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Divided we transform? Top executive team faultlines and digital transformation in family firms

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  • Zhang, Yue
  • Wei, Xuhua

Abstract

The digital era imposes significant transformation pressures on family firms and has drawn increasing scholarly attention to their digital transformation drivers. However, the influence of top management team (TMT) interactions on strategic decision-making remains underexplored. Based on subgroup theory, this study examines the impacts of TMT faultlines on digital transformation and their mechanisms. Analyzing panel data from Chinese listed family firms (2012–2022), we find that TMT identity-based faultlines hinder digital transformation by weakening dynamic capabilities. However, this indirect effect diminishes in highly dynamic environments. Conversely, knowledge-based faultlines promote digital transformation by enhancing dynamic capabilities, with environmental dynamism strengthening the indirect effect. Overall, this study deepens the understanding of the micro drivers of family firms’ digital transformation and provides practical guidance for them to achieve digital transformation.

Suggested Citation

  • Zhang, Yue & Wei, Xuhua, 2026. "Divided we transform? Top executive team faultlines and digital transformation in family firms," Technology in Society, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:teinso:v:84:y:2026:i:c:s0160791x2500315x
    DOI: 10.1016/j.techsoc.2025.103125
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