Evaluation of Challenges to Modernization of Family Businesses: Grey Relational Analysis

Family businesses have contributed to the economic growth of economies globally. Family businesses face unique challenges that affect their efforts to modernize their operations and compete effectively on the global market. This study, therefore, aims at evaluating challenges affecting family business efforts to modernize. Using survey, the study collected primary data and evaluated twelve challenging factors using the Dynamic Grey Relational Analysis model. The findings indicate that there are several challenges affecting the modernization of family business, including resistance to change, rapid advancement of technology, rigid organizational structures, and succession planning. The study provides insight into how family businesses can reconcile traditional features with modern characteristics for sustainability in the long run.