Competing Through Service: Insights From Service-Dominant Logic

Foster College of Business Administration, Bradley University, 1501 West Bradley Avenue, Peoria, IL 61625, United States
Journal of Retailing (Impact Factor: 2.75). 01/2007; 83(1):5-18. DOI: 10.1016/j.jretai.2006.10.002


Service-dominant logic (S-D logic) is contrasted with goods-dominant (G-D) logic to provide a framework for thinking more clearly about the concept of service and its role in exchange and competition. Then, relying upon the nine foundational premises of S-D logic [Vargo, Stephen L. and Robert F. Lusch (2004). “Evolving to a New Dominant Logic for Marketing,” Journal of Marketing, 68 (January) 1–17; Lusch, Robert F. and Stephen L. Vargo (2006), “Service-Dominant Logic as a Foundation for Building a General Theory,” in The Service-Dominant Logic of Marketing: Dialog, Debate and Directions. Robert F. Lusch and Stephen L. Vargo (eds.), Armonk, NY: M.E. Sharpe, 406–420] nine derivative propositions are developed that inform marketers on how to compete through service.

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    • "One of these antecedents can be related to the design and novelty of a firm's business model (Nenonen & Storbacka, 2010; Storbacka, Frow, Nenonen, & Payne, 2012). Lusch et al. (2007) highlight that the perception of potential value is a key rationale to decide for co-creation. Furthermore, Heidenreich and Handrich (2015) show that the willingness to co-create is related to innovation characteristics. "

    19. Interdisziplinäre Jahreskonferenz zu Entrepreneurship, Innovation und Mittelstand, Kassel; 10/2015
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    • "Value can only be created when there exists a deep understanding of customers, markets and matching supply chain capabilities. Companies must develop under the logic of service dominance, which requires them to focus on using their operant resources to achieve sustainable competitive advantage via their service offerings in conjunction with their suppliers (Lusch et al., 2007). "
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    • "In brief, when front-line employees are empowered in their role as value co-creators, they become a prime source of innovation, contributing to the integration of resources into value propositions that firms offer their customers (Lusch et al., 2007). However, Michel et al. (2008) argue that further research is needed to understand how service innovation is conducted by combining resources into value propositions. "
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