Evolving financial practices in family enterprises: The impact of generational dynamics on digital transformation in Jordan

The adoption of digital financial tools improves financial efficiency, transparency, and governance. However, family-owned businesses in Jordan adopt these tools at a lower rate than non-family businesses, potentially limiting their competitiveness. This study examines the extent of digital adoption, its impact on financial management, and the role of generational involvement.A survey of 366 businesses (262 family-owned and 104 non-family) across six industries was analyzed using multi-group analysis. Family-owned businesses reported a 31.2% improvement in financial management after adoption, compared to 19.6% in non-family businesses (p = 0.039). Generational involvement increased adoption by 26.5% in family-owned businesses versus 10.8% in non-family businesses (p = 0.015). Cultural resistance hindered adoption in family-owned businesses by 4.5% more than in non-family businesses (p = 0.028). Business size influenced adoption similarly (10.2% vs. 10.1%, p = 0.460). Financial management improvements were slightly lower in family-owned businesses (76.6%) than in non-family businesses (78.2%, p = 0.532). Adoption rates in family-owned businesses were 11.7% lower (p = 0.039). The interaction of business type and generational involvement contributed to a 22.0% increase in adoption (p < 0.01).These results underscore the importance of phased adoption, digital literacy programs, and intergenerational collaboration in accelerating financial digitalization within family-owned businesses. Addressing cultural resistance is essential for ensuring long-term financial sustainability and competitiveness in Jordan’s evolving economy.