Industry 4.0 digital technologies and international performance: The role of family management in Italian firms

This paper advances the international business literature by providing robust empirical evidence on how the adoption of Industry 4.0 digital technologies affects firms’ international performance. Drawing on panel data of Italian firms and a matched Difference-in-Differences design, we show that only information digital technologies – such as big data analytics and the Internet of Things – positively impact international performance, while robotics does not. Using a dynamic capabilities perspective, we argue and quantitatively test that digitalisation is most effective if paired with high-quality managerial structures, that is, when external, non-family professionals manage firms. A complementary qualitative inquiry of five case studies further illustrates the mechanisms through which external managers enable firms to capture the strategic value of digital investments in international markets. By isolating the role of distinct digital technologies and governance structures, the study offers new insights into the micro-foundations of digital-enabled internationalisation.