The Impact of Harmony on the Digital Transformation of Family Businesses

Abstract

The purpose of this thesis is to first define the concept of the family business, defining its main characteristics and critical issues. It then analyses the issue of conflict management, the concept of ‘harmony’ in recent accounting and finance literature, and then identifies how decision-making, implementation and technological development are affected by harmony in the family business. Digitalisation is a crucial process for the future of businesses, especially for family businesses, which are often characterised by more traditional structures and complex decision-making processes. Harmony between family members plays a crucial role in the success of this transformation. The central question is: can harmony between family members leading a company improve digital transformation by facilitating decision-making and implementation processes? To analyse the impact of family harmony on digitisation, a case study was conducted on a sample of 25 Italian family businesses, through short interviews and the analysis of data collected through questionnaires. The results show that a high level of harmony among family members favours a more open and collaborative approach towards the adoption of digital technologies, while internal conflicts slow down or hinder the process. This research suggests that improving internal relational dynamics is key to promoting digitisation in family businesses. Future studies could deepen the role of new generations in facilitating this transition.