Who decides the digital future? Intergenerational authority and technology adoption in family MSMEs

Purpose Digital technologies are commonly framed as neutral instruments that enhance efficiency, transparency and inclusion within micro, small and medium enterprises (MSMEs). However, this assumption overlooks the socially embedded nature of digitalisation, particularly in family-owned firms where strategic decisions are shaped by intergenerational authority and negotiated control. Focusing on Indian MSMEs, this study aims to explore how digital initiatives are negotiated, contested and enacted within hierarchical family business contexts. Design/methodology/approach Using interpretative phenomenological analysis, the study analyses paired in-depth interviews with older and younger generations from family-owned MSMEs across diverse regional and community contexts in India. This intergenerational and phenomenological approach enables an exploration of lived experiences and meaning-making processes surrounding digital technology adoption. Findings The study reveals five themes and their sub-themes: digital divide across ages, digitalisation as an uneven enabler, barriers beneath the bandwidth, catalysing digital inclusion and beyond technology: the cultural challenge of change. Together, these themes reveal that digital transformation emerges as uneven and negotiated rather than linear or inclusive. Research limitations/implications The study extends technology adoption models (TOE/TAM/UTAUT) by dismantling the “Unitary Actor Fallacy” and demonstrating that adoption decisions are heavily constrained by intergenerational power dynamics. It further enriches socioemotional wealth theory by showing how senior founders prioritise relational control and legacy preservation over operational digital efficiency. Given the small, purposive sample of 27 participants, the findings offer deep, transferable insights rather than statistical population generalisability. Practical implications The findings suggest that effective digitalisation policies and support programmes should be tailored to the generational and contextual realities of family-owned MSMEs. Policymakers, industry associations, incubators and digital platform providers can promote technology adoption by simplifying systems, facilitating intergenerational learning and designing solutions that address trust and usability concerns. Originality/value The study identifies how platform-based and compliance-driven digital systems can reinforce existing generational power asymmetries within family-owned MSMEs. By reframing digital technology adoption as a negotiated, uneven and relational process, the study advances technology adoption theory, family business research, business community research and the literature on MSME digitalisation. It calls for intergenerationally inclusive and context-sensitive digital policies, cautioning against one-size-fits-all digitalisation strategies in emerging economies.