
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, *52*(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, *52*(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Alex Thigah Kariuki
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
