TY - JOUR
T1 - Family business, servitization, and performance
T2 - Evidence from Portugal
AU - Guedes, Maria João
AU - Patel, Pankaj C.
AU - Kowalkowski, Christian
AU - Oghazi, Pejvak
N1 - Funding Information:
Maria João Guedes acknowledges financial support from the Foundation of Science and Technology (Project funded: UIDB/04521/2020 ).
Publisher Copyright:
© 2022 The Authors
PY - 2022/12
Y1 - 2022/12
N2 - Drawing on the servitization and family business literature, we ask whether family governance improves or worsens performance through servitization. Given the preference to preserve socio-emotional wealth, servitization in family firms presents a double-edged sword. That is to say, a preference to preserve socio-emotional wealth facilitates the development of relationships with service-related stakeholders, but it may also prevent family firms from diluting their socio-emotional wealth through greater service-related collaboration with outsiders. In a sample of 35,329 manufacturing firms (13,755 family firms and 21,574 non-family firms from 2010 to 2018) in Portugal, we find that family firms have lower levels of servitization, and they achieve lower performance through servitization. These findings are robust to alternative performance measures and carry important implications for the servitization and family business literature.
AB - Drawing on the servitization and family business literature, we ask whether family governance improves or worsens performance through servitization. Given the preference to preserve socio-emotional wealth, servitization in family firms presents a double-edged sword. That is to say, a preference to preserve socio-emotional wealth facilitates the development of relationships with service-related stakeholders, but it may also prevent family firms from diluting their socio-emotional wealth through greater service-related collaboration with outsiders. In a sample of 35,329 manufacturing firms (13,755 family firms and 21,574 non-family firms from 2010 to 2018) in Portugal, we find that family firms have lower levels of servitization, and they achieve lower performance through servitization. These findings are robust to alternative performance measures and carry important implications for the servitization and family business literature.
KW - 512 Business and Management
KW - Family firms
KW - Governance
KW - Performance
KW - Profitability
KW - Servitization
UR - http://www.scopus.com/inward/record.url?scp=85138820164&partnerID=8YFLogxK
U2 - 10.1016/j.techfore.2022.122053
DO - 10.1016/j.techfore.2022.122053
M3 - Article
AN - SCOPUS:85138820164
SN - 0040-1625
VL - 185
JO - Technological Forecasting and Social Change
JF - Technological Forecasting and Social Change
M1 - 122053
ER -