Digital strategy in Brazilian family business

Abstract

The study aimed to analyze the effect of digitalization strategies on business performance, mediated by organizational innovation in Brazilian family Micro, Small, and Medium Enterprises (MSMEs). This research adopted a descriptive approach with a quantitative methodology, using a sample of 301 Brazilian family MSMEs. Data were collected from studies by the Foundation for Strategic Analysis and Development of Small and Medium Enterprises (FAEDPYME). The theoretical model generated four research hypotheses. Data were processed and analyzed using the structural equation method in SmartPLS 4.0 software. The results confirm the existence of a positive and significant relationship between digitalization strategies, business performance, and organizational innovation, including the mediating effect. The findings highlight the importance of digitalization strategies and organizational innovation in driving the business performance of Brazilian family MSMEs. This study contributes to strategic management practices in family businesses by identifying that effective digitalization strategies and innovation practices allow significant advancements in business performance and subsequent organizational innovation. Thus, they can guide the development of more effective business policies and practices, contributing to the competitiveness of family businesses in the contemporary market.