Business Model Transformation in Coastal Family Firms: Balancing Socioemotional Wealth, Digitalization, and Climate Adaptation

Authors

Keywords:

Family Business, Socioemotional Wealth, Digital Transformation, Climate Adaptation, Business Model Innovation, Coastal Resilience

Abstract

Coastal family firms play a crucial role in sustaining local economies while preserving intergenerational knowledge and family values. However, these businesses are increasingly challenged by digital transformation, climate change, and the need to maintain socioemotional wealth (SEW). Despite the growing literature on family business transformation, limited research has examined how coastal family firms in developing regions navigate these competing pressures. This study explores the dynamics of business model transformation among coastal family firms in Kendari City, Indonesia, using a mixed-methods approach with a multiple-case study design involving seven family-owned enterprises. Data were collected through in-depth interviews, observations, document analysis, and a digital adoption survey. The findings indicate that coastal family firms experience a triple tension between preserving family values, embracing digital transformation, and adapting to climate-related challenges. Most firms adopt hybrid business models, rely on frugal innovation, and remain at the early stages of digital transformation due to concerns about family control. Next-generation family members play an essential role in facilitating innovation despite resistance from senior generations. This study extends Socioemotional Wealth Theory by introducing the concept of Coastal Family Business Resilience (CFBR), emphasizing the integration of family values, digital capability, and climate resilience to support sustainable business transformation.

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Published

2026-08-11

Issue

APSKI ICE Vol 04, Ed 01 (2026)

Section

Articles

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Copyright (c) 2026 APSKI International Conference on Association of Indonesian Entrepreneurship Study Programs

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