Scaling Up Dynamics in Family Businesses: Case Study in the Digital Era.

This thesis explores the unique challenges family businesses face during scaling-up operations, an under-researched area within business studies, particularly within the digital era's evolving landscape. Utilizing a qualitative methodology, this research engaged in in-depth interviews with key figures from a single case study family business. This approach provided nuanced insights into the internal dynamics and potential conflicts that arise when family-owned businesses attempt to scale operations. The findings reveal that the industry in which a family business operates and its generational stage significantly influence its approach to scaling. Key issues identified include varied financing strategies and a preference for funding from sources that provide not only capital but also trust and support. Unlike traditional startups, family businesses displayed a marked hesitance towards venture capital due to its often intrusive nature and short-term expectations. The study concludes that family businesses are navigating complex terrains of maintaining familial control and legacy while attempting to adapt to the demands of rapid market expansion. These firms seek patient capital that aligns with their long-term business visions and cultural values, highlighting a distinct divergence from more conventional growth-focused enterprises. This research contributes to the field by illuminating the subtle yet profound challenges family businesses face in scaling efforts. It underscores the need for more targeted research into how these businesses can balance tradition and innovation, providing valuable insights for academic, practical, and policy-making spheres in the context of the digital transformation era.