Abstract

In today’s digital economy, firm competitiveness increasingly depends on the ability to integrate and leverage digital technologies for efficiency, innovation, and customer engagement. This study investigates the relationship between digital transformation and competitiveness among family-owned businesses (FOBs) in Anambra State, Nigeria. Family businesses constitute a significant share of the economy but often face structural and generational challenges that hinder digital adoption, including limited resources, lack of digital skills, and reliance on traditional business models. Using a quantitative research approach, the study employed a cross-sectional survey design with a sample of 175 registered FOBs. Data were collected via structured online questionnaires and analyzed using Spearman’s Rank Correlation Coefficient at a 5% significance level. Findings indicated that digital transformation significantly enhances firm competitiveness (rho = 0.536, p < 0.05), demonstrating its critical role in improving operational efficiency, customer engagement, and long-term sustainability. Additionally, results revealed that top management support is positively associated with digital transformation adoption (rho = 0.615, p < 0.05), underscoring the importance of leadership commitment in overcoming internal resistance and facilitating organizational change. The study highlights that while FOBs face barriers such as generational gaps and cost of technology adoption, proactive leadership and strategic investment in digital tools can drive competitive advantage. The study concluded that digital transformation is no longer optional but a strategic necessity for FOBs in developing economies. It recommended integrating digital strategies into succession planning, fostering a culture of innovation, and leveraging scalable technologies to ensure sustainable competitiveness in a rapidly evolving marketplace.