Heterogeneity in Digital Posture of Family Firms in Emerging Economies
By ABHISHEK KATHURIA, Abhishek Sachdeva, Prasanna Karhade, Sougata Ray
Citation
KATHURIA, ABHISHEK., Sachdeva, Abhishek., Karhade, Prasanna., Ray, Sougata. (2024). Heterogeneity in Digital Posture of Family Firms in Emerging Economies .
Copyright
2024
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Abstract
Family firms, the predominant form of business in emerging economies, differ in their business strategies, behaviors, and outcomes from non-family firms. We conceptualize Digital Posturing as a set of signals firms produce to convey their focus on digital technologies. We propose three hypotheses extending the baseline hypothesis that family firms differ from non-family firms in their Digital Posture. First, Family Business Group (FBG) affiliation negatively influences digital posturing, as FBGs may serve as market-supporting institutions providing financial capital to member firms. Second, there is a negative influence of Foreign Ownership on Digital Posture, which is intensified in the presence of FBG affiliation, as foreign promoters offer financial capital, reducing the need for extensive Digital Posturing to attract external funds. Third, there is a positive influence of the Strength of Family Ties on Digital Posture, which weakens due to FBG affiliation, as external stakeholders perceive such firms as more conservative, and these firms suffer from greater opacity. Empirical analysis, using panel regression on archival data from listed family firms in India (2016-2021), supports our theory, emphasizing how FBG affiliation shapes the strategic IT behavior of firms. This study contributes to the growing literature on family firms within the information systems field

Sougata Ray is a Professor of Strategy and Entrepreneurship (Practice), Thomas Schmidheiny Chair Professor, and Executive Director of the Thomas Schmidheiny Centre for Family Enterprise, at the Indian School of Business (ISB). Earlier, he served at the Indian Institute of Management Calcutta for over two decades as a Professor of Strategic Management, a member of the Board of Governors, and Dean. He was also a senior-level executive at Infosys Technologies Limited for two years in a strategic role as Head of innovation Lab. He is an alumnus of Indian Institute of Management, Ahmedabad and the Indian Institute of Engineering, Science and Technology, Shibpur.

Professor Ray’s research interests have evolved over the years in understanding various facets of strategic management, entrepreneurship, innovation and the governance of firms and business groups in high-growth economies. Given the ubiquity of family firms in India and observing how family owners and leaders play a pivotal role in shaping the future of enterprises, he was gradually drawn into family business research. In recent years, under the aegis of the Thomas Schmidheiny Centre for Family Enterprise, he has been spearheading a mega programme towards developing a solid research-based understanding of family firms and business groups in India and South Asia. He has also been leading a research programme in the areas of social entrepreneurship, corporate sustainability strategy and practices, bottom-of-the-pyramid initiatives, and involvement of corporations in inclusive and sustainable development.

Professor Ray is one of the most prolific and cited home-grown strategy scholars in India. He has been publishing regularly in reputed scholarly journals and presenting in leading peer-reviewed international conferences. He has received over half a million dollars in research grants, several prestigious research and teaching awards, and numerous award nominations.

He blends over three decades of experiences in diverse roles – as an international-quality academic, research, and institution builder, alongside  hands-on corporate managerial and governance roles as an executive, member of the Board of Directors, and co-founder of startups.. He has been an advisor to numerous medium and large corporations, family businesses, and startups, and he has served as Principal Consultant to leading international development agencies. He currently sits on the governing and advisory boards of several listed and unlisted companies, startups, and social enterprises.

Professor Ray has taught in numerous executive education programmes and has designed and conducted many workshops exclusively for owner-managers, entrepreneurs, and C-level executives of companies in India, Asia, Middle East, Nordic and Scandinavian countries. Over the years, he has led over thirty C- level executive delegations to countries on every continent for high-level meetings with the ministers, high-ranking officials, multilateral agencies such as the WTO and ILO, Chambers of Commerce, MNCs, industrial organisations, research labs, and academic institutions.

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Sougata Ray