Family business, servitization, and performance: Evidence from Portugal

Maria João Guedes*, Pankaj C. Patel, Christian Kowalkowski, Pejvak Oghazi

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

6 Citations (Scopus)

Abstract

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.

Original languageEnglish
Article number122053
Peer-reviewed scientific journalTechnological Forecasting and Social Change
Volume185
ISSN0040-1625
DOIs
Publication statusPublished - 12.2022
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Family firms
  • Governance
  • Performance
  • Profitability
  • Servitization

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