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Archives: Literature


Customer Contributions and Roles in Service Delivery

Bitner, M.J., Farander, W., Hubbert, A., Zeithaml, V. (1997)

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Research Paper
Abstract: Focuses on the roles of customers in creating quality and productivity in service experiences. Presents two conceptual frameworks to aid managerial understanding and focus research efforts on customer participation. The first framework captures levels of customer participation across different types of services. The second discusses three major roles of customers in the service delivery process. Two examples of the concepts are presented ‐ one in a weight loss context and the other in a mammography screening setting. Both are based on empirical research and illustrate specific applications of customers’ roles in creating the service experience.


introduces concept of customer as a temporary employee during service provision
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Modeling value propositions in e-Business

Osterwalder, A., Pigneur, Y. (2003)

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Research Paper
Abstract: In this paper we provide a conceptual approach to modelling value propositions. We argue that rigorous modelling in an ontological style could improve several aspects of business. Modelling and mapping value propositions helps better understanding the value a company wants to offer its customers and makes it communicable between various stakeholders. Using a common language (ontology) in defining a company's offering brings manager's mental models into a common form. Further, conceptually seized value propositions are comparable to the value propositions of a firm's competitors because the follow a rigid framework and make it possible to identify the competitive position of a firm's value proposition.


Gives a model of value life cycle Value appropriation – creation Value consumption – ownership/usage Value renewal –  for example firmware upgrades giving new functionality Value transfer – value has gone for customer, but may still be able to gain value by transferring ownership (e.g. 2nd hand sales)
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The Value Proposition Concept in Marketing: How Customers Perceive the Value Delivered by Firms

Hassan, A. (2012)

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Research Paper
Abstract: Loyal customers are the key factor of success in all organizations. They spend money, they recommend to others and they repeat buy from the same organization, as long as it delivers consistent value. Creating and delivering value where it is needed is not an easy job for a marketing planner. This study seeks to provide strong understanding of the concept of the value proposition from the academic perspective, as regards the actual understanding of what customers perceive about the organizations. This study took place in Southampton in the United Kingdom, on customers of four main supermarkets to identify the way they shop, the value they seek and the value they actually obtain from each supermarket. The method used for this study was qualitative with a use of mini-depth interviews as the approach of collecting and analyzing the data. The results indicated that the value proposition is a widely used concept, but there is no specific definition of it. Value can be created through more than one element, such as price, quality and location. Companies therefore are responsible for setting the value they seek to deliver based on their strategies and their shareholders' values. They are responsible for communicating them and managing the change occurring in the market. Marketing provides marketing strategies and tactics that are aligned with the overall strategies of the organization, to help deliver the best value to customers. Interview results showed that customers perceive different type of values mainly depends on their age, marital status, home location, and shop prices. Some supermarkets communicate their values clearly and some do not. Some of them provide more than one element of value and others tend to focus on just one, such as Waitrose focusing on quality. The findings provided some strategic recommendations on both sides to help improve the value proposition to end customers. This includes corporate and marketing strategic considerations and the need to identify and fulfill customers' expectations. Creating competitive advantage will finally lead to customers' loyalty and generate profits.


Defines value proposition.  
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Capabilities for managing service innovation: towards a conceptual framework

den Hertog, P., van der Aa W., W. de Jong, M.

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Research Paper
Abstract: Purpose – The purpose of this paper is to identify and reflect on a set of dynamic capabilities for managing service innovation and applies a dynamic capabilities view (DCV) of firms for managing service innovation. Design/methodology/approach – This theoretical paper offers a conceptual framework for managing service innovation by proposing six dynamic service innovation capabilities. This framework builds on and is integrated with a model of service innovation that covers the possible dimensions where service innovation can take place. On this basis, avenues for future research into managing service innovation are identified and managerial implications discussed. Findings – The six dynamic service innovation capabilities identified are: signalling user needs and technological options; conceptualising; (un-)bundling; co-producing and orchestrating; scaling and stretching; and learning and adapting. It is hypothesized that successful service innovators, which may include manufacturing firms developing into providers of service solutions, outperform their competitors in at least some of these capabilities. Research limitations/implications – The six dynamic service innovation capabilities identified in this theoretical paper, their mutual links as well as links with dimensions of service innovation need to be tested further. Further refinement is required in order to be able to discriminate between various industries, sizes and types of firms. Practical implications – Those involved in managing service innovation are offered a framework for systematically assessing dynamic service innovation capabilities. Originality/value – The main contribution of this paper is that it links a service (innovation) perspective to a DCV of the firm by proposing a set of six dynamic service innovation capabilities.


Details an extended 6-dimension model of service innovation (expands on original 4-dimension model). Referenced on: https://solvinnov.com/den-hertog-model-for-describing-service-innovations/ https://solvinnov.com/a-modern-services-innovation-framework/
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Inversions of service-dominant logic

Vargo, S., Lush, R. (2014)

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Research Paper
Abstract: Value creation, both its nature and scope, can be better and more accurately understood by inverting six characteristics of goods-dominant logic, or what is also known as ‘‘old enterprise logic’’ or ‘‘neoclassical economics,’’ into a service-dominant-informed perspective. These six inversions include (1) entrepreneurship and the view that value creation is an unfolding, emer- gent process seen as superordinate to management, (2) effectual processes understood as pri- mary in relation to predictive processes and better for informing actors about the interactive, resource-integrating, collaborate nature of value creation, (3) marketing being fundamental to value creation and taking primacy over manufacturing, (4) innovation as more fundamental to, and descriptive of, value creation than invention, (5) a focus on effectiveness as captured by value in use and value in context for beneficial actors taking precedence over efficiency, which is inher- ently a firm-centric lens, and finally (6) the the predominant reliance on heuristics rather than rational, calculative decision making.


Looks at various inversions that taking a service-dominant logic perspective has compared to the goods-dominant logic (which the authors also call ‘‘old enterprise logic’’ or ‘‘neoclassical economics”. These are: “entrepreneurship and the view that value creation is an unfolding, emergent process seen as superordinate to management, effectual processes understood as primary in relation to predictive processes […]
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A theoretical approach to the construction of technological output indicators

Saviotti, P.P., Metcalfe, J.S. (1984)

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Research Paper
Abstract: In this paper a framework potentially useful for the development of indicators of the output of technological innovation is described. The approach is based on a characteristics description of product technology. A product is considered a combination of three sets of characteristics, one describing the technical features of the product, one describing the services performed by the product, and one describing the methods of its production. These sets of characteristics are related by patterns of mapping. The potential applications of the framework to the development of indicators of the output of technological innovation and to the analysis of diffusion and technological substitution are outlined. Also, the relationship of this framework to the concepts of technological regimes, technological guide posts and dominant design is described.


Builds on Lancaster’s work to create a model of product innovation, based on products being a combination of three sets of characteristics. Gallouj & Weinstein build on this to build a model of service based on interpretations of these characteristics. And this is what I use to interpret a model of service in a more […]
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The Elements of Value

Almquist,E., Senior. J., & Bloch, N. (2016)

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Web Article
“Coming up with new concepts requires anticipating what else people might consider valuable.” “We have identified 30 “elements of value”—fundamental attributes in their most essential and discrete forms. These elements fall into four categories: functional, emotional, life changing, and social impact.” “For example, when someone says her bank is “convenient,” its value derives from some […]
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Designing Interactive Strategy

Normann, R., Ramírez, R. (1993)

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Research Paper
“IKEA is more than a link on a value chain. It is the center of a constellation of services, goods, and design.” “In essence, the [Danish] pharmacies wanted to broaden their traditional approach, delivery of conventional pharmaceutical “hardware” (in other words, selling drugs), into a concept they called Pharmaceutical Care, which would emphasize the “software” […]
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