It is estimated that about 40 percent of US family-owned businesses survive into second
generation businesses, but only about 13 percent are passed down successfully to a third
generation. One of the main reasons for this is that technological change moves so swiftly that it
bypasses the older generation. “Unless the next generation is poised to update, and can get buy-
in from longtime employees wedded to ‘the way we always did it,’ a business can quickly become
obsolete.” [8] It is understood that family businesses will have different technology needs
depending on their size, industry, and growth objectives. For many family businesses, however,
the move to greater technology integration should be seen as a natural part of business
evolution.
With respect to e-business and e-commerce, the commitment of a family business to digital
technology will be a necessary precursor to the integration of e-business solutions.