Broadening the business model construct: Exploring how family-owned SMEs co-create value with external stakeholders

Abstract

This paper explores how family-owned SMEs and their external stakeholders co-create value for end consumers. Our empirical data consists of 22 semi-structured interviews with the senior management of family-owned SMEs, supplemented by 1107 items of archival data. The findings shed light on precisely how contemporary family business practitioners can expand their business model (through external orientation and stakeholder collaborations). In doing so, we enrich SME literature by offering new empirical research findings from the unique perspective of how family-owned SMEs collaborate with specific stakeholder groups. We also expand the current business model literature by providing a more nuanced understanding of the SME business model construct, and advance service-dominant logic theory through the presentation of our theoretical model and propositions. Ultimately, this paper extends insights into value co-creation with stakeholders as an extension of the business model construct, whilst highlighting practical implications for family-owned SME practitioners.