Family Businesses and Their Transition to Industry 4.0

Abstract

Industry 4.0 (I4.0) is the new paradigm shift impacting businesses today. This study explores the state of Bangladeshi family businesses in adapting to I4.0 using a qualitative research methodology. Top management personnel were interviewed to capture their insights on transitioning to I4.0. The thematic analysis revealed four themes, current state of the businesses, challenges faced, pandemic impact on human resources, and future plans. Findings indicate high awareness and greater adoption of digital practices with COVID-19 acting as a catalyst. Although training is emphasized, there is a lack of focus on both career and general counselling, which may prove to be detrimental in the future. The study takes a resource-based view to find the bundle of resources acting as conditions for the family firms to evolve into the I4.0, thereby making a practical contribution to understanding the role of family businesses in implementing I4.0 policies to enrich their human resource competencies and leverage the benefits of I4.0.