Beyond the nexus family – business: introducing the family business service ecosystem

Abstract

PurposeExtant family business research focuses on the understanding of value creation through the binary interactions between the family and its business (the family – business nexus). This article addresses this issue by expanding the understanding of value creation beyond the family-business nexus to that of value creation among a wider set of stakeholders (the family business service ecosystem). It recognizes the multi-faceted nature of family businesses and conceptualizes a value creation process through a broader scope of internal and external stakeholders.Design/methodology/approachThis research theoretically connects Business Model Innovation (BMI) and Service dominant logic (SDL) as foundations of an ecosystem approach of value creation established through collaboration, coproduction and co-creation based on Value in Use (ViU). The authors then present the FB Service Ecosystem BM.FindingsThis research generates an overarching model of value creation and integration that reflects and enacts the purpose of the family firm’s project through interactions with ad hoc internal and external actors as possible Third Avenue of value creation, transcending the family versus business paradox. Termed FB Service Ecosystem, this overarching model can be at the forefront of economic, ecological and societal transition, by tacitly transmitting such BMs through their networks of stakeholders. The FB Service Ecosystem is important because it can support the transition of economies and societies based on service, collaboration and meeting multiple stakeholder needs.Originality/valueThis research addresses the dichotomy between financial and non-financial outcomes and between agency and stewardship. It transcends this paradox to offer an inclusive value creation perspective considering a wider set of internal and external stakeholders based on reciprocal service provision and co-creation of mutual value, foundations of service dominant logic, among actors of a service ecosystem federated by and around the family business, termed Family Business Service Ecosystem.

Food for thought: Family Entrepreneurship in four questions

“…However, the assumption that infinite growth on a finite planet is possible, or even desirable, is increasingly challenged (Parrique, 2022;Raworth, 2017). The shift towards sustainable and circular business models has begun (Andreini et al, 2021), and family businesses and business families have a key role to play (Clauß, et al, 2022;Randerson, 2022;Randerson & Estrada-Robles, 2023). Philanthropy and engaging in sustainable business activities are examples of entrepreneurial behaviors with outcomes related to sustainability and social responsibility (Randerson et al, 2016;Randerson, 2022).…”

“…This shift needs to be accelerated and generalized for our planet to remain inhabitable (see IPCC synthesis report 2023). Considering the weight of family businesses in national economies worldwide, as well as the prevalence and power of business families, by transitioning towards family business service ecosystems, families and their businesses can play a foundational role in transitioning towards economies and societies that are more collaborative, just, and sober (Randerson & Estrada-Robles, 2023).…”

“…Indeed, it is well known that Family Businesses are the most common form of organization worldwide: they contribute to economies and societies through the creation of wealth and jobs (Astrachan and Shanker, 2003;Pieper et al, 2021). They are also active in philanthropic and other actions often linked to the third sector (Bergamaschi & Randerson, 2016;Clauß et al, 2022;Randerson, 2022), and are well positioned as potential springboard towards societies and economies that are more collaborative, just and sober (Randerson & Estrada-Robles, 2023). Moreover, family businesses are only the visible tip of the iceberg: business families and their members support this dynamic (Bettinelli et al, 2014).…”

Innovation and Family Business in the Digital Age: A Systematic Literature Review

“…At the academic level, we find a fundamental opportunity that would be the inclusion of FB within economic theory for research in universities. (Johansson et al, 2020), sustained by the human resources of the MZ generation (Kim & Kim, 2022); however, the operational or the academic is insufficient in the digital age and, as real opportunities, there is the creation of ecosystems for co-creation of value, collaborative agreements, open FBs and the linking of family value and business value (Randerson & Estrada-Robles, 2023;Csákné Filep et al, 2023;Lambrechts et al, 2023;De Groote et al, 2023).…”

Family entrepreneurship: a perspective article

“…However, the assumption that infinite growth on a finite planet is possible, or even desirable, is increasingly challenged (Parrique, 2022; Raworth, 2017). The shift toward sustainable and circular business models has begun (Andreini et al ., 2021), and family businesses and business families have a key role to play (Clauß et al ., 2022; Pratono and Han, 2022; Randerson, 2022; Randerson and Estrada-Robles, 2023). Philanthropy and engaging in sustainable business activities are examples of entrepreneurial behaviors with outcomes related to sustainability and social responsibility (Bergamaschi and Randerson, 2016; Kuttner et al ., 2021; Randerson et al ., 2016; Randerson, 2022).…”