Digital Siege

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DOI :10.26650/B/SS07.2021.002.07   IUP :10.26650/B/SS07.2021.002.07    Full Text (PDF)

Digital Innovativeness of Successors in Smaller Family Business

Marina Letonja

Family businesses represent the majority of companies in Slovenia and as well in the EU. Their contribution to GDP and employment is very important - in Slovenia, they create up to 69 % of total sales revenues and to 70 % of all employment (EY, 2015). Most smaller family businesses are still owned by the generation of their founders and are facing the transition of management and/or ownership to the next generation. Succession is one of the most researched fields of family business while innovativativeness of family businesses, or of founders or succesors remains unexplored. In order for the succession process to lead to longterm sustainability of family businesses, the succession process must be timely and well planned, the potential successor(s) must be carefully selected and prepared for taking the batton from their predecessor. The successors taking responsibility for managing further operations and growth of family businesses must understand the importance of innovativation for ensuring long-term competitiveness and sustaining a competitive edge for their companies and products. It is not enough that the founders were innovative, nowadays it is important that their successors are also innovative and consequently their companies are innovative as well. Facing the challenges of digitization, smaller family firms have to adopt digital solutions into their daily practice. Are the successors ready for it? 


Keywords: Family business, succession, innovativeness, digital innovation

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