Article | Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden | What Does a Service-Dominant Logic Really Mean for Manufacturing Firms?

Title:
What Does a Service-Dominant Logic Really Mean for Manufacturing Firms?
Author:
Christian Kowalkowski: Department of Management and Engineering, Linköping University, Linköping, Sweden
Download:
Full text (pdf)
Year:
2010
Conference:
Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden
Issue:
077
Article no.:
029
Pages:
229-235
No. of pages:
7
Publication type:
Abstract and Fulltext
Published:
2012-10-11
ISBN:
978-91-7393-381-0
Series:
Linköping Electronic Conference Proceedings
ISSN (print):
1650-3686
ISSN (online):
1650-3740
Publisher:
Linköping University Electronic Press; Linköpings universitet


Service infusion is a major global business trend in manufacturing industries. This means that firm strategically increase their service orientation in order to increase profit margins. In parallel to this development; the service-dominant logic has emerged as arguably the most challenging recent scholarly marketing debate. Positioning service as dominant in marketing logic clearly challenges traditional practice; given that much of marketing theory originated from a goods-dominant view. However; there are several misconceptions of what this logic means; leading to erroneous managerial implications. Therefore; the objective is to (1) explain the distinct difference between a product-service transition and a transition from goods-dominant to service-dominant logic; and (2) discuss what these transitions mean for industry and academia. For example; a transition to service-dominant logic implies much more than an increased emphasis on the firm’s product-service systems; it implies a reframing of the purpose of the firm and its collaborative role in value co-creation.

Keywords: Service-dominant logic; Service infusion; Value-in-use; Solutions

Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden

Author:
Christian Kowalkowski
Title:
What Does a Service-Dominant Logic Really Mean for Manufacturing Firms?
References:

[1] Kowalkowski; C; 2008; Managing the Industrial Service Function; Published doctoral dissertation; Department of Management and Engineering; Linköping University; Linköping; Sweden; available online at: http://liu.divaportal. org/smash/record.jsf?searchId=2&pid=diva2:1 62 (accessed 1 February 2010).


[2] Robinson; T; Clarke-Hill; CM; Clarkson; R; 2002; Differentiation through service: A perspective from the commodity chemicals industry; The Service Industries Journal; 32: 149-166.


[3] Davies; A; Brady; T; Hobday; M; 2006; Charting a Path Toward Integrated Solutions; Sloan Management Review; 47: 39-48.


[4] Gebauer; H; 2008; Identifying service strategies in product manufacturing companies by exploring environment‚Äďstrategy configurations; Industrial Marketing Management; 37: 278-291.


[5] Sakao; T; Lindahl; M; eds.; 2009; Introduction to Product/Service-System Design; Springer; London; UK.


[6] Gebauer; H; Friedli; T; 2005; Behavioral implications of the transition process from products to services; Journal of Business & Industrial Marketing; 20: 70- 78.


[7] Mathieu; V; 2001; Service strategies within the manufacturing sector: benefits; costs and partnership; International Journal of Service Industry Management; 12: 451-475.


[8] Oliva; R; Kallenberg; R; 2003; Managing the transition from products to services; International Journal of Service Industry Management; 14: 160- 172.


[9] Penttinen; E; Palmer; J; 2007; Improving firm positioning through enhanced offerings and buyerseller relationships; Industrial Marketing Management; 36: 552-564.


[10] Vargo; SL; Lusch; RF; 2004; Evolving to a New Dominant Logic for Marketing; Journal of Marketing; 68: 1-17.


[11] Lusch; RF; Vargo; SL; 2006; The Service-Dominant Logic of Marketing: Dialog; Debate; and Directions; M. E. Shape; Armonk; NY.


[12] Lusch; RF; Vargo; SL; 2006; Service-dominant logic: reactions; reflections and refinements; Marketing Theory; 6: 281-288.


[13] Vargo; SL; Lusch; RF; 2008; Service-dominant logic: continuing the evolution; Journal of the Academy of Marketing Science; 36: 1-10.


[14] Vargo; SL; Lusch; RF; 2008; Why "service"? Journal of the Academy of Marketing Science; 36: 25-38.


[15] Davies; A; 2004; Moving base into high-value integrated solutions: a value stream approach; Industrial and Corporate Change; 13: 727-756.


[16] Matthyssens; P; Vandenbempt; K; 2008; Moving from basic offerings to value-added solutions: Strategies; barriers and alignment; Industrial Marketing Management; 37: 316-328.


17] M√∂ller; KEK; T√∂rr√∂nen; P; 2003; Business suppliers’ value creation potential: A capability-based analysis; Industrial Marketing Management; 32: 109-118.


[18] Vargo; SL; Lusch; RF; 2008; From goods to service(s): Divergences and convergences of logics; Industrial Marketing Management; 37: 254-259.


[19] Ballantyne; D; Varey; RJ; 2006; Creating value-inuse through marketing interaction: the exchange logic of relating; communicating and knowing; Marketing Theory; 6: 335-348.


[20] Kowalkowski; C; Ballantyne; D; 2009; Relationship value through the lens of the service-dominant logic; Proceedings from the 17th International Colloquium in Relationship Marketing (ICRM ’09); Maastricht; The Netherlands.


[21] Shostack; GL; 1977; Breaking Free from Product Marketing; Journal of Marketing; 41: 73-80.


[22] Vargo; SL; Lusch; RF; 2004; The Four Service Marketing Myths: Remnants of a Goods-Based; Manufacturing Model; Journal of Service Research; 6: 324-335.


[23] Vargo; SL; Lusch; RF; Service-dominant logic: what it is; what it is not; what it might be; in Lusch; RF; Vargo; SL; eds.; The Service-Dominant Logic of Marketing: Dialog; Debate; and Directions; M. E. Shape; Armonk; NY; 2006; 43-56.


[24] Lusch; RF; Vargo; SL; Service-dominant logic as a foundation for a general theory; in Lusch; RF; Vargo; SL; eds.; The Service-Dominant Logic of Marketing: Dialog; Debate; and Directions; M. E. Shape; Armonk; NY; 2006; 406-420.


[25] Gummesson; E; Relationship Marketing; Its Role in the Service Economy; in Glynn; WJ; Barnes; JG; eds.; Understanding Service Management; Oak Tree Press; Dublin; Ireland; 1995; 224-268.


[26] Aitken; R; Ballantyne; D; Osborne; P; Williams; J; 2006; Introduction to the special issue on the service-dominant logic of marketing: insights from The Otago Forum; Marketing Theory; 6: 275-280.


[27] Day; GS; 2004; Achieving Advantage with a NewDominant Logic: Invited Commentaries on "Evolving to a New Dominant Logic for Marketing"; Journal of Marketing; 68: 18-19.


[28] Grönroos; C; 2007; Service Management and Marketing - Customer Management in Service Competition; John Wiley & Sons Ltd; Chichester; UK.


[29] Ramírez; R; 1999; Value co-production: intellectual origins and implications for practice and research; Strategic Management Journal; 20: 49-65.


[30] Normann; R; 2001; Reframing Business - When the Map Changes the Landscape; John Wiley & Sons; Ltd; Chichester; UK.


[31] Kowalkowski; C; 2008; Value propositions in business markets: insights from the servicedominant logic of marketing; in Layton; R; Vargo; SL; Lusch; RF; eds.; Forum on Markets and Marketing:Extending Service-Dominant Logic; Sydney; Australia; 107-128.


[32] Vargo; SL; Morgan; FW; 2005; Services in Society and Academic Thought: An Historical Analysis; Journal of Micromarketing; 25: 42-53.


[33] Day; GS; 2006; Achieving advantage with a servicedominant logic; in Lusch; RF; Vargo; SL; eds.; The Service-Dominant Logic of Marketing: Dialog; Debate; and Directions; M. E. Shape; Armonk; NY; 85-90.


[34] Mascarenhas; O; Kesavan; R; Bernaccchi; M; 2008; Buyer-seller information asymmetry: challenges to distributive and corrective justice; Journal of Macromarketing; 28: 68-84.


[35] Gebauer; H; Fleisch; E; Friedli; T; 2005; Overcoming the Service Paradox in Manufacturing Companies; European Management Journal; 23: 14 26.


[36] Kindstr√∂m; D; Kowalkowski; C; 2009; Development of industrial service offerings ‚Äď A process framework; Journal of Service Management; 20: 156-172.


[37] Nordin; F; Externalising services - Walking a tightrope between industrial and service logics; 2005; Stockholm School of Economics; Stockholm; Sweden.


[38] Gummesson; E; 2008; Extending the servicedominant logic: from customer centricity to balanced centricity; Journal of the Academy of Marketing Science; 36: 15-17.


[39] Kowalkowski; C; Kindström; D; 2009; Value Visualization Strategies for PSS Development; in Sakao; T; Lindadl; M; eds.; Introduction to Product/Service-System Design; Springer; London; 159-182.


[40] Mannervik; U; Ramírez; R; 2006; Customers as Co- Innovators: An Initial Exploration of Its Strategic Importance; in Edvardsson; B; Gustafsson; A; Kristensson; P; Magnusson; P; Matthing; J; eds.; Involving Customers in New Service Development; Vol. 11; Imperial College Press; London.


[41] Payne; AF; Storbacka; K; Frow; P; 2008; Managing the co-creation of value; Journal of the Academy of Marketing Science; 36: 83-96.

Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden

Author:
Christian Kowalkowski
Title:
What Does a Service-Dominant Logic Really Mean for Manufacturing Firms?
Note: the following are taken directly from CrossRef
Citations:
No citations available at the moment