Coping with digital innovation impacting small family firms in the Dominican Republic

Aybar Jimenez, Paola Elena

Coping with digital innovation impacting small family firms in the Dominican Republic - 2021.


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The importance of digital innovation for businesses is widely acknowledged. Nevertheless, little research has been carried out exclusively into how digital innovations are used and managed in family-owned businesses. How do organizations transform themselves by implementing these innovations, and what is their capacity to do so—particularly small family firms in Latin America? This paper attempts to reduce this knowledge gap using a grounded theory approach, a qualitative methodology with case studies of small family businesses in the Dominican Republic, and semi-structured interviews. The main result shown by this research is that there is room for digital innovation in these firms in order to cope with market demands and customers’ expectations. Digital innovation strongly relies on social media to promote the company’s offerings, on the use of a wide variety of financial services to capture revenue streams, on provisions from international suppliers to ensure high quality and competitive prices, and on the use of the internet to communicate with stakeholders. The family’s first and second generations make complementary contributions to the development of the business, combining tradition and technology.

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