Service-dominant logic: Difference between revisions

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Service-dominant logic has been developed by [[Stephen Vargo]] and [[Robert Lusch]]. The goal of developing S-D logic is to contribute to the understanding of human value [[co-creation]], by developing an alternative to [[Market economy|traditional logics of exchange]].
 
Since Vargo and Lush published the first S-D logic article, "Evolving to a New Dominant Logic for Marketing",<ref>For this work, Lusch and Vargo have been awarded the Harold H. Maynard Award by the American Marketing Association for "significant contribution to marketing theory and thought" and the Sheth Foundation Award for "long term contributions to the field of marketing."</ref> in 2004, S-D logic has become a collaborative effort of numerous scholars across disciplines and it has been continually extended and elaborated (most frequently by Vargo and Lusch and in doing so, most of their references are their past papers, which should seriously decrease the validity of their papers). Among the most important extensions have been (1) the development of service ecosystems perspective that allows a more holistic, dynamic, and systemic perspective of value creation and (2) the emphasis of institutions and institutional arrangements as coordination mechanisms in such systems.
 
== The core ==
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The first axiom (FP1) {{'}}''Service is the fundamental basis of exchange''{{'}} is based on the previously introduced definition of service as the application of operant resources (primarily knowledge and skill) for the benefit of another actor. S-D logic argues that it is always fundamentally service, rather than goods, per se, that actors exchange as they strive to become better off. It is important to emphasize that thisThis 'service' (singular), a process, should not be confused with 'services', (usually plural), usually intended to denote a unit of (intangible) output, which is associated with goods dominant (G-D) logic. The first axiom is at the heart of S-D logic, and thus foundational to the other FPs. For example, it implies that (1) goods are distribution mechanisms for service provision (FP3) and (2) all economies are service economies (FP5). It also follows that money, when it is involved in exchanges, represents rights to future service. In other words, money can be viewed as a placeholder for future service and can be understood as a form of indirect service exchange that often masks the fundamental basis of exchange (FP2).
 
The second axiom (FP6), {{'}}''Value is cocreated by multiple actors, always including the beneficiary''{{'}}, contradicts the traditional worldview, in which firms are seen as the sole creator of value. Rather, it suggests that value is something that is always cocreated through the interaction of actors, either directly or indirectly (e.g., through goods). This axiom also enables one to see more clearly that the service-oriented view is inherently relational, because value does not arise prior to exchange transaction, but rather following it, in the use of the exchanged resources, in a particular context and in conjunction with resources provided by other service providers. This value creation is seen as unfolding, over time, with a consequence of continuing social and economic exchange, implicit contracts, and relational norms.
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* Boorsma, M. (2006). A strategic logic for arts marketing: Integrating customer value and artistic objectives. International Journal of Cultural Policy, 12(1), 73–92.
* Chandler, J. D., and Vargo, S. L. (2011). Contextualization and value-in-context: How context frames exchange. ''Marketing Theory'', 11(1), 35–49.
* Ehrenthal J.C.F., Gruen T.W., Hofstetter J.S. (2021). Recommendations for Conducting Service-Dominant Logic Research. In: Dornberger R. (eds) New Trends in Business Information Systems and Technology. Studies in Systems, Decision and Control, vol 294. Springer, Cham, 281-297281–297. {{ISBN|978-3-030-48332-6}} https://doi.org/10.1007/978-3-030-48332-6_19
* FitzPatrick, M., Davey, J., Muller, L., and Davey, H. (2013). Value-creating assets in tourism management: Applying marketing's service-dominant logic in the hotel industry. Tourism Management, 36(June), 86–98.
* Flint, D. J., and Mentzer, J. T. (2006). Striving for integrated value chain management given a service-dominant logic for marketing. In R. F. Lusch and S. L. Vargo (Eds.), The service-dominant logic of marketing: Dialog, debate, and directions (pp.&nbsp;139–149). Armonk, New York: ME Sharpe.
* Hardyman, W., Daunt, K. L., and Kitchener, M. (2015). Value co-creation through patient engagement in health care: a micro-level approach and research agenda. Public Management Review, 17(1), 90-10790–107.
* Karpen, I. O., Bove, L. L., & Lukas, B. A. (2012). Linking service-dominant logic and strategic business practice: A conceptual model of a service-dominant orientation. Journal of Service Research, 15(1), 21–38.
* Karpen, I. O., Bove, L. L., Lukas, B. A., & Zyphur, M. J. (2015). Service-dominant orientation: measurement and impact on performance outcomes. Journal of Retailing, 91(1), 89-10889–108.
* Layton, R. A. (2011). Towards a theory of marketing systems. ''European Journal of Marketing'', 45(1/2), 259–276.
* Luca, N. R., Hibbert, S., and McDonald, R. (2015). Towards a service-dominant approach to social marketing. Marketing Theory.
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* Scott, W. R. (2001). ''Institutions and organizations''. Thousand Oaks: Sage.
* Tokman, M., and Beitelspacher, L. S. (2011). Supply chain networks and service-dominant logic: suggestions for future research. International Journal of Physical Distribution & Logistics Management, 41(7), 717–726.
* Vargo, S. L., and Lusch, R. F. (2004). [http://dret.net/lectures/ssme-spring07/VargoReading-Recommended.pdf 'Evolving to a New Dominant Logic for Marketing'], ''Journal of Marketing'', 68(1), 1-171–17.
* Vargo, S. L., and Lusch, R. F. (2008). Service-dominant logic: continuing the evolution. ''Journal of the Academy of Marketing Science'', 36(1), 1-101–10.
* Vargo, S. L., and Lusch, R. F. (2011). It's all B2B...and beyond: Toward a systems perspective of the market. ''Industrial Marketing Management'', 40(2), 181–187.
* Vargo, S. L., and Lusch, R. F. (2016). Institutions and axioms: an extension and update of service-dominant logic. ''Journal of the Academy of Marketing Science'', 44(4), 5-23.
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== Further reading ==
* [http://www.sdlogic.net/publications.html "Selected Publications on Service-Dominant Logic"]
* Gronroos, C. (2006). [http://mtq.sagepub.com/cgi/reprint/6/3/317.pdf Adopting a Service Logic for Marketing], ''Marketing Theory'', 6 (3), 317–333.
* Gronroos, C. (2011). [http://mtq.sagepub.com/content/11/3/279.abstract Value co-creation in service logic: A critical analysis], ''Marketing Theory'', 11(3), 279–301.
* Lusch, R.F., Vargo, S.L and O'Brien, M. (2007). Competing Through Service: Insights from Service-Dominant Logic, ''Journal of Retailing'' 83(1), 5-185–18.
* Lusch, R.F., Vargo, S.L and Wessels, G. (2008). Toward a Conceptual Foundation for Service Science: Contributions from Service-Dominant Logic," ''IBM Systems Journal'' 47(January–March), 5-145–14.
* Lusch, R.F., Vargo, S.L and Tanniru, M. (2010). [https://web.archive.org/web/20110516004202/http://www.sdlogic.net/Lusch_Vargo_Tanniru_2010_JAMS.pdf Service, value networks and learning], ''Journal of the Academy of Marketing Science'' 38(1), 19–31.
* Lusch, R.F. (2011). Reframing Supply Chain Management: A Service-Dominant Logic Perspective, ''Journal of Supply Chain Management'', 47, 14–18.