The effect of digital transformation on family SME performance: The moderating role of family involvement

Type of the article: Research ArticleAbstractThe performance of family-owned small and medium-sized enterprises is a primary concern for their leaders. Through digital transformation, these firms are able to create added value and promote their growth. This study examines the effect of digital transformation on the performance of family SMEs, considering the moderating role of family involvement in management. As a result, a quantitative study was adopted using an online survey. Data were collected from a purposive sample of 182 Moroccan family SMEs, with responses obtained from their owner-managers between September and October 2025. In addition, the data were analyzed using structural equation modeling (SEM) with SMART PLS 4 software. The results confirm that the digital transformation of family SMEs has a positive effect on their commercial (β = 0.532, p < 0.05) and financial (β = 0.249, p < 0.05) performance but has no significant effect on operational performance (β = 0.124, p > 0.05). Furthermore, family involvement in management negatively moderates the relationship between digital transformation and commercial performance (β = –0.166, p < 0.05) and positively moderates the relationship between digital transformation and operational performance (β = 0.309, p < 0.05). Moreover, family involvement does not affect the relationship between digital transformation and financial performance (β = 0.040, p > 0.05). The results explain the importance of implementing new digital technologies in family SMEs to improve performance and highlight the nuanced, dual role of family involvement as both an inhibitor and a facilitator.