Introduction
Family businesses are crucial in the global economy, contributing significantly to employment and economic growth. Some family businesses can be inherited for a century, while others are buried in the dustbin of history. They face unique challenges due to integrating family dynamics into their business. Succession planning, maintaining company and family stability, and ensuring future growth are key factors affecting their long-term success. The emergence of information systems management technology that will optimize business processes and decision-making by providing effective tools and strategies offers potential solutions to these challenges.
Literature Review
Process Mining and Business Process Management
Examining the benefits, process mining has become a valuable tool within business process management (BPM). Extracting valuable insights from disordered data allows for a deeper understanding and optimization of complex business processes. In Khan’s (2023) process mining analysis, attention was given to the challenges, practical applications, and impact on BPM. Emphasizing the main focus, the review questioned extracting meaningful information from unorganized data. Logs, transaction records, and system events are examples of the various sources organizations generate immense amounts of data from. A crucial task for organizations is to utilize this data effectively to improve their processes. Organizations can analyze this data by applying process mining techniques and uncover valuable insights such as trends, bottlenecks, and inefficiencies. Organizations are dealing with complex and interrelated workflows due to digitizing and automating activities. Process mining is a useful method for locating process models, determining if established rules are being followed, and locating possible bottlenecks and opportunities for improvement.
Family Business Dynamics and Management
Families and business interactions are intertwined in family enterprises, a special type of structure. A profound awareness of the processes in both domains is necessary to manage and navigate the complexity of family enterprises. Eddleston, Kellermanns, and Zellweger (2010) investigated how family and business domains interact in family enterprises. The authors underline how crucial it is to comprehend and control these factors because they are closely related. Family dynamics, including family objectives, beliefs, and connections, may greatly influence how decisions are made and how well a firm performs overall. The study advances knowledge of family enterprises by illuminating their specific traits and the intricate interaction between family dynamics and corporate decision-making. Ge and Campopiano’s (2022) views on knowledge management in family business succession are helpful. The process of handing over control and ownership of a family firm to the next generation is known as family business succession. The research investigates the difficulties and barriers encountered during the family’s succession process. It emphasizes how critical knowledge management and transfer are to ensuring a seamless transition and family company continuity. Successful family company succession depends on knowledge management techniques, including leveraging organizational expertise, implementing efficient communication plans, and promoting a learning culture. The results highlight knowledge management’s value in negotiating family enterprises’ difficulties and guaranteeing long-term viability.
Effective management requires an in-depth knowledge of family enterprises’ particular dynamics and difficulties. McCann and Shipley’s (2008) analysis of the difficulties facing the next generation in family companies offers workable answers. The writers emphasize the complicated family factors that can affect company operations, such as family conflicts, difficult family dynamics, and juggling personal goals with professional obligations. The crucial phase of leadership transition from generation to generation necessitates careful management and preparation. The essay provides insightful suggestions and tactics to deal with these issues, highlighting the significance of strong external support, mentorship, and good communication. The importance of information technology adoption in family companies and the function of effective institutionalization in boosting sustainability and profitability are discussed by Tara and Ahmad (2023). The research examines decision-making procedures in family enterprises while acknowledging the participation of many stakeholders. The research’s conclusions show that family firms frequently make decisions informally and rely heavily on tacit knowledge.
Information Systems and Technology Adoption in Family Businesses
In today’s digital world, information systems (IS) and technology adoption are essential to the profitability and competitiveness of enterprises. Järveläinen (2013) discusses how IT accidents and probable economic repercussions are related, emphasizing the approval of a framework for information system continuity management in family businesses. The essay recognizes family companies’ particular difficulties when adopting information technology (IT) to maintain corporate operations and improve operational effectiveness. The suggested framework offers a systematic method for handling IT events and reducing their negative effects on corporate operations. It emphasizes the significance of forethoughtful preparation, risk analysis, and efficient reaction plans. The link between family ownership, IT investment, and strategic control in family-owned enterprises is examined by Kathuria et al. (2023). The study draws attention to the distinctive traits of family-owned enterprises, such as their prudent strategic judgment and long-term asset preservation. It implies that, due to a tendency for cautious expenditures that prevent information asymmetries and digital trails, family ownership tends to impact IT investment negatively. The study highlights the importance of family ownership and executive management as drivers of variability in IT investment. It sheds light on the difficulties associated with adopting IT in the setting of family businesses.
It is important to comprehend family companies’ unique requirements and dynamics if you want to embrace and integrate technology successfully. In the context of family firms’ choice to implement a new management system, Li and Wu (2021) give pertinent research. The article discusses the benefits and drawbacks of utilizing Enterprise Resource Planning (ERP) systems and explains the factors influencing the decision to employ this technology. The research investigates the design and implementation of an ERP-based corporate logistics information management system customized to contemporary logistical needs. The results show how crucial logistics information management systems are for improving logistical effectiveness and establishing a competitive advantage. The use of ERP has been shown to have good effects on supply chain corporate logistics information management and to boost customer satisfaction, according to the study. Family members’ significance in a family business and their function in sharing information and expertise inside the company are the main topics of Lissillour and Sahut’s (2023) study. The study focuses on how information systems (IS) can foster trust in family companies. It highlights the value of interpersonal trust in family companies, especially in the beginning phases of growth, since it encourages dynamic problem-solving among staff members. The study investigates the function of system and competency trust in fostering open information exchange and productivity. The article also discusses how social media sites like WeChat and DingTalk may improve organization-wide openness and dependability, promoting the growth of interpersonal and professional trust.
Management Accounting and Business Performance
Measurement, analysis, and corporate performance improvement are all important functions of management accounting. Chiedu (2015) underlines the significance of an effective Management Information System (MIS) for long-term, sustainable corporate success. The study looks at a few commercial banks in Warri, Delta State, Nigeria, and emphasizes the importance of the link between control, decision-making, and effective MIS. To facilitate decision-making processes, companies need fast and reliable management information. This information enables them to react quickly to market changes, allocate resources efficiently, and accomplish company objectives. The study suggests using control, assessment, and training procedures to ensure the MIS is successful.
Organizations with efficient management accounting procedures and systems have access to timely, accurate information that helps them make wise decisions, allocate resources more effectively, and perform better overall. The implications of integrated information systems (IIS) on management accounting procedures are also studied by Pervan and Dropulic (2019). Based on information gathered from 108 Croatian companies, their study demonstrates that management accounting processes significantly shift when IIS is implemented. The study looks at several factors, including internal reporting, budgeting, contemporary accounting methods, and the functions of management accounting staff. The study’s conclusions emphasize the critical part played by IIS’s analytical capabilities in bringing about these adjustments. Additionally, data gathering and internal reporting are positively impacted by the quality of IIS implementation. According to the study, the introduction of specialist budgeting software has a considerable and advantageous impact on budgeting habits. By investigating the effects of Customer Relationship Management (CRM) technology on corporate success, Wang’s (2023) research contributes to marketing research. The main topics of the research are the link between CRM resources and capabilities, as well as both direct and indirect effects on performance. The research investigates how CRM skills and resources affect company success using secondary data gathered from six case firms in the UK grocery sector. The results show that CRM resources, capabilities, and performance are all positively correlated, with interactive capability being the most important element in improving CRM.
Conclusion
The evaluation emphasizes the value of information management systems in dealing with family businesses’ particular difficulties. These difficulties include incorporating family relations, preparing for the future, and assuring progress. The research focuses on process mining, knowledge management, IT incidents, trust-building, decision-making, management accounting, and the effects of globalization as they relate to information management systems. The results highlight the significance of utilizing technology, including big data, ERP systems, and CRM technologies, to optimize company operations, boost efficiency, and support sustainable development. The study also underlines the significance of customizing information management systems and comprehending the unique environment of family companies. Family enterprises may overcome obstacles and promote growth by implementing novel strategies and considering the interaction between the family and business spheres.
References
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