Family firms' investment in and implementation of Industry 4.0: A social capital theoretical perspective

Abstract The fourth industrial revolution (I4.0) is critically relevant to the future of business management. In this study, we theoretically examine I4.0 investment and implementation from a social capital perspective. By explicating the various forms of social capital in family firms—namely, family‐owned, family‐managed, multigenerational, and single‐generation family firms—we offer a deep reflection on the heterogeneity of social capital in the world's most common form of organization. Our theoretical reasoning culminates in a model that delineates four propositions, each corresponding to a specific form of social capital and its relevance to the drivers of I4.0 investment and implementation. Subsequently, we establish conceptual links between the I4.0 and family social capital literature, contributing to knowledge by advancing three streams of the literature. First, within the family social capital literature, we offer a better understanding of the boundary conditions of social capital, a deeper reflection on its heterogeneity, and a shift in focus from its impact on firm performance to its role in knowledge creation for I4.0. Second, within the family firm literature, we unpack the importance of the generational element in I4.0 investment and implementation. Third, within the I4.0 literature, we offer fresh insights from a sociological perspective that complement existing technological perspectives. Our study also provides directions for future research for scholars looking to advance this domain.