Digital Transformation in Family Businesses: The Role of Gen Z and Millennials in Shaping Business Sustainability

Abstract

This study explores the differences in digital management between Millennials and Generation Z in family businesses in the era of digital transformation through a comprehensive narrative literature review approach. Generation Z, as digital natives, brings a new perspective influenced by technological advancements, cultural changes, and flexible and collaborative leadership styles. Their approach to adopting digital innovation differs from the more cautious Millennial generation, which emphasizes stability through structured methods. This methodology involves a critical analysis of credible academic literature to synthesize insights into the contributions of both generations in accelerating digital transformation, bridging the generational gap, and facilitating cross-generational collaboration in family businesses. The research findings emphasize the importance of an inclusive leadership model and an adaptive organizational culture to effectively integrate the unique characteristics of Millennials and Gen Z. This study highlights the need for family business strategies that are responsive to the demands of digitalization and the expectations of the new generations for long-term sustainability and competitiveness.