On Evolving New Dominant Logics in the Realm of Research on Services

It always attracts attention if scholars claim for or identify a paradigm shift with a new paradigm evolving and unfolding. Besides the rhetorical dimension of this issue, the Kuhnian (1970) notion of paradigm shifts is still useful to unveil developments

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On Evolving New Dominant Logics in the Realm of Research on Services

1. Problem and background 2. Perspectives of new dominant logics 3. Introducing a knowledge-dominant logic 4. Concluding remarks References

__________________________ Prof. Dr. Jörg Freiling is the head of the Chair in Small Businesses and Entrepreneurship (LEMEX) at the University of Bremen, Germany. Diana Chernetska is a doctoral student and research associate at this Chair. Martin Krikken is a doctoral student and research associate at the same Chair. © Springer Fachmedien Wiesbaden 2016 M. Bruhn, K. Hadwich (Hrsg.), Servicetransformation, DOI 10.1007/978-3-658-11097-0_5

1.

Problem and background

It always attracts attention if scholars claim for or identify a paradigm shift with a new paradigm evolving and unfolding. Besides the rhetorical dimension of this issue, the Kuhnian (1970) notion of paradigm shifts is still useful to unveil developments in research that might be frame-breaking (e. g. the turn from transaction to relationship marketing according to Jackson 1985, or the notion of “open innovation”, e. g. Chesbrough 2003). Among several debates in this vein, Vargo and Lusch (2004) raised the issue whether there might be a paradigm shift in marketing research from a goods-dominant logic to a service-dominant logic. In several follow-up publications (Lusch/Vargo 2006b; Lusch et al. 2007; Vargo/Lusch 2007, 2008), the authors refined their point of view and gave rise to the impression that something important in marketing might have changed. In a few words and according to Figure 1, Vargo and Lusch (2004) argue that business departs from “traditional” manufacturing acting according to the “make and sell” principle (goods-dominant logic) with suppliers manufacturing products autonomously by using typical input factors (e. g. machines, materials) and selling them afterwards within transactions that are governed by market principles. They introduce a “new world” (service-dominant logic) with rather different roles of customers and suppliers that interact in new business models. For the supplier in this setting, serving customers implies customer integration into supplier’s value-added processes as co-developer and co-producer of a solution. Valueadded processes rest on the “sense and respond” principle where the supplier needs to thoroughly find out the problem of the customer to tailor a specific solution and to support the customer even in later processes of the utilization phase (supplier integration). Insofar, autonomous manufacturing according to the goods-dominant logic is replaced by mutual involvement of the transaction partners that form a temporary unit (Vargo/ Lusch 2004) which is characterized by relational governance (market governance) rather than market governance in Williamsonian terms (Williamson 1985). In this worldview, intangibles (operant resources) are much more decisive than tangibles (operand resources). Figure 1 summarizes the diverging fundamental premises of GDL and SDL. Taking a precise look on the definition o