Family businesses are often described as the backbone of the global economy. From small local retailers to multinational corporations, family-owned firms employ millions of people, contribute significantly to national economies, and often survive for generations. Yet many of these businesses share a common challenge that receives far less attention than finance, marketing, or succession planning: making the best use of leadership talent within the family itself.
A growing body of research suggests that women in family businesses continue to face barriers to senior leadership, even when they possess the skills, education, and experience needed to help run the company. Traditional expectations about family responsibilities, childcare, and caregiving can make it more difficult for women to participate fully in strategic decision-making or prepare for future leadership roles.
Researchers at the University of East London believe that digital workplace innovation could help change that. Their latest study argues that flexible working, supported by modern communication technologies, may give more women the opportunity to become active leaders within family businesses without forcing them to choose between professional ambitions and family responsibilities.
Why family businesses matter
Family-owned businesses are found in almost every industry, including manufacturing, retail, agriculture, hospitality, healthcare, technology, and finance. Some remain small enterprises serving local communities, while others grow into internationally recognised brands.
Despite their diversity, many family businesses share similar characteristics. Ownership is concentrated within one family, leadership often passes from one generation to the next, and long-term stability frequently takes priority over short-term profits.
These companies also face unique challenges. Decisions are often influenced not only by commercial considerations but also by family relationships, succession plans, and the desire to preserve a legacy built over decades.
Choosing the next generation of leaders is therefore one of the most important decisions any family business makes.
Leadership is not always shared equally
Historically, leadership positions in family firms have often been filled by male family members, even when female relatives have played important roles behind the scenes.
In many businesses, women have contributed to finance, administration, customer relationships, operations, and long-term planning while remaining less visible in formal leadership positions.
This pattern has begun to change in recent decades as more women have entered higher education, gained professional management experience, and launched successful businesses of their own. Nevertheless, researchers continue to find that women are underrepresented in senior leadership across many family-owned firms.
The reasons are complex and vary between families, cultures, and countries. They may include traditional expectations, unconscious bias, unequal caregiving responsibilities, or simply long-established succession customs.
Digital technology changes more than location
Flexible working is often associated with working from home, but modern digital workplaces involve much more than that.
Video meetings, cloud-based collaboration, shared online documents, project management software, secure messaging platforms, and virtual planning sessions allow people to participate in important discussions regardless of where they are.
For family businesses, this flexibility may prove especially valuable.
Someone caring for young children or elderly relatives may not always be able to spend long hours at company headquarters, yet they can still contribute to board discussions, review financial information, participate in strategic planning, and help guide important decisions through digital collaboration.
Rather than reducing involvement, technology can sometimes increase it.
A broader pool of leadership talent
The researchers argue that digital workplace innovation can help family businesses make better use of talent that might previously have been overlooked.
Instead of evaluating future leaders primarily by their physical presence in the office, businesses can focus more on experience, judgement, communication skills, strategic thinking, and the ability to solve problems.
This shift may benefit not only women but also family members living in different cities or countries, individuals with disabilities, and relatives balancing business responsibilities with other commitments.
The result could be leadership teams that draw upon a wider range of perspectives and experiences.
Better decisions through diverse perspectives
Management researchers have long suggested that organisations often benefit when leadership includes people with different backgrounds and viewpoints.
Diverse leadership teams may consider a broader range of risks, generate more creative ideas, and understand customer needs more completely.
Of course, diversity alone does not guarantee better decisions. Successful leadership still depends on competence, communication, trust, and effective governance.
However, excluding capable people because traditional working arrangements make participation difficult may prevent businesses from benefiting from valuable expertise already within the family.
Succession planning in a digital age
Passing leadership from one generation to the next has always been one of the greatest challenges facing family businesses.
Poor succession planning can create uncertainty among employees, disagreements within families, and concerns among customers, suppliers, and investors.
Digital collaboration tools may offer new ways for future leaders to become involved gradually.
Instead of waiting until they can relocate or commit to full-time office work, younger family members may participate in meetings, contribute to long-term planning, analyse company performance, and gain leadership experience while maintaining other personal or professional commitments.
This gradual transition may make succession smoother and help preserve valuable institutional knowledge.
Technology is not a complete solution
The researchers do not suggest that digital workplace innovation alone will eliminate gender inequalities in family businesses.
Technology can create opportunities, but organisational culture still matters.
Family businesses must also ensure that leadership appointments are based on ability, provide equal opportunities for development, encourage mentoring, and recognise contributions fairly regardless of gender.
Trust, communication, and clear governance remain essential.
Without those foundations, even the most advanced digital tools cannot create effective leadership.
Balancing flexibility and collaboration
Many organisations continue to debate the best balance between remote and office-based work.
Some tasks benefit from face-to-face interaction, particularly complex negotiations, team-building activities, and certain forms of creative collaboration.
Others can be completed just as effectively through digital platforms.
The researchers’ findings suggest that family businesses need not treat these approaches as opposites. Instead, carefully designed flexible working arrangements may allow companies to combine the strengths of both.
Looking ahead
Digital workplace technologies have already transformed how many businesses communicate and collaborate.
The University of East London study suggests that their impact may extend much further than improving convenience or reducing commuting time.
By making leadership participation more flexible, these technologies could help family businesses identify talented leaders who might previously have found it difficult to take part fully in strategic decision-making.
Whether every family business chooses to embrace this approach will depend on its culture, priorities, and circumstances.
Yet as technology continues to reshape the modern workplace, the definition of what an effective business leader looks like may also continue to evolve.
For family businesses planning for future generations, that evolution could open the door to a broader, more diverse pool of leadership talent—benefiting not only women entrepreneurs but the businesses themselves.
Sources:
Gelaidan, H. M., & Al-Haddad, L. (2026). Women entrepreneurs and their leadership in family business: Insights from digital workplace innovation. Strategic Leadership. Emerald Publishing. https://doi.org/10.1108/SL-04-2026-0200
University of East London. (2026). Flexible working could help more women lead family businesses, researchers say.
