Archives: Literature


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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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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“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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“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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Abstract: This study analyses the influence of client operant resources, in the form of self-efficacy, bridging social capital and customer expertise, on co-creation activities with companies and the customer resulting perceived benefits. A quantitative study, based on a sample of 362 consumers was carried out to test a model that sets out the relationships among the variables in analysis. The results demonstrate not only how operant resources do effectively contribute towards explaining a certain percentage of the variation in customer co-creation activities, but also how this resources influence gets boosted by the efforts companies make to educate their customers. The results also show that co-creation with the firm enhances customer perceived benefits.


Study showing customer operant resources and impact on co-creation of value/perceived benefits
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Abstract: Marketing’s evolution toward a new dominant logic requires the focus of marketing to be on the intangible, dynamic, operant resources that are at the heart of competitive advantage and performance. First, building on resource-advantage theory's notion of basic resources and higher-order resources, this article proposes a hierarchy of basic, composite, and interconnected operant resources. Second, reviewing research on business strategy and marketing strategy, several resources that correspond to the proposed hierarchy are identified and discussed. Third, the notion of developing masterful operant resources is introduced. Fourth, based on the proposed hierarchy and the notion of masterful operant resources, some exemplars of potential research avenues for marketing strategy are provided. Finally, the article concludes with the discussion of implications for marketing practitioners, researchers and educators. In sum, this article extends and elaborates the concept of operant resources in the service-dominant logic of marketing.


Hierarchy of operant resources: basic, composite, and interconnected. Used on https://solvinnov.com/operant-resources-are-the-fundamental-source-of-strategic-benefit/
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Abstract: The service sector – which includes government, education, medical and healthcare, banking and insurance, consulting, information technology services, retail and wholesale, tourism and hospitality, entertainment, transportation and logistics, and legal among others – accounts for most of the world’s economic activity, but is the least studied and least understood part of the economy. Innovation in service in particular is not approached as systematically as innovation in agriculture and manufacturing, which have experienced large productivity and quality gains in the last two hundred years. To remedy this, we propose developing a science of service, which aims to provide theory and practice around service innovation. In this paper, we show progress toward this, arguing that the proper basic category is the service system in which entities exchange performance of beneficial action, and that a service system can be understood as a system composed of people and technologies that adaptively computes and adjusts to the changing value of knowledge in the system.


service system = system in which entities exchange performance of beneficial action And that a service system can be understood as a system composed of people and technologies that adaptively computes and adjusts to the changing value of knowledge in the system
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Abstract: Purpose – In the discussion on service-dominant logic and its consequences for value creation and marketing the inner meaning of the value-in-use notion and the nature of service marketing have not been considered thoroughly. The purpose of this paper is to analyze the meaning of a service logic as a logic for consumption and provision, respectively, and explore the consequences for value creation and marketing. Design/methodology/approach – Being a research-based paper, the topic is approached by theoretical analysis and conceptual development. Findings – Discussing the differences between value-in-exchange and value-in-use, the paper concludes that value-in-exchange in essence concerns resources used as a value foundation which are aimed at facilitating customers' fulfilment of value-in-use. When accepting value-in-use as a foundational value creation concept customers are the value creators. Adopting a service logic makes it possible for firms to get involved with their customers' value-generating processes, and the market offering is expanded to including firm-customer interactions. In this way, the supplier can become a co-creator of value with its customers. Drawing on the analysis, ten concluding service logic propositions are put forward. Research limitations/implications – The analysis provides a foundation for further development of a service logic for customers and suppliers, respectively, (“service logic” is preferred over the normally used “service-dominant logic”) as well for further analysis of the marketing consequences of adopting such a business and marketing logic. Practical implications – Marketing practitioners will find new ways of understanding customers' value creation and of developing marketing strategies with an aim to engage suppliers with their customers' consumption processes in order to enhance customer satisfaction. Originality/value – For a scholarly audience, the paper provides a more truly service-centric understanding of value creation and of its marketing consequences. For a practitioner audience, it offers service-based means of further developing marketing practices.


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