Inversions of service-dominant logic

Stephen L. Vargo, Robert F Lusch

Research output: Contribution to journalArticle

46 Citations (Scopus)

Abstract

Value creation, both its nature and scope, can be better and more accurately understood by inverting six characteristics of goods-dominant logic, or what is also known as “old enterprise logic” or “neoclassical economics,” into a service-dominant-informed perspective. These six inversions include (1) entrepreneurship and the view that value creation is an unfolding, emergent process seen as superordinate to management, (2) effectual processes understood as primary in relation to predictive processes and better for informing actors about the interactive, resource-integrating, collaborate nature of value creation, (3) marketing being fundamental to value creation and taking primacy over manufacturing, (4) innovation as more fundamental to, and descriptive of, value creation than invention, (5) a focus on effectiveness as captured by value in use and value in context for beneficial actors taking precedence over efficiency, which is inherently a firm-centric lens, and finally (6) the the predominant reliance on heuristics rather than rational, calculative decision making.

Original languageEnglish (US)
Pages (from-to)239-248
Number of pages10
JournalMarketing Theory
Volume14
Issue number3
DOIs
StatePublished - Sep 1 2014

Fingerprint

Value creation
Service-dominant logic
Logic
Invention
Primacy
Marketing
Net present value
Heuristics
Manufacturing
Entrepreneurship
Innovation
Predictive process
Neoclassical economics
Resources
Decision making

Keywords

  • Effectual processes
  • entrepreneurship
  • human actors
  • service-dominant logic
  • value creation
  • value in use

ASJC Scopus subject areas

  • Marketing

Cite this

Inversions of service-dominant logic. / Vargo, Stephen L.; Lusch, Robert F.

In: Marketing Theory, Vol. 14, No. 3, 01.09.2014, p. 239-248.

Research output: Contribution to journalArticle

Vargo, Stephen L. ; Lusch, Robert F. / Inversions of service-dominant logic. In: Marketing Theory. 2014 ; Vol. 14, No. 3. pp. 239-248.
@article{71d2fbb772914ebc9ab450879df907f4,
title = "Inversions of service-dominant logic",
abstract = "Value creation, both its nature and scope, can be better and more accurately understood by inverting six characteristics of goods-dominant logic, or what is also known as “old enterprise logic” or “neoclassical economics,” into a service-dominant-informed perspective. These six inversions include (1) entrepreneurship and the view that value creation is an unfolding, emergent process seen as superordinate to management, (2) effectual processes understood as primary in relation to predictive processes and better for informing actors about the interactive, resource-integrating, collaborate nature of value creation, (3) marketing being fundamental to value creation and taking primacy over manufacturing, (4) innovation as more fundamental to, and descriptive of, value creation than invention, (5) a focus on effectiveness as captured by value in use and value in context for beneficial actors taking precedence over efficiency, which is inherently a firm-centric lens, and finally (6) the the predominant reliance on heuristics rather than rational, calculative decision making.",
keywords = "Effectual processes, entrepreneurship, human actors, service-dominant logic, value creation, value in use",
author = "Vargo, {Stephen L.} and Lusch, {Robert F}",
year = "2014",
month = "9",
day = "1",
doi = "10.1177/1470593114534339",
language = "English (US)",
volume = "14",
pages = "239--248",
journal = "Marketing Theory",
issn = "1470-5931",
publisher = "SAGE Publications Ltd",
number = "3",

}

TY - JOUR

T1 - Inversions of service-dominant logic

AU - Vargo, Stephen L.

AU - Lusch, Robert F

PY - 2014/9/1

Y1 - 2014/9/1

N2 - Value creation, both its nature and scope, can be better and more accurately understood by inverting six characteristics of goods-dominant logic, or what is also known as “old enterprise logic” or “neoclassical economics,” into a service-dominant-informed perspective. These six inversions include (1) entrepreneurship and the view that value creation is an unfolding, emergent process seen as superordinate to management, (2) effectual processes understood as primary in relation to predictive processes and better for informing actors about the interactive, resource-integrating, collaborate nature of value creation, (3) marketing being fundamental to value creation and taking primacy over manufacturing, (4) innovation as more fundamental to, and descriptive of, value creation than invention, (5) a focus on effectiveness as captured by value in use and value in context for beneficial actors taking precedence over efficiency, which is inherently a firm-centric lens, and finally (6) the the predominant reliance on heuristics rather than rational, calculative decision making.

AB - Value creation, both its nature and scope, can be better and more accurately understood by inverting six characteristics of goods-dominant logic, or what is also known as “old enterprise logic” or “neoclassical economics,” into a service-dominant-informed perspective. These six inversions include (1) entrepreneurship and the view that value creation is an unfolding, emergent process seen as superordinate to management, (2) effectual processes understood as primary in relation to predictive processes and better for informing actors about the interactive, resource-integrating, collaborate nature of value creation, (3) marketing being fundamental to value creation and taking primacy over manufacturing, (4) innovation as more fundamental to, and descriptive of, value creation than invention, (5) a focus on effectiveness as captured by value in use and value in context for beneficial actors taking precedence over efficiency, which is inherently a firm-centric lens, and finally (6) the the predominant reliance on heuristics rather than rational, calculative decision making.

KW - Effectual processes

KW - entrepreneurship

KW - human actors

KW - service-dominant logic

KW - value creation

KW - value in use

UR - http://www.scopus.com/inward/record.url?scp=84907064633&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84907064633&partnerID=8YFLogxK

U2 - 10.1177/1470593114534339

DO - 10.1177/1470593114534339

M3 - Article

AN - SCOPUS:84907064633

VL - 14

SP - 239

EP - 248

JO - Marketing Theory

JF - Marketing Theory

SN - 1470-5931

IS - 3

ER -