Abstract:

This study examined the influence of digital technology on the relationship between socioemotional wealth and innovation among family enterprises in Ogun State, Nigeria. The research was motivated by the growing need to understand how family-owned enterprises balance socioemotional priorities with innovation demands in an increasingly digital business environment. The study was guided by five specific objectives: to examine the effect of socioemotional wealth on innovation; to assess the influence of digital technologies on innovation; to explore the relationship between socioemotional wealth and digital technology adoption; to investigate the mediating role of digital technologies in the socioemotional wealth–innovation relationship; and to identify the challenges influencing digital technology adoption among family enterprises. A descriptive survey research design was adopted for the study. The target population consisted of approximately 1,479 family enterprises, representing 60% of the 2,465 registered small and medium enterprises in Ogun State, Nigeria. Using the Cochran formula, a sample size of 305 respondents was determined. Primary data were collected through a structured questionnaire, while descriptive and inferential statistical analyses were conducted using SPSS software. The findings revealed that socioemotional wealth had a significant positive influence on innovation (β = 0.620, p < 0.05). Similarly, digital technology demonstrated a strong positive effect on innovation performance (β = 0.710, p < 0.05). The study further identified a significant positive relationship between socioemotional wealth and the adoption of digital technologies (r = 0.550, p < 0.05). In addition, digital technologies significantly mediated the relationship between socioemotional wealth and innovation (β = 0.480, p < 0.05), indicating that technological adoption enhances the innovative capacity of family enterprises. However, several barriers, including high implementation costs, inadequate digital skills, and poor infrastructural facilities, negatively affected the adoption of digital technologies (β = -0.600, p < 0.05). The study concluded that digital technologies play a critical role in fostering innovation and sustaining competitiveness among family enterprises. It therefore recommended increased investment in digital competencies, infrastructural development, and supportive government policies to facilitate effective digital transformation and innovation within family-owned businesses.