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Building Saudi Family Firm Resilience Through Innovativeness, Digital Enablement, and Business Model Innovation: Questioning the Role of Generational Involvement

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  • Wassim J. Aloulou

    (Business Administration Department, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi Arabia)

Abstract

This study examines the relationships among firm innovativeness, digital enablement, business model innovation, and firm resilience within Saudi family firms, addressing the limited understanding of how these interrelated capabilities contribute to family firm resilience amid rapid digital transformation. Grounded in the Dynamic Capabilities View, the study proposes a sequential mediation model linking these constructs. Data were gathered from 167 family firms in Saudi Arabia and were analyzed using exploratory factor analysis and structural equation modeling (SEM). The findings show positive links between innovativeness, digital enablement, and business model innovation. Digital enablement is also related to business model innovation and firm resilience, and business model innovation positively relates to firm resilience. However, innovativeness does not directly relate to resilience, emphasizing the mediating roles of digital enablement and business model innovation. The results reveal that generational involvement significantly moderates role by weakening the direct effect on business model innovation while strengthening the role of digital enablement, suggesting nuanced family governance in digital transformation. This study extends the dynamic capabilities framework to family firm resilience in emerging economies and offers guidance for managers on fostering innovation culture and digital enablement. Limitations include the cross-sectional design and the focus on the Saudi-specific context.

Suggested Citation

  • Wassim J. Aloulou, 2026. "Building Saudi Family Firm Resilience Through Innovativeness, Digital Enablement, and Business Model Innovation: Questioning the Role of Generational Involvement," Sustainability, MDPI, vol. 18(3), pages 1-24, January.
    • Handle: RePEc:gam:jsusta:v:18:y:2026:i:3:p:1247-:d:1849185
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