In a recent paper, Assistant Professor Marco Mismetti and co-authors present a practical framework – the “4E lessons” – showing how multigenerational family firms can approach digital transformation by building on, rather than overcoming, their distinctive characteristics. 

Digital transformation and Industry 4.0 are reshaping how firms compete, but multigenerational family firms face a particular challenge: balancing long-standing traditions with rapid technological change. 

Risk aversion, generational tensions, and resistance to change are often described as barriers. Yet the study illustrates that the same family business dynamics can also become drivers of renewal when firms combine technological change with trust, long-term thinking, and collaboration across generations.  

In the study, Dr. Mismetti, together with Dr. Samuel Wayne Appleton (University of Bergamo), Professor Emanuela Rondi (Politecnico di Milano), and Professor Alfredo De Massis (University of Chieti-Pescara and IMD Business School), explored how family firms navigate this tension. 

Drawing on the interdisciplinary MASTERMIL research project, the authors conducted 60 in-depth interviews across 16 multigenerational Italian family firms in sectors ranging from textiles and steel to pharmaceuticals and food.  

“We often think of tradition and digital transformation as opposites. But in many family firms, tradition can actually create the trust, patience, and long-term perspective needed to make digital change work,” says Marco Mismetti, Assistant Professor at the Stockholm School of Economics. 

Based on the findings, the researchers identify four practical “4E lessons”: 

• Establish a shared digital vision between family and non-family managers, anchored in a deep understanding of the technology itself.  

• Enhance the next generation by giving them external experience, international exposure, and real responsibility for digital initiatives.  

• Evolve tradition toward innovation by aligning company culture and combining heritage skills with digital tools.  

• Embrace close relationships with external stakeholders – including universities, suppliers, customers, and industry networks – as sources of knowledge and competitive advantage.  

The study also extends the idea of “innovation through tradition” into the digital era, showing how succession and innovation can reinforce one another rather than create tension. 

“Digital transformation is rarely only about technology. It is also about relationships, culture, and how organizations learn across generations,” says Mismetti. “Family firms offer an interesting example of how companies can combine continuity with renewal.” 

While grounded in family firms, the authors argue that the lessons also offer insights for non-family organizations navigating technological change.

Vision-building, cultural renewal, intergenerational collaboration, and stakeholder engagement are increasingly important across industries facing rapid digital transformation. 

Read the article in full: “Mastering Digital Transformation: ‘4E Lessons’ from Leading Multigenerational Family Firms.”