Perception value of product-service systems: Neural effects of service experience and customer knowledge

Digital trends in product-service system (PSS) development focus on developing win-win solutions for both companies and customers, particularly when considering human behavior issues. It is useful for the PSS provider to know the PSS value creation mechanism when customers are buying and utilizing a PSS, particularly in the service-dominant logic (SDL) and cognitive neuroscience perspective. This study solved the PSS implementation that satisfied the demands of both customers and manufacturers and the value cocreation mechanism during product and service configuration with the impacts of consumer learning and the service experience. The proposed neuroscience methodology is based on an ERP (event-related potential) experiment using PSS stimuli, representing the perception value creation process during customer decision making and the PSS configuration process. The effectiveness of the service experience is more important than customer knowledge during PSS value perception due to positive emotions with pleasant memories for the service experience and the conflicting cognition process of customer learning. The combination of service science and neurology may measure and observe human behavior and psychology through the brain science method and effectively solve the human factors in service science. The findings suggest a more objective and personalized understanding of PSS value perception, particularly the practical requirements of a resulted-oriented PSS and an application-oriented PSS.     

A supply chain management framework for services

While services represent the largest sector of the global economy, 86.8% in the United States, most supply chain management (SCM) research is focused on product flows. Executives in manufacturing firms have benefited from frameworks created to implement SCM processes, but this is not the case for their counterparts in service companies. The two most cited SCM frameworks for services have methodological and conceptual deficiencies. Drawing upon the service-dominant logic of marketing and using an empirical research approach, we developed supply chain structure maps for nine service firms. Our findings indicate that the supply chain structure maps of service companies are comparable to those in the product-based literature, which supports the service-dominant logic. Then, we identified the six key processes that constitute a framework to manage service supply chains. The customer relationship management and the supplier relationship management processes form the critical links in the supply chain, and the other four processes are coordinated through this linkage. The SCM framework for services provides direction for executives in service firms who need to increase cross-functional integration within their firms and with other members of the supply chain. For academics, 12 avenues for future research are identified.     

Innovation and service-dominant logic

Radical changes have occurred in innovation management. Traditional goods-dominant logic has shifted to service-dominant logic, where value is created for use instead of exchange. Customers are tied to organizations to co-create value. The focus of this special issue is on high quality, original, unpublished research, case studies, and implementation experiences. The issues are covered, including the collaborative workplaces for innovation in service companies, the financial crisis in hospitality industry, the role of quality management in innovation, and the value logic in service.     

Predictive and effectual decision-making in high-tech international new ventures – A matter of sequential ambidexterity

This study investigates the international opportunity exploration and exploitation processes of high technology international new ventures (INVs) operating in the global medical devices sector. Drawing upon the effectuation and causation perspectives, we contribute to the micro-foundations of international entrepreneurship research in the early innovation development space by focusing on decision-making logics of techno-entrepreneurs of INVs. Specific focus is afforded to the phases of their exploration and exploitation of international opportunities leading to international new venture creation. In the pre-start-up and start-up stages of international new ventures, we find that sequential ambidexterity applies to how the subject firms manage the exploration and exploitation of opportunities in the delivery of their innovations to global markets.This research advances prior international entrepreneurship studies by focusing on the opportunity and innovation processes on the individual level. We identify different decision-making logics in the different phases and contrary to earlier findings in the international entrepreneurship (IE) area, we found causation logic to dominate the initial stages of exploration and effectuation logic, in the latter stages. Prior commercial experience presented itself as a key determining factor in the decision-making path chosen by international techno-entrepreneurs. Our study further extends the view of organizational ambidexterity by offering empirical insights into the relevance of sequential ambidexterity for understanding the processes of innovation exploration and exploitation in high-tech INVs and the decision-making logics driving these processes.     

物流服务供应链的研究——从供应到需求的视角转变

服务业的快速发展让研究学者开始重新认识服务,对服务概念的不同理解形成了不同的服务逻辑观。文章从结构、管理要素、价值创造、利益协调四个方面分析了传统物流服务供应链的理论架构,运用服务主导逻辑分析物流服务供应链,提出应当将物流服务供应链的研究视角从保障能力供应向满足客户需求转变,重视客户在物流服务供应链中的地位与作用。在此基础上,文章分析了需求视角下物流服务供应链中企业客户与服务提供商共同创造服务价值的价值创造机理与利益共享形成机制等问题,提出三个进一步研究的方向。     

Co-creating value for luxury brands

The global market for luxury brands has witnessed dramatic growth over the last two decades but the current challenging economic environment contributes to the difficulty brand owners experience in ensuring that customers perceive sufficient value in their luxury brands to compensate for the high prices. According to recent service-oriented research, customers and suppliers co-create value as a result of a shift from a firm- and product-centric view of value creation to one that focuses on personalized brand experiences. In this paper, the authors develop a theoretical framework of types of value for luxury brands, and use case study research to identify processes of value creation in this particular setting. The findings highlight the variety of interactions taking place between luxury brand owners, their customers and members of their respective networks, which help to differentiate luxury brands and co-create a superior value proposition.     

Roles of ‘small- and medium-sized enterprises’ in service industry innovation: a case study on leisure agriculture service in tourism regional innovation

This study combines service-dominant logic (SDL) with industry cluster theory to analyze the evolution of leisure agriculture service in Taiwan. The result shows that cooperation among small- and medium-sized enterprises (SMEs) can increase customer willingness to participate in value co-creation. Customer-driven cooperation among SMEs drives SMEs to increase their competitiveness and thus overcome their disadvantages in resources and capabilities. Additionally, the four-stage evolution of leisure agriculture service is identified to help tourism SMEs understand their positions and suggest appropriate strategies for achieving sustainable development and it also reveals a shifting paradigm from goods-dominant logic to SDL in tourism industry.     

Transformative service research and service dominant logic: Quo Vaditis?

This paper takes a closer look at the emerging topic of transformative service research (TSR) and compares its facets with the more established concept of the service-dominant logic (SDL). The paper thus contributes to both theory development and practical application. This work highlights the conceptual parallels in the two approaches, for example, their holistic approach, their systems thinking, addressing entities or actors within such system(s), inclusion of the wider environment, and their focus on the co-creative and interactive nature of well-being generation and value co-creation. The paper also reveals some differences, for example TSR’s focus on eudaimonic and hedonic well-being outcomes vs. SDL’s value co-creation. The paper concludes that both perspectives have merits, but could benefit from being used integratively. By comparing the areas of theory focus, practical application, value co-creation and co-destruction, intentionality, well-being and value concepts, and TSR and SDL’s “logic”, the paper provides suggestions for future research.     

The Challenge Today: Changing the Rules of the Game

As the information age takes over from the industrial age and change accelerates, the key challenge for each company is to become the architect of revolution in its industry, leaving other companies to play catch-up. The author argues that the key competitive advantage for companies intent on winning in the new economy is non-linear innovation. Companies need to shift from a product-centric view of innovation to a systemic view of innovation: ie innovation of the business model itself. This article is derived from the last of the 1998 Stockton Lectures, delivered in April.     

1 + 1 does not always equal value creation: The case of YouTube

Early services literature and the original service-dominant logic (SDL) work of Vargo and Lush (Journal of Marketing 68(1):1–17, 2004a) have suggested a dyadic customer and company relationship in the value creation process. While extant literature increasingly acknowledges more complex relationships between provider and customer networks to create value, we show that widely used e-services such as YouTube are based on relationships in which such provider and customer roles can vary significantly. However, we also assert that in the case of e-services, value is created primarily between and among customers rather than by the provider, as had been the case in earlier goods-dominant logic literature. Reflecting the research context, this paper seeks to extend various SDL foundational premises to the experience of e-services, discussing their generalizability and concluding with recommendations for further research.     

Digitalization Capabilities as Enablers of Value Co‐Creation in Servitizing Firms

As manufacturing companies pursue a servitization strategy, they are increasingly relying on developing digitalization capabilities to interact and co‐create value with their customers. However, many lack an understanding of what constitutes digitalization capabilities and how they can create value with customers. To address these questions, the study builds on qualitative data from four industrial manufacturing firms to conceptualize three underlying subcomponents of digitalization capabilities, namely, intelligence capability, connect capability, and analytic capability. The study identifies and explains how digitalization capabilities enable value co‐creation with customers through perceptive and responsive mechanisms. This study contributes to the servitization literature by showcasing how digitalization capabilities are enabling value co‐creation in a business‐to‐business context.     

Learning organization in mainland China: empirical research on its application to Chinese state‐owned enterprises

This paper examines the applicability of the learning organization concept and its measurement in a Chinese context. Based on the theoretical framework proposed by Watkins and Marsick (1993, 1996, 1997), this paper identifies the differences in seven of the Dimensions of Learning Organization Questionnaire (DLOQ) between traditional state‐owned enterprises (SOEs) versus independent listed companies and companies in service versus manufacturing industries in China. Results indicate that the Chinese version of the DLOQ demonstrated acceptable psychometric properties. Service companies exhibit better learning practices than manufacturing companies; however, the independently listed companies failed to show better learning practices than their unlisted counterparts. Implications for practice and future research are discussed.     

Competitive advantage through service differentiation by manufacturing companies

This paper examines the relationship among the complexity of customer needs, customer centricity, innovativeness, service differentiation, and business performance within the context of companies that have made a service transition from pure goods providers to service providers. A survey of 332 manufacturing companies provides the basis for the empirical investigation. One key finding is that a strong emphasis on service differentiation can lead to a manufacturing firm's strategies for customer centricity being less sensitive to increasingly complex customer needs, which can increase a firm's payoff for customer centricity. In contrast, the payoff from innovativeness appears to be higher if the firm focuses its resources on either product or service innovation; that is, a dual focus does not work well. This paper discusses the implications of these findings for researchers and managers.     

Value Frame Fusion in Cross Sector Interactions

Prior research flags the inherent incompatibilities between for-profit and nonprofit partners and cautions that clashing value creation logics and conflicting identities can stall social innovation in cross sector partnerships. Process narratives of successful versus unsuccessful cross sector partnerships paint a more optimistic picture, whereby the frequency, intensity, breadth, and depth of interactions may afford frame alignment despite partners’ divergent value creation approaches. However, little is known about how cross sector partners come to recognize and reconcile their divergent value creation frames in order to co-construct social value. Using longitudinal narratives of four dyads, we show that partners initially contrast their sector-embedded diagnostic frames and then work together to deliberately develop partnership-specific prognostic frames. We extend the literature on framing by developing a four-stage grounded model of frame negotiation, elasticity, plasticity, and fusion which unpacks the relational process of value creation in cross sector partnerships. Our qualitative analyses further show how partners orchestrate multilevel coordination that helps scaffold and calibrate this relational process of frame fusion.     

Service providers’ sustainable service innovation: service-dominant logic

This study examined the service innovation in different service providers with multiple case-study approach. From the perspective of service-dominant logic, four service innovation development models can be distinguished in Technology Development Program companies in Taiwan, including service system integrator and niche market, innovative service solution provider and niche market, innovative service solution provider and mass market, and service system integrator and mass market. Service providers develop ICT platforms, customer relationship management systems, community commerce services, and multi-channel services that are appropriate for a specific industry. On the one hand, active improvement of ICT service system integration extends company capabilities toward external cooperative partners through the provision of integrated product services and comprehensive solutions. On the other hand, innovative service solutions optimize consumer experience and customer relationship management and improve business effectiveness and reduce operations costs due to an important role assigned to services and experience in product sales.     

Classification of Service Businesses from a Utility Creation Perspective

The concept of time and space utility creation involving the relationship between service businesses and their recipients has not been adequately explored by scholars. This study provides a conceptual framework for classifying service businesses on the basis of utility creation, and proposes that the value of a service business rests on its ability to create utility. The insights of the framework are also discussed.     

服务业创新理论国外相关研究综述

基于国外理论与实践的研究,对创新过程的理解、传统的制造业向服务业转移、服务业创新实证研究、服务行业创新模式的研究进行了理论综述。从服务业创新研究现状看,原有的创新理论与服务业的发展现状已出现较多矛盾:传统的创新理论主要来源于制造业,而制造业创新与服务业相距甚远,所以在服务业领域缺乏规范的实证研究,从而使理论研究缺乏实证依据;服务业的多样性、交叉性及差异性,以及其行业的飞速发展性,使其创新内容、创新类型、创新模式等创新基本理论问题的概念化难度相对较大;服务业的相关研究较为零散,缺乏整体性和系统性。     

How institutional logics shape fairness in crowdsourcing: The case of Threadless

Fairness is essential for successful crowdsourcing. Without it, companies run the risk of consumers not participating, or worse, sabotaging the crowdsourcing initiative. Yet little is known about how consumers determine what is fair in crowdsourcing. Building on theories of organizational justice and institutional logics, and using a longitudinal netnography of Threadless, a popular crowdsourcing platform, this paper shows how experiences of fairness stem from the interaction between two conflicting crowdsourcing logics: the logic of renewal and the logic of community. The two logics inform notions of fairness in crowdsourcing contests across procedural, distributive, and interactional justice dimensions. A balance between the two logics is ideal for maintaining fairness among a crowdsourcing community. We show the conditions in which crowdsourcing participants tolerate transgressions to each justice dimension, consequently emphasizing one logic over the other. Overall, our study advances theory on crowdsourcing logics and how they guide notions of procedural, distributive, and interactional fairness in crowdsourcing. Our study also offers new guidance on how to manage fairness in crowdsourcing.     

Caught in a communicative catch-22? Translating the notion of CSR as shared value creation in a Danish CSR frontrunner

There is a growing interest in how the notion of corporate social responsibility (CSR) as shared value creation is translated in Scandinavia. However, current research seems to disregard that the specific institutional context is ambiguous, enabling the organization, and its internal stakeholders to translate the institutional logics into contradictory meanings of CSR as shared value creation. Building on the institutional logics perspective and the metaphor of translation, and framed within a case study of a Danish CSR frontrunner, this paper explores how the notion of CSR as shared value creation is translated at both the organizational and individual level through discourse. The study shows that the organization and its internal stakeholders employ different strategies to reconcile the institutional logics of ethics and economy, suggesting that the translation processes are a complex communicative matter of continuously balancing the contradictory institutional logics to maintain legitimacy in the eyes of external stakeholders.     

The Impact of Relational Variables on Value Creation in Buyer–Seller Business Relationships

Purpose: This research was aimed at attaining a deeper knowledge of how customer value creation can be improved in business markets. Although trust and commitment (as relational governance mechanisms) appear to have a positive effect on customer value creation, limited empirical evidence exists about the combined effect of the aforementioned variables on improving customer value creation. This article studies why trust and commitment are key precursors to improving customer value creation in commercial relationships among companies.

Methodology: Following a review of the literature, we introduce and contrast a conceptual model on a sample of 181 manufacturing companies located in Spain by means of a structural equation system.

Originality: The study of these causal relationships is relevant because it provides greater knowledge of the role played by the key relational variables of trust and commitment on improving customer value creation in business markets. These variables also have an important influence on the development and maintenance of a relationship in the long term and have been the focus of recent marketing research.

Findings: The empirical results reveal that: (1) distributor commitment is a direct and positive antecedent of value creation in a relationship, understood from a functionalist perspective; (2) distributor trust, the other relational variable, has an indirect effect on value creation through the distributor's commitment; and (3) this research does not tie in with previous studies that found that direct value-creating functions have a multiple-component nature representing a second-order factor.