Purpose
Extant 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/approach
This 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.
Findings
This 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/value
This 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.
