Showing papers on "Service-dominant logic published in 2013"

Critical service logic: making sense of value creation and co-creation

Abstract: Because extant literature on the service logic of marketing is dominated by a metaphorical view of value co-creation, the roles of both service providers and customers remain analytically unspecified, without a theoretically sound foundation for value creation or co-creation. This article analyzes value creation and co-creation in service by analytically defining the roles of the customer and the firm, as well as the scope, locus, and nature of value and value creation. Value creation refers to customers’ creation of value-in-use; co-creation is a function of interaction. Both the firm’s and the customer’s actions can be categorized by spheres (provider, joint, customer), and their interactions are either direct or indirect, leading to different forms of value creation and co-creation. This conceptualization of value creation spheres extends knowledge about how value-in-use emerges and how value creation can be managed; it also emphasizes the pivotal role of direct interactions for value co-creation opportunities.

The Complexity of Context: A Service Ecosystems Approach for International Marketing:

Abstract: To strengthen the theoretical foundations of international marketing (IM), the authors propose a framework for conceptualizing the complexity of the context that frames international and global exchange systems. In particular, they apply a service ecosystems approach, which is grounded in service-dominant logic and its foundational premise that service is the basis of all exchange. The proposed framework provides insight into the nature of context, a distinguishing feature of IM. The authors argue that the embeddedness of social networks and the multiplicity of institutions within a service ecosystem influence the complexity of context. They articulate the way the (co)creation of value influences and is influenced by the enactment of practices and the integration of resources through various levels (micro, meso, and macro) of interaction and institutions. They introduce the concept of “value in cultural context” to emphasize the influence of the symbolic and social components of context. The arti...

China's “smart tourism destination” initiative: A taste of the service-dominant logic

Abstract: China's “smart tourism destination” initiative has sparked some research interests lately. This essay suggests taking the service-dominant logic as an alternative angle to understand the rationale and implications of smart tourism development in China.

A new conceptualization of service innovation grounded in S‐D logic and service systems

Abstract: Purpose – The aim of this paper is to conceptualize service innovation through a service‐dominant logic (S‐D logic) lens and a service system foundation.Design/methodology/approach – This conceptual paper offers a service‐dominant logic lens and a structuration theory approach emphasizing an actor perspective on service innovation. Since the value of innovation unfolds in practice, this paper will use customer to denote the key actor in co‐creating value in context.Findings – The paper shows how a resource constellation in a service system is reconfigured and thus explains service innovation from the lens of S‐D logic, emphasizing customers' value co‐creation of value in practices. The focus is on the interdependencies between the configuration of resources in a service system and schemas that shape customers and other actors when integrating resources and co‐creating value.Research limitations/implications – There is a need to discuss service innovation in a social constructivist view to better understan...

Adopting self-service technology to do more with less

Abstract: Purpose – Employees have traditionally played a major role in the customer ' s service experience. Yet self-service technology (SST) replaces the customer-service employee experience with a customer-technology experience. This paper seeks to use a service-dominant logic lens to gain fresh insight into the consumer experience of SST. In particular, it aims to consider the resources that are integrated when consumers use SSTs, their co-production role and what might constitute value. Design/methodology/approach – The paper presents findings from 24 semi-structured interviews that focus on the everyday experiences of consumers in using SST. Both genders and all socio-economic categories within all adult age groups from 18 to 65+ were included. Findings – There is a danger that organizations embrace SST as an economic and efficient mechanism to “co-create” value with consumers when they are merely shifting responsibility for service production. The paper identifies risks when customers become partial employee...

It is all about services-fundamentals, drivers, and business models

Abstract: Service economy, service science, service-dominant logic and servitization are apparently related terms. All of them emerged and are located in different disciplines, which do not ease things at all. Accordingly, this paper provides on the one side a fundamental theoretical background on these topics, and on the other side facilitates subsequent research by providing some reference points.

The value of health and wellbeing: an empirical model of value creation in social marketing

Abstract: Purpose The purpose of this paper is to investigate the role of multiple actors in the value creation process for a preventative health service, and observe the subsequent impact on key service outcomes of satisfaction and customer behaviour intentions to use a preventative health service again in the future. Design/methodology/approach An online self-completion survey of Australian women (n=797) was conducted to test the proposed framework in the context of a free, government-provided breastscreening service. Data were analysed using Structural Equation Modelling (SEM). Findings The findings indicate that functional and emotional value are created from organisational and customer resources. These findings indicate that health service providers and customers are jointly responsible for the successful creation of value, leading to desirable outcomes for all stakeholders. Practical implications The results highlight to health professionals the aspects of service that can be managed in order to create value with target audiences. The findings also indicate the importance of the resources provided by users in the creation of value, signifying the importance of customer education and management. Originality/value This study provides a significant contribution to social marketing through the provision of an empirically validated model of value creation in a preventative health service. The model demonstrates how the creation and provision of value can lead to the achievement of desirable social behaviours - a key aim of social marketing.

Employee Collaboration, Learning Orientation, and New Service Development Performance:

Abstract: Businesses rely on knowledge interfaces to gather and integrate knowledge that drives innovation and builds competitive advantage. But key knowledge interfaces such as cross-functional teams (CFTs), frontline employees (FLEs), and learning orientation have not shown consistent effects on innovation outcomes in prior research. This study addresses that problem by testing a mediation model that extends the service-dominant logic service innovation framework developed by Ordanini and Parasuraman. Based on analyses of 160 new service development (NSD) projects, the authors find that CFTs, FLEs, and learning orientation consistently influence NSD sales and process efficiency outcomes when they first create a service having (1) superior attributes and expert frontline employee service delivery (service marketability) and/or (2) a well-targeted launch with formal promotion to internal and external markets (launch effectiveness). Those NSD project characteristics in turn yield favorable new service performance re...

Electronic Service Quality and Value: Do Consumer Knowledge-Related Resources Matter?

Abstract: Electronic service quality (ESQ) is essential for explaining consumer value perceptions in B2C e-commerce contexts. However, we argue that focusing too narrowly on ESQ without considering consumer knowledge-related resources could lead managers to devise myopic strategies. Our research is inspired by, and intends to contribute to, service-dominant logic, service logic, and service science. These perspectives suggest that firms and consumers cocreate value by integrating their resources. However, the literature in these areas relies on conceptual development, and further empirical research is needed. The empirical study reported here is the first cross-sectional test that confers similar salience to both consumer resources, in the form of consumer expertise (and its antecedents), and firm resources, as represented by ESQ (and its antecedents), to explain value perception in a B2C e-commerce context. We provide evidence that both consumer expertise and ESQ directly and positively affect value perception, th...

Unpacking IT use and integration for mass customisation: a service-dominant logic view

Abstract: Significant changes in customer demands for individualised offerings are causing firms to move away from mass production strategies toward customisation. Many firms struggle in this migration because the requirements for mass customisation (MC) differ greatly from those needed for mass production. As firms strive to optimise their interactions with customers and suppliers to produce highly customised offerings at near mass production prices, IT use along with customer and supply integration are important organisational competencies. Research studies explore many facets of MC but, in regard to IT use for customer and supplier integration, most focus on specific activities within the product design and development process. This study extends the IT-enabled organisational capabilities line of research, using data collected from 220 manufacturers, to explore IT use in a comprehensive sense for planning, infrastructural, and operational activities in various business processes intended to achieve MC. These fin...

Co-production and self-service: The application of Service-Dominant Logic

Abstract: Service-Dominant Logic (S-D logic) theory and related literature is reviewed to demonstrate S-D logic's potential to provide new insights for understanding an important contemporary issue in service delivery: the application of self-service technology (SST) to customer service. S-D logic considers operant resources to be the key to gaining a competitive advantage. Consequently, the most important aspect of the application of SST is the requirement for the customer to provide the operant resource at the point of transaction. It is argued that the implementation of SST could be improved by encompassing an understanding of the resources available to the customer and the value (or lack of value) experienced by the customer in using SST. Gaps in existing knowledge are identified, particularly in relation to the application of SST in business-to-business (B2B) contexts. An agenda for further research is outlined and a range of management implications are discussed.

The Co-Creation of Value-in-Cultural-Context

Abstract: Purpose This chapter explores the nature of the cultural context that frames value creation and provides insight to the way in which value is collaboratively created, or co-created, in markets. Methodology/approach We develop a conceptual framework and research propositions for studying the co-creation of value-in-cultural-context through the intersection of consumer culture theory (CCT) and service-dominant (S-D) logic and the integration of a practice-theoretic approach for value co-creation. Research implications The integration of CCT, S-D logic, and practice theory provides a conceptual framework for studying the co-creation of value among multiple stakeholders and the (re)formation of markets. Practical implications Drawing on this framework, marketers can contribute to the co-creation of new markets by influencing changes in cultural contexts – practices, norms, meanings, and resources – that frame value co-creation and exchange. Originality/value of chapter This chapter explores the integration of CCT and S-D logic by focusing on value co-creation and applying a practice approach to further weave together these distinct research areas. In addition, the proposed framework elaborates the conceptualization of value-in-context to consider the cultural context that influences and is influenced by the co-creation of value.

Reconceptualizing Resources: A Critique of Service-Dominant Logic

Abstract: This article examines the interactive relationship between intangible, human capabilities (operant resources) and tangible, physical assets (operand resources) in an era of global interconnectednes...

Non-industrial Private Forestry Service Markets in a Flux: Results from a Qualitative Analysis on Finland

Abstract: Previous research on European forestry service markets is scarce and mainly focused on analysing external market environment and modelling of timber selling behaviour of non-industrial forest owners (NIPFs). In this study, we aim to create a broader understanding about business perspectives of forestry service markets covering the whole array of market and institutional based services offered to the NIPFs in case of Finland. The more specific empirical objective of the paper is to describe market drivers and underlying challenges in existing and potential service business models based on the concepts of service-dominant logic and dynamic capabilities. Using a qualitative approach and 22 thematic expert interviews in service organisations, we strive to analyse the drivers and opportunities for creating new services within the NIPF market and also build insight in possible barriers for new service value creation. According to our results, the ongoing structural changes offer new opportunities to change traditional mindsets and search for new types of offerings that support the renewal of this traditional forestry sector. As one of the major barriers for new innovations we identified the dominant role of established organisations securing their current positions, mainly driven by the forest industry timber procurement needs. From a managerial perspective, the changing institutional base of the current service organisations may facilitate new innovative business start-ups in addition to enhancing the strategic capabilities and competitiveness of the established firms in Finnish forestry sector.

Extending customer relationship management: from empowering firms to empowering customers

Abstract: Purpose – The focus of customer relationship management (CRM) literature has been predominantly on the firm perspective and on IT, not on customer or service orientation and value co‐creation. This paper seeks to explore and analyse contemporary CRM frameworks and suggests future research directions. To achieve this, a thorough literature review on CRM is conducted focusing on recent advances within CRM. This provides a good basis for critically analysing the current status of both CRM theory and practice.Design/methodology/approach – The paper reviews CRM literature published 2003‐2011. Based on the literature review, it introduces a conceptual framework of the changing role of customer data in the CRM framework.Findings – Literature has not adequately addressed the role of the emerging service orientation, value co‐creation and the opportunities provided by new technology and communication channels. Drawing on a thorough CRM literature review, we argue that a fundamental change in CRM thinking is needed...

The S-D logic phenomenon-conceptualization and systematization by reviewing the literature of a decade(2004–2013)

Abstract: Service-Dominant (S-D) Logic has developed as a leading approach in contemporary service science literature. The notion was introduced in 2004, emerged after the service science field experienced several decades of development. Thus, the detailed literature analysis on S-D Logic (primarily in the form of research articles published in relevant journals) since 2004 is undertaken in this paper. The major business-economic scientific databases were scanned to extract key studies dealing with S-D Logic. These publications were analyzed systematically regarding author (s), journal and year of publication, research area, applied research methodologies, keywords and output. Findings reveal key players, discuss the contribution of empirical results, and point out the broad applicability of S-D Logic. The analysis serves as powerful evidence confirming the augmented ‘momentum’ of S-D Logic. Greater than before attention as well as an increasingly interdisciplinary focus for S-D grounded research efforts are observed, emphasizing the importance of a currently dominant view on mutual service exchange and value co-creation.

Measuring Value-in-Context from a Service-Dominant Logic’s Perspective

Abstract: Purpose – Service-dominant logic (S-D logic) has conceptualized value as value-in-context where context is defined as a “set of unique actors with unique reciprocal links among them” (Chandler & Vargo, 2011, p. 40). The chapter proposes a means of measuring value-in-context as experienced by an actor while integrating resources, called the ValConRIA model (value-in-context of resource integrating activities).Design/methodology/approach – Value emerges from experiencing interactions in a service-for-service exchange. The actor perceives value as emerging with his activities and hence experiences the emerging value as connected to either his activities or the items supporting his activities or the people he is interacting with. We call these realms of experience the I (–Me) realm, the I–It and It–I realm, and the I–You and You–I realm, composing five dimensions. An exploratory principal component analysis supports this structure. The measurement process has been tested for reliability and validity and applied to different activities: using a laptop, using cigarettes (=smoking), using a smartphone, and using Facebook.Findings – According to where the actor mostly experiences the value emergence, five dimensions of value-in-context have been identified using principal component analysis. The measurement scale shows high construct reliability and discriminant validity.Implications – Being able to measure value-in-context as proposed by S-D logic brings S-D logic into practice. Practitioners can use the measurement process to identify value their customers co-create. The proposed means of measuring value-in-context does not measure the value of things but instead values as it emerges from an actor’s activities, exchanging service for service.Value/originality – To our knowledge this chapter is the first to propose a means of measuring value-in-context, which is based on S-D logic.

The Service-Dominant Ecosystem: Mapping a Service Dominant Strategy to a Product-Service Ecosystem

Abstract: Nowadays product-oriented companies are facing the need to focus on the service rather than the product alone. By following a Service-Dominant Strategy, we need to focus on the ecosystem embodying the collaboration to provide such a service. This collaborative perspective on value creation and value sharing is the foundation for designing new business models within the ecosystem. We take the lessons learned in the car-leasing domain on the development of a Service-Dominant Strategy to design a tool supporting the transition from product focus to Product-Service ecosystems.

Why is service‐dominant logic based service system better?

Abstract: Purpose – Research suggests that service‐dominant designs are superior to goods‐dominant; but why? The purpose of this paper is to answer three questions. First, in what way is a service system based on service‐dominant logic (SDL) superior to one based on goods‐dominant logic (GDL)? Second, which characteristics of the service system facilitate the co‐creation of value‐in‐context as perceived by the customer? Third, how do customers describe the contents of these characteristics?Design/methodology/approach – In an experiment, the authors compared two different service systems designed with different mindsets. The experiment was carried out with a group of habitual bus travellers to plan a specific journey using two online service systems by two different organizations; one exhibited a goods‐dominant mindset, and the other a service‐dominant mindset. The subjects' opinions of the two systems were gathered, and sentiment analysis was performed on the opinions to uncover the rationale behind the operational...

Moving forward with service dominant logic: Exploring the strategic orientations of a service-centred view of the firm

Abstract: Service Dominant Logic (SDL) has been the subject of great conceptual debate over the past years. We are now clearly at a crossroad where application is required to cement its practical relevance to the organization and its performance. This paper extends the SDL debate, as founded by Vargo and Lusch (2004), by analyzing it through the lens of strategic orientations, in combination with a service-centred view of the firm. In doing so, the purpose of this paper is twofold. Firstly we aim to identify the existence of ‘common characteristics’ between SDL and existing conceptual orientations. Secondly, we go further to explore the conceptual relationships between these identified and empirically evaluated strategic orientations (market, resource, learning, service, and entrepreneurship orientations) and SDL theory. We proffer that a service-centred view of the firm requires the deployment of key facets of all of these strategic orientations. In this way, we argue that a SD ‘orientation’ emerges that is in essence a strategic orientation ‘combination’. In doing so, we develop a comprehensive framework and lay the foundation for the initiation of empirical work on SDL to further enrich the work initiated by Vargo and Lusch (2004). The paper concludes with a discussion of this framework, its implications for scholars and practitioners and areas for future research.

1+1 does not always equal value creation: The case of YouTube

Abstract: Early services literature and the original service-dominant logic (SDL) work of Vargo and Lush (Journal of Marketing 68(1):1–17, 2004a) have suggested a dyadic customer and company relationship in the value creation process While extant literature increasingly acknowledges more complex relationships between provider and customer networks to create value, we show that widely used e-services such as YouTube are based on relationships in which such provider and customer roles can vary significantly However, we also assert that in the case of e-services, value is created primarily between and among customers rather than by the provider, as had been the case in earlier goods-dominant logic literature Reflecting the research context, this paper seeks to extend various SDL foundational premises to the experience of e-services, discussing their generalizability and concluding with recommendations for further research

Consumer workers as immaterial labour in the converging media markets: three value‐creation practices

Abstract: This paper takes a practice-based approach to consumer studies and focuses on the strategic and productive roles that consumers play as immaterial labour or consumer workers in the converging media markets. Based on a case study of a print media organization and its customers, the aim is to discuss the collaborative practices through which value is created in the market. By means of a textual analysis of online and interview data, three value-creation practices are abstracted and illustrated: constructing a sense of belonging and collective identity, mutual helping and peer support, and building pride and self-respect. Overall, the paper suggests that in global media environments, consumer-customers are playing increasingly significant strategic roles in the practices and processes through which value is co-created in the market. It is therefore concluded that the idea of consumers, and media audiences in particular, as recipients of communication and targets of marketing activities needs to be problematized and the dynamic strategic roles that consumers currently play in the market need to be acknowledged and actively incorporated into the business praxis of media corporations.