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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). Among the most important extensions have been (1) the development of
== The core ==
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=== Axioms and foundational premises ===
The core ideas of S-D logic are formulated into foundational premises. Vargo and
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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.
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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To fully unlock the complex nature of value cocreation within the society, S-D logic has recently introduced the concept of a service ecosystem (Lusch and Vargo, 2014, Vargo and Lusch, 2011). As actors specialize in providing ever more sophisticated configurations of applied resources for each other, the systemic dependencies and interdependencies among them result as the emergence of complex exchange systems (Chandler and Vargo, 2011, Vargo and Lusch, 2011). S-D logic uses the term 'ecosystems' to identify these systems because it denotes actor–environmental interaction and energy flow. More specifically, the term 'service ecosystem' is used to identify the particular kind of critical flow—mutual service provision (Vargo and Lusch, 2016). Service ecosystems are defined in S-D logic as "relatively self-contained, self-adjusting systems of resource-integrating actors connected by shared institutional arrangements and mutual value creation through service exchange." (Lusch and Vargo 2014; Vargo and Lusch 2016).
The service ecosystems concept is similar to the service systems concept of ''service science'' ([[Service science, management and engineering]], e.g., Maglio et al. 2009), defined as "a configuration of people, technologies, and other resources that interact with other service systems to create mutual value". However, the service ecosystem definition in S-D logic emphasizes the more general role of institutions, rather than technology. Likewise, the service ecosystems conceptualization is somewhat similar to Layton's (e.g., 2011) conceptualization of a marketing system. However, he sees both knowledge and institutions as environmental, or exogenous, to marketing systems, whereas in S-D logic they are seen actor-generated and endogenous to service ecosystems (Vargo and Lusch, 2016
=== Narrative ===
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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,
* 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. 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),
* 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),
* 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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* Russell-Bennett, R., Wood, M., and Previte, J. (2013). Fresh ideas: services thinking for social marketing. Journal of Social Marketing, 3(3), 223–238.
* 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),
▲* 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. (2008). Service-dominant logic: continuing the evolution. ''Journal of the Academy of Marketing Science'', 36(1),
▲* 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), 1-17.
▲* Vargo, S. L., and Lusch, R. F. (2008). Service-dominant logic: continuing the evolution. ''Journal of the Academy of Marketing Science'', 36(1), 1-10.
* 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.
* Vargo, S. L., Maglio, P. P., and Akaka, M. A. (2008). On value and value co-creation: A service systems and service logic perspective. ''European Management Journal'', 26(3), 145–152.
* Wieland, H., Koskela-Huotari, K., and Vargo, S. L. (2016). Extending actor participation in value creation: an institutional view. ''Journal of Strategic Marketing'', 24(3-4), 210–226.
* Yazdanparast, A., Manuj, I., and Swartz, S. M. (2010). Co-creating logistics value: a service-dominant logic perspective. The International Journal of Logistics Management, 21(3), 375–403.
== Further reading ==
* 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),
* 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),
* 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.
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