Exploring value propositions and service innovation: a service-dominant logic study

Abstract

This paper has been peer-reviewed but does not include the final publisher proof-corrections or journal pagination. Citation for the original published paper (version of record):Skålen, P., Gummerus, J., Koskull, C., Magnusson, P. (2015) Exploring value propositions and service innovation: a service-dominant logic study. Journal of the Academy of Marketing ABSTRACTThis paper presents an eight-firm study, conducted from the service-dominant logic perspective, which makes a contribution regarding knowledge of the anatomy of value propositions and service innovation. The paper suggests that value propositions are configurations of several different practices and resources. The paper finds that 10 common practices, organized in three main aggregates, constitute and fulfill value propositions: i.e. provision practices, representational practices, and management and organizational practices.Moreover, the paper suggests that service innovation can be equated with the creation of new value propositions by means of developing existing or creating new practices and/or resources, or by means of integrating practices and resources in new ways. It identifies four types of service innovation (adaptation, resource-based innovation, practice-based innovation, and combinative innovation) and three types of service innovation processes (practice-based, resource-based, and combinative). The key managerial insight provided by the paper is that service innovation must be conducted and value propositions must be evaluated from the perspective of the customers' value creation, the service that the customer experiences.Successful service innovation is not only contingent on having the right resources, established methods and practices for integrating these resources into attractive value propositions are also needed.

Triadic Value Propositions: When It Takes More Than Two to Tango

“…Furthermore, SDL literature has not addressed the crafting or adoption of value propositions in practice . Overall though, SDL has been an influential perspective for advancing marketing theory on value propositions, similar to value propositions from a service (eco)system perspective (e.g., Chandler and Lusch 2015;Frow et al 2014) and the practices of forming value propositions Skålén et al 2014). As Truong et al (2012) have noted, there also are considerable commonalities between the SDL framework and more established observations from the Industrial Marketing and Purchasing (IMP) Group regarding interactions of organizations.…”

“…(pp. 1282-1283) Skålén et al (2014) Value propositions are promises of value creation that build on configurations of resources and practices. Practices are grouped into three aggregates: representational, provision, and management and organizational practices.…”

A marketing perspective on business models

“…However, a closer look at this research stream reveals that many authors emphasize that the purpose of the business model is to articulate a firm's value proposition and to propose a Bviable structure of revenues and costs for the enterprise delivering that value^ (Teece 2010, p.178). The value proposition-which explains how the products and services offered by the firm match the needs of the targeted market segmentis a core marketing concept (Frow and Payne 2011;Skålén et al 2015). Thus, marketing academics should be favorably positioned to contribute to this important literature.…”

Editorial for the Special Issue on Business Development and Marketing in Construction

“…Flowing from this the issues of service innovation and service design have yet to be analysed (cf. Shostak, 1984;Romme, 2003;Skålén et al, 2015). Both avenues would give rise to new potential for generating value propositions in construction theory and practice.…”

“…• Despite widespread use of the term value proposition, there is surprisingly little research into their formation and content in marketing and bidding (Skålén et al, 2015). Under SDL value propositions are to be evaluated from the perspective of the co-created value -the potential realisation in use, which, for projects, is the service provision during construction and post-completion outcomes.…”