Abstract
ABSTRACT The advent of digital transformation has profoundly impacted the diversified development of Chinese family firms. Consequently, this study investigates the influence of digital transformation on the diversification strategies of Chinese family firms, employing a sample of Chinese-listed family firms from 2016 to 2020. The findings reveal a significant contribution of digital transformation to the diversification of Chinese family firms. The analysis shows that second-generation involvement plays a moderating role, negatively affecting both digital transformation and diversification. Furthermore, the study highlights that the positive impact of digital transformation on diversification strategy is particularly notable among family firms characterised by low family authority and high innovation capability.
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