Navigating uncertainty: The role of CEO competencies in strategic decision-making for digitalisation in family firms

A growing interest in digitalisation provides continuous support for corporate governance in addressing strategic decision-making under uncertain environments. Although an increasing number of studies provide valuable insights and practical implications, limited research examines specific CEO competencies, such as digital literacy, financial literacy, and experience, in relation to strategic decision-making for digitalisation in highly uncertain environments. This research employs annual reports and survey data from 100 family firms, applying Structural Equation Modelling with Partial Least Squares (SmartPLS) and Fuzzy Set Qualitative Comparative Analysis (fsQCA). The results indicated that CEOs with digital literacy, financial literacy, and experience are significantly involved in strategic decision-making for digitalisation. However, in highly uncertain environments, digitally literate and experienced CEOs are more actively engaged in strategic decision-making for digitalisation, whereas financially literate CEOs are not. The fsQCA results demonstrate two key configurations: a) digitally and financially literate CEOs; and b) financially literate and experienced CEOs, both of which are vital for specific decisions regardless of environmental conditions. This research contributes to Upper Echelons Theory and affirms that CEO attributes play a crucial role in shaping digitalisation strategies under uncertainty. It also opens new avenues for scholars investigating the relationship between top management attributes and digital transformation in uncertain contexts. The findings encourage family firms to prioritise competent CEOs who possess sufficient knowledge of IT, financial management, and business operations to articulate strategic decisions for digitalisation. Nonetheless, in highly uncertain environments, family business leaders and governance are advised to favour digitally literate and experienced managers over those who are solely financially literate.