Article

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). 12/2007; 83(1):5-18. DOI: 10.1016/j.jretai.2006.10.002

ABSTRACT

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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    • "It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static snapshots. " This visibility is essential to grasping the behavior, performance, and fit of sustainability programs within larger competitive and environmental ecosystems (Lawrence and Lorsch, 1967;Lusch et al., 2007). Such understanding is needed for at least the following three reasons: (1) to benchmark the difficulties firms have encountered in establishing initiatives to bring sustainable products to market; (2) to communicate why a well-understood and common conceptualization of a sustainable product is critical to the growth and success of a comprehensive sustainability program; and (3) to help decision makers structure and align supply chain subsystems for economic and sustainability success. "
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    ABSTRACT: Purpose – Regulatory pressure, consumer awareness, and the quest for competitive advantage place sustainable products in today’s decision-making spotlight. The purpose of this paper is to explore supply chain dynamics as they relate to sustainable product programs and to empirically develop a framework to align efforts across the supply chain to bring sustainable products to market. Design/methodology/approach – Grounded in systems design, stakeholder theory, and the theory of planned behavior, the authors conduct an inductive empirical study of 28 European and US companies. Findings – The authors make three contributions. First, the authors identify six dimensions of product sustainability, which map to the Greenhouse Gas Protocol’s sustainability scope model. Second, the authors model relational dynamics using systems diagrams to provide a framework that: first, communicates a common understanding of product sustainability; and second, facilitates tradeoff analysis. Third, the authors elaborate behaviors needed to reduce ambiguity and compliance costs. Practical implications – Managers can use the framework to assess product sustainability and evaluate tradeoffs across product dimensions and supply chain participants. Using this insight, managers can design sustainable product programs that engage supply chain participants. Social implications – By identifying dimensions, defining costs, and uncovering tradeoffs, managers can more effectively implement sustainable product programs. Originality/value – The framework provides a much needed source of clarity to mitigate role ambiguity, reduce compliance costs, and promote collaborative behavior in bringing sustainable products to market.
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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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    • "Although the focus of value co-creation process rests with the customer, employees have also been depicted as operant resources (together with other stakeholder groups: Lusch et al, 2007; Merz, He and Vargo 2009). This aligns with the concept of Internal Marketing (IM), where employees are viewed as internal customers who help to co-create the brand experience. "
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    ABSTRACT: For the past 25 years, scholars and practitioners have claimed that Internal Marketing (IM) is a key to business success. However, a review of the extant literature reveals that scholarship has focused on what is needed for IM to be beneficial, rather than the how IM contributes to a firm’s success or ongoing competitive advantage. To date, little is still known about the mechanisms through which IM works or could be leveraged to deliver value to the firm, leaving the research agenda described by Ahmed and Rafiq in 2003 unfulfilled more than a decade on. To address this, we propose that IM can be viewed through the lens of Service Dominant Logic to address and put forward a revised concept of IM, anchored in co-creation theory. Finally, we identify a future research agenda that examines the role of the employee as an operant resource in the co-creation of value.
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