A dynamic capabilities approach for the survival of Pakistani family-owned business in the digital world Academic Article uri icon


  • PurposeThe purpose of this paper is to identify the role of dynamic capabilities for the survival of family-owned business (FOB) in Pakistan. The paper aims at examining the impact of digitization on business landscape for FOBs.Design/methodology/approachData for this research were collected using in-depth interviews. About 24 interviews were conducted with the owners of 24 FOBs in four different states of Pakistan. Interviews were translated and transcribed. By using GIOIA methodology, first-order concepts, themes and aggregate dimension were identified that explained the additional dynamic capabilities needed for family businesses in digital era.FindingsThe results of the data analysis revealed that family businesses are struggling to cope with thriving digital market. Digital mind-set is needed to survive in the market. The ability to respond to change is needed. The intelligence and wisdom needed for creating and maintaining an intellectual asset should be used by investing in new technologies. Importantly, businesses need to maintain an emotionally and artificially intelligent brand.Research limitations/implicationsThe research is based on four different states of Pakistan. By focussing on each state could generate more data. The research is focussed on Pakistan to know about the dynamics of emerging economies. Replicating same research on other developing countries can bring more results. Lastly, it is a purely qualitative research. A quantitative analysis could bring a new context to the problem.Practical implicationsUnderstanding the challenges of family businesses for coping in digital market helps other family businesses to get a know-how before entering the market. Digital presence can help in building the brand but when not handled correctly can damage the brand as well. Investing in additional capabilities can provide a competitive advantage to family businesses. Family businesses possess a passion for the idea which helps to build the narrative for the brand.Originality/valueThis research is contributing to highlight the scenario of an emerging economy by studying the challenges of FOB in digitization. The literature provides more information and theories regarding developed countries. This research is a picture of developing economy and how wave of digital era has transformed the business landscape. In-depth interviews were conducted for deep insights which helps in contributing towards family business research.

publication date

  • 2020