Dynamic capabilities at the digital-succession nexusMihotić, Lucija (Avtor) Pfajfar, Gregor (Avtor) family businessdigitalizationartificial intelligenceresiliencedigital transformationsuccessiondynamic capabilitiesdigital intrapreneurshiporganizational resilienceturbulent environmentsemerging economiesCroatiaWhile digital transformation is crucial for the sustainability of family businesses, existing frameworks inade- quately explain how digitalization capabilities develop during succession, particularly in emerging markets. Through a qualitative comparative case study of six Croatian family firms undergoing simultaneous first-time succession and digitalization, this study examines how founder engagement influences the development of dy- namic capabilities (DC). Drawing on DCs framework, this study identified three patterns: (1) actively supportive founders enable comprehensive capabilities (sensing, seizing, and transforming) through structured efforts, facilitating successful transitions (2) traditional control with selective permission (i.e., passive support by founders); yields moderate capabilities for partial adaptation; and (3) founders' resistance, despite successors’ enthusiasm, limits firms to basic sensing. These manifest through three pathways: technological adaptation fosters integrative capabilities, external knowledge integration builds absorptive capacity, and internal devel- opment enhances organizational learning, each shaped by founder-successor dynamics. This research advances theory by revealing how family relationships can override market forces in capability building, thereby chal- lenging assumptions about the inevitability of digital technology. Findings emphasize that success requires aligned intergenerational support, with founder attitudes as critical gatekeepers. The Croatian con- text—characterized by institutional voids and cultural tensions—makes these dynamics particularly visible for emerging economies.20262026-04-10 13:29:57Članek v reviji181649sl