Barriers to Digital Transformation of Family Businesses: Developing a Framework Using <scp>ISM</scp> Approach

ABSTRACT Digital transformation is concerned with digitalizing the whole organization and business processes. Despite the increasing recognition of its value, family businesses (FBs) often face significant challenges in their digital transformation journey due to unique structural and cultural attributes. This study employs the Interpretive Structural Modeling (ISM) technique to develop a framework that identifies and categorizes barriers hindering digital transformation in FBs in India. The research draws from extensive literature and expert insights, employing the ISM methodology to establish the interrelationships among these barriers. The MICMAC (Matriced Impacts Croisés Multiplication Appliquée à un Classement) approach categorizes these barriers by their influence and dependence. By identifying 12 critical barriers, the study aims to provide practical guidance for managers of FBs to prioritize digitalization efforts and streamline their digital transformation process. Further, this research reveals that the primary barriers to digital transformation in FBs are employees' resistance to change and data privacy and security concerns. The implications for research, practice, and society are discussed to bridge the gap between theory and practice and support effective digital transformation strategies for FBs.