Unpacking the role of entrepreneurial orientation in the digital transformation of family SMEs: The importance of leadership structure and generational involvement

Are entrepreneurially oriented family firms likely to embrace digital transformation? This study explores this compelling question, addressing the connection between entrepreneurial orientation (EO) dimensions and digital transformation (DT) in family-owned small and medium–sized enterprises (SMEs) while considering the moderating influence of leadership structure and generational involvement. Drawing upon upper echelon and socioemotional theories, we present findings from an analysis of 191 Spanish family SMEs. Our research indicates that while innovativeness and risk-taking positively influence DT, proactiveness does not have a significant effect on it. Interestingly, the familial nature of the CEO emerges as a crucial factor, exerting a negative influence on the innovation-driven and risk-taking pathways to DT. Our research also reveals that CEO–chair duality appears to hinder the relationship between risk-taking and DT, whereas multigenerational top management team (TMT) involvement negatively affects the relationship between proactiveness and DT. The results underscore the complexity of leadership dynamics and generational factors in shaping the EO–DT relationship and the critical role of strategic TMT composition in fostering DT within family SMEs.