Service-Dominant Logic Continuing The Evolution
Service-Dominant Logic Continuing The Evolution
Service-Dominant Logic Continuing The Evolution
The theoretical paper aims to extend the debate on Service Dominant Logic (SDL) which was
initially started by the same authors in their now well renowned research paper “Evolving to
a new dominant logic for marketing”. As such, the authors in this paper focus on how SDL
has evolved over time owing in due part as to how it has been received in the academic
community. The 2004 article of new logic prompted a huge response from the academic
community and not only from those belonging to the discipline of marketing but from other
disciplines as well. While most of the feedback that was generated was positive in nature,
there was a sizeable voice which provided scepticism to the debate and dialog which had
begun surrounding the origin and continuing development of this new logic. The reason
which the original authors provide for this rather overt sceptical response from these
individuals stems from a misunderstanding of the proposed logic.
However, the authors also acknowledge certain proposed revisions by other academics.
Mostly these issues emerge from the fact that the new logic contests many areas of marketing
theory and practice that have been in place for the past 150 years or so. These past theories
form the old logic or what is more accepted as the Goods Dominant Logic (GDL). Because of
the richness of the literature present in GDL, at the time when the original article of new logic
was written, the authors struggled in either developing or acquiring terminologies which
better explained the new logic. Because of this, terms such as “producer”, “production”,
“consumer” etc. (terminologies of the old logic) were used to elaborate the idea of the new
logic. Thus, this created a critical debate amongst academics who stated that using the old
lexicon to establish the new logic was counterproductive. The authors respond by
highlighting that these “lexicographic slips” have been modified over time; either by using
neutral terms or creating new ones. Other issues which have been considered form part of the
natural evolution of the discussion regarding SDL. These pertain to ideas such as that the
original article did not explicitly discuss the interactive and networked nature of value
creation (an argument stemmed from the debate on service science) and the
phenomenological nature of value creation.
The authors in that regard provide their view that the interactive nature of value was an
implied notion in the original article and that using the terms experience held closer to the
explanation of SDL than the original terminology which they had used which was service
provision. The authors focus on answering certain key issues which have been brought up by
those academicians who have either questioned the new logic that was proposed or who have
brought their own perceptions of what exactly the new logic. As such, both of these main
issues have been addressed by providing more reasoning as to why they said what they had
said in their seminal work. Furthermore, acknowledging certain critiques, the authors have
also updated some of the original foundational premises (FPs) and have also added a new FP
as well.
Service-dominant logic foundational premise modifications and additions
FP2 Indirect exchange masks the Indirect exchange masks the Because service is provided through
fundamental unit of exchange fundamental basis of complex combinations of goods, money, and
exchange institutions, the service basis of exchange is
not always apparent
FP3 Goods are a distribution mechanism Goods are a distribution Goods (both durable and non-durable)
for service provision mechanism for service derive their value through use – the service
provision they provide
FP4 Knowledge is the fundamental Operant resources are the The comparative ability to cause desired
source of competitive advantage fundamental source of change drives competition
competitive advantage
FP5 All economies are services All economies are service Service (singular) is only now becoming
economies economies more apparent with increased specialization
and outsourcing
FP6 The customer is always a co- The customer is always a Implies value creation is interactional
producer cocreator of value
FP7 The enterprise can only make value The enterprise cannot Enterprises can offer their applied resources
propositions deliver value, but only offer for value creation and collaboratively
value propositions (interactively) create value following
acceptance of value propositions, but cannot
create and/or deliver value independently
FP9 Organizations exist to integrate and All social and economic Implies the context of value creation is
transform microspecialized actors are resource networks of networks (resource integrators)
competences into complex services integrators
that are demanded in the
marketplace
Conclusion
Understanding that the continuing debate on SDL merits that some changes be made to the
original FPs provided in the original new logic article, the authors explicitly make said
changes in this paper. Most of the changes that are made generally consist of minor revisions
to the FPs. These revisions are done to remove the terms which are generally considered
being more GDL centered and to ultimately introduce terminologies which are SDL specific.
The new FP which is proposed by the authors states that value is a phenomenological
occurrence and that its realization is unique to the one who is benefitting from it. This again
marks the distinction of SDL from GDL as within the latter value was ingrained in the firm
offering while in the former value is ingrained in the phenomena or the experience.