The evolution of the S-D logic approach and its impact on service science

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The Evolution of the S-D Logic Approach and its Impact on Service Science

Romana Olexova, Viera Kubickova

Received: 21 February 2014 / Accepted: 15 June 2014 / Published: 30 June 2014 © The Society of Service Science and Springer 2014

ABSTRACT The S-D Logic approach has developed into a solid theoretical framework influencing the field of service science and marketing since its introduction by Vargo and Lusch in 2004. Many research papers were published, forums and conferences were founded and a vivid discussion took place over S-D Logic. However, S-D Logic still has not been established as a holistic theory. Thus, the aim of this paper is to analyze the evolution of the S-D Logic approach and its influence on marketing theory and service science, as well as its critical factors based on qualitative literature analysis and conceptual research. As an outcome, the paper provides a timeline featuring landmark publications, and important milestones of the SD Logic approach associated with real world implications.

KEYWORDS S-D Logic Evolution, S-D Logic Influence, Service Science, Marketing Theory.

Romana Olexova ( ) Department of e-Business, School of Business, Economics and Statistics, University of Vienna e-mail: [email protected] Viera Kubickova Faculty of Commerce at University of Economics in Bratislava [email protected]

100 Romana Olexova, Viera Kubickova

1. INTRODUCTION In 2004, American scientists Stephan L. Vargo and Robert F. Lusch published the groundbreaking paper-“Evolving to a New Dominant Logic for Marketing” in the Journal of Marketing. The paper introduced an outline of a new concept of marketing-service-dominant logic (S-D Logic or S-DL)-based on the expressed need for a new marketing perspective that considers services-rather than goods-to be fundamental to economic exchange. The roots of S-D Logic and the debate regarding a possible disctinction between services and goods, as well as the (non-) usefulness of goods and services differentiation itself is traceable back for decades (Dohmen et al. 2012; Dohmen et al. 2014). Vargo and Lusch claimed, that “S-D logic, by viewing service (s) as dominant and goods, organizations, networks, and money as only intermediaries, results in a fundamental inversion of the dominant logic in marketing.” (Lush & Vargo 2006). The original paper in 2004 grounded the basic theoretical framework of the new approach, mainly by formulating eight theoretical principles (so-called fundamental premises or “FPs”) (Vargo & Lusch 2004). A whole decade has passed in which the S-D Logic concept has evolved and improved, resulting in the original paper of Vargo and Lusch being the most cited marketing article during last 10 years (with more than five thousand citation records listed in Google Scholar at the beginning of 2014). As Vargo and Lusch repeatedly stated, they planned the theoretical concept of S-D Logic as an open-source framework based on collaboration, shaped by criticism and further suggestions. Nonetheless, despite a huge impact and attractiveness of the prop