Investigating the influence of digital financial inclusion on the performance of family firms in India: does financial well-being mediate?

Purpose This paper aims to investigate the influence of digital financial inclusion on the performance of family firms in India. Additionally, our analysis evaluates the potential mediating role of financial well-being in the correlation between digital financial inclusion and family firms’ performance. Design/methodology/approach A structural equation model is developed to investigate the relationship between digital financial inclusion, financial well-being and family firm performance. The study has collected 312 responses from women entrepreneurs engaged in family businesses across the Mayurbhanj and Sundargarh districts in Odisha, India. Findings The results highlighted that the digital financial inclusion of family business owners significantly improves the performance of their businesses. Furthermore, financial well-being is also crucial since it significantly mediates between digital financial inclusion and family firm performance. Originality/value The study broadens the scope related to adopting digital financial tools and strategies aimed at enhancing the performance of businesses, thereby facilitating economic growth.