Understanding factors influencing technical inertia in family-run SMEs : A study on technology adoption challenges

Abstract

The study aims to develop theoretical understanding regarding the factors impacting technical inertia in family-run businesses by studying the literature available. The factors impacting are similar in some ways to technology adoption in other businesses but family businesses bring along their own set of challenges to the mix. The study relies on a qualitative research design to identify the factors impacting the technology adoption. Drawing on the secondary data with an in-depth literature review, this study explores how family-run businesses approaches technology adoption. The analysis shows that family-run businesses may face multiple obstacles in the process of acquisition and adoption of technology. The factors like fear of change, lack of skills and conservative leadership being the prime ones. The paper contributes to a better understanding of how family businesses can leverage the adoption of new innovation. The technology adoption such as the use of Artificial Intelligence, ChatGPT and social media will help the business to grow and have the existence not only local but global as well. The use of technology will impact the business in decision making. This will further helps in grown and profitability in business with better utilisation of resources. This will also impact the evolution in the business. The paper suggests the future course of action which can be taken by these businesses. The paper offers insights into the very relevant field of technology adoption by the family businesses in India.