From Legacy to Digital Resilience: A Systematic Review of Digital Transformation in Family Businesses

Abstract

Family firms often face the challenge of embracing digital transformation while preserving the values, identity, and legacy that have shaped the business over generations. Although research on this topic has expanded considerably, existing findings remain fragmented across different theoretical perspectives. This paper addresses that gap by developing the Digital–Legacy Balance Framework, which integrates socioemotional wealth (SEW), stewardship governance, and dynamic capabilities (DCs) to explain how family firms build digital resilience. Following the PRISMA protocol, a systematic review of 87 peer-reviewed studies published between 2010 and 2025 was conducted using articles from Scopus, Web of Science, and Emerald Insight. The findings reveal four recurring patterns in family-firm digital transformation: balancing legacy preservation with change, adopting stewardship-based digital governance, managing generational shifts in mindset, and selectively embracing innovation to protect socioemotional wealth. These patterns do not operate independently; rather, they reinforce one another through a cyclical process in which successful digital initiatives strengthen family identity and support future adaptation. The study suggests that digital transformation in family firms should not be assessed solely through implementation speed or short-term financial outcomes, but through digital resilience the ability to modernize while maintaining continuity, trust, and long-term family values. Although the framework is based on secondary data, it provides a foundation for future empirical research and offers practical insights for family-business leaders seeking to balance technological progress with the preservation of their heritage. Overall, the paper presents digital transformation as a process of renewal that enables family firms to remain competitive without losing the qualities that make them unique.