Family Business Adaptation to Disruptive Technology : Case Studies on Family Businesses in Handling the Challenges of Disruptive Technology and Maintaining Competitive Advantage within a Swedish Market

Abstract: Disruptive technologies continue to pose challenges for industries worldwide, and firms are constantly learning how to adapt in order to remain competitive. Family businesses are not immune to these “shocks” in their industry, and they too need to harness the potential advantages of novel technology just as much as corporations do. While there is extensive research on the methods and strategies employed by multinational corporations, the study of how a family business could or should adapt is virtually unexplored. There is a need to understand the intricate decision making process of business leadership in dealing with disruptive technology, particularly in regards to maintaining or gaining a competitive advantage. This study conducted in-depth qualitative interviews with three Swedish family businesses, all who were successful in adopting disruptive technologies to their benefit. Although each of the businesses took different paths for technology adaptation and to maintain their competitive advantage there was a consistent thread in the leadership strategy. The results revealed that strong family leadership, in the form of stewardship, was essential to maintaining their competitive advantage while dealing with the challenges of disruptive technology. Stewardship places emphasis on family core values, the drive to improve the performance of the business for the benefit for family and the employees, and a commitment to long-term goals. Stewardship proved to be the determining factors for these families in their successful disruptive technology adaption.