The findings are particularly relevant as companies worldwide accelerate the adoption of artificial intelligence (AI), cloud computing, automation, and data-driven services. Many family-owned businesses are suppliers, partners, or subsidiaries within multinational corporate ecosystems. Their ability to adapt to digital change increasingly influences their long-term competitiveness and resilience.
Why Digital Transformation Matters
Across industries, multinational service corporations are investing heavily in digital technologies to improve efficiency, personalize customer services, and expand into international markets. Digital transformation is no longer limited to adopting new software—it involves changing organizational culture, business strategy, leadership, and workforce capabilities.
Family businesses face a unique position within this transition. They often possess flexible governance structures and a long-term outlook, yet many struggle with limited digital expertise, financial constraints, and a preference for traditional management practices.
According to the researchers, these contrasting characteristics make family businesses both vulnerable to disruption and uniquely positioned to benefit from digital transformation.
How the Study Was Conducted
Amelia Fransisca and Hadi Cahyadi used a qualitative research design based on a systematic literature review and theoretical analysis.
Instead of collecting survey responses or experimental data, the researchers analyzed:
- Peer-reviewed scientific journals
- Academic books
- Corporate annual reports
- Official publications
- Business case studies related to multinational service corporations and family enterprises
The information was evaluated using descriptive qualitative analysis, allowing the researchers to identify recurring patterns, major challenges, strategic opportunities, and practical implications across existing studies.
Key Findings
The study identifies several major obstacles that organizations face during digital transformation.
1. Digital skills remain the biggest challenge
Many multinational service companies have invested in advanced technologies such as Artificial Intelligence, Cloud Computing, and Big Data Analytics. However, employee skills often fail to keep pace with technological advancement.
The researchers found that insufficient digital literacy frequently prevents organizations from fully utilizing their digital infrastructure.
2. Organizational resistance slows transformation
Technology alone cannot transform a business.
Employees often resist automation because they fear losing familiar work routines or even their jobs. As a result, organizational culture becomes just as important as technology when implementing digital change.
3. High investment and cybersecurity risks
Digital transformation requires significant investment in technology infrastructure while simultaneously increasing the need for strong cybersecurity and compliance with international data protection regulations.
For multinational corporations operating across multiple countries, these requirements increase both financial and operational complexity.
Digital Transformation Creates Significant Opportunities
Despite these obstacles, the research highlights several strategic benefits.
Organizations that successfully implement digital transformation can:
- Improve operational efficiency through process automation
- Reduce transaction costs and human error
- Deliver highly personalized customer services using data analytics
- Expand into international markets through digital platforms
- Accelerate AI adoption across business operations
The study highlights Microsoft Copilot as one example of AI already supporting multinational service companies by assisting employees with information retrieval, multilingual reporting, presentation design, and everyday productivity tasks.
Digital platforms also reduce dependence on physical offices, allowing companies to serve global customers more efficiently than traditional international expansion models.
Family Businesses Hold an Unexpected Advantage
Although family businesses often face financial and technological limitations, the research suggests they possess several strengths that large corporations sometimes lack.
These include:
- Flexible governance structures
- Faster decision-making
- Strong long-term strategic orientation
- High organizational commitment
- Greater adaptability during change
According to the researchers, these characteristics allow many family businesses to respond more quickly than highly bureaucratic multinational organizations when leadership supports innovation.
Rather than viewing tradition and technology as competing priorities, successful family businesses integrate both to strengthen long-term sustainability.
Digital Capabilities Become Strategic Assets
The study reinforces the idea that digital capabilities are no longer simply technical resources—they have become strategic assets that determine competitive advantage.
Drawing on the Resource-Based View (RBV) and Dynamic Capabilities theories, Amelia Fransisca and Hadi Cahyadi argue that organizations gain sustainable advantages when they continuously develop digital competencies instead of merely purchasing new technologies.
As the authors explain, businesses become more resilient when technological innovation is aligned with organizational culture and socioemotional values rather than implemented as technology alone.
For family enterprises, this means preserving family values while embracing digital innovation instead of treating the two as opposing goals.
Practical Implications for Business and Policymakers
The findings offer practical guidance for multinational corporations, family businesses, and policymakers.
For multinational service companies, the study recommends investing not only in technology but also in workforce development and digital onboarding programs that include supply-chain partners, especially family-owned businesses.
Family businesses are encouraged to:
- Invest in digital training.
- Adopt AI to automate repetitive administrative tasks.
- Expand market access through digital platforms.
- Empower younger generations to lead digital initiatives while maintaining core family values.
Meanwhile, governments can support digital transformation by strengthening digital infrastructure, encouraging technology adoption, and developing policies that help family enterprises modernize without losing their long-term stability.
The researchers emphasize that successful digital transformation depends as much on people, leadership, and organizational culture as it does on technological investment.
Author Profile
Amelia Fransisca is a researcher at Tarumanagara University whose academic interests include digital transformation, multinational service corporations, family businesses, artificial intelligence, and strategic management.
Hadi Cahyadi, is a lecturer and researcher at Tarumanagara University, specializing in business strategy, corporate governance, organizational management, and digital transformation in global business environments.
Source
Article Title: Digital Transformation in The MNC Services Sector: Identifying Challenges and Opportunities for Family Businesses
Authors: Amelia Fransisca, Hadi Cahyadi
Journal: International Journal of Economic, Finance and Business Statistics (IJEFBS)
Publication Year: 2026
DOI: https://doi.org/10.59890/ijefbs.v4i3.10
URL: http://journalijefbs.my.id/index.php/ijefbs
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