The service-dominant logic and a hierarchy of operant resources: developing masterful operant resources and implications for marketing strategy

Abstract

Marketing's evolution toward a new dominant logic requires the focus of marketing to be on the intangible, dynamic, operant resources that are at the heart of competitive advantage and performance. First, building on resourceadvantage theory's notion of basic resources and higher-order resources, this article proposes a hierarchy of basic, composite, and interconnected operant resources. Second, reviewing research on business strategy and marketing strategy, several resources that correspond to the proposed hierarchy are identified and discussed. Third, the notion of developing masterful operant resources is introduced. Fourth, based on the proposed hierarchy and the notion of masterful operant resources, some exemplars of potential research avenues for marketing strategy are provided. Finally, the article concludes with the discussion of implications for marketing practitioners, researchers, and educators. In sum, this article extends and elaborates the concept of operant resources in the servicedominant logic of marketing.Marketing's evolution toward a service-dominant (S-D) logic requires a focus on the intangible, dynamic resources that form the heart of competitive advantage and performance (Vargo and Lusch 2004;Lusch and Vargo 2006a). That is, differentiating between operand resources (those on which an act or operation is performed) and operant resources (those that act on other resources), marketing should focus on specialized skills and knowledge as operant resources that provide competitive advantage. However, marketing's shift to a focus on operant resources raises several questions: What is a resource? What are the kinds of operand and operant resources? How can previous research (e.g., on resources, competences, resourceadvantage theory, capabilities, and dynamic capabilities) inform marketing's understanding of operant resources? Within the S-D logic, can operant resources be arranged in a hierarchical manner? Which specific operant resources need to be investigated further?As to what a resource is, resource-advantage theory defines resources as the "tangible and intangible entities available to the firm that enable it to produce efficiently and/or effectively a market offering that has value for some market segment(s)" (Hunt 2000b, p.138). As to exemplars of operand and operant resources, while operand resources are typically physical (e.g., raw materials), operant resources are typically human (e.g., the skills and knowledge of individual employees), organizational (e.g., controls, routines, cultures, competences), informational (e.g., knowledge about market segments, competitors, and technology), and relational (e.g., relationships with competitors, suppliers, and customers) (Hunt 2004).As to how previous research can inform marketing's understanding of operant resources, because of how Constantin and Lusch (1994) initially conceptualized operant resources, concepts such as competences, capabilities, and dynamic capabilities can be viewed as operant resources and, therefore, within the S-D logic....

Game-changers: dynamic capabilities’ influence on service ecosystems

“…This is in line with Madhavaram and Hunt (2008), who suggested that dynamic capabilities can be viewed as operant resources, a stance also taken by Karpen et al (2015). Thus, the present study adopts the following definition of dynamic capabilities: dynamic capabilities are operant resources, working upon other operand and operant capabilities, that allow actors to systematically influence resource integration and institutions.…”

“…To date, the majority of dynamic capability researchers appear to agree that there are several types of capabilities, and that they exist at different orders, i.e., within a hierarchy of capabilities (Hine et al, 2014;Madhavaram and Hunt, 2008). While the original division was one between ordinary (non-dynamic) and dynamic capabilities (cf., Barreto, 2010), recently dynamic capabilities have been further divided into higher-and lower-order capabilities (Hine et al, 2014;Schilke, 2014).…”

B2B relationship calculus: quantifying resource effects in service-dominant logic

“…It provides an initial quantified perspective on the influence of what Madhavaram and Hunt (2008) term Binterconnected^op-erant resources that hold the potential to become Bmasterful^operant resources. The study brings together previously disparate perspectives from the technology management and marketing disciplines to create a new, holistic framework linking seller resources with buyer technology assimilation results that help capture S-D logic's co-creation of value element.…”

“…To date, though, little quantitative analysis has been conducted to test the impact of these resources on value. Research has focused instead on classification systems (Madhavaram and Hunt 2008), consumer behavior (Arnould 2005), and conceptual integration into existing knowledge domains such as innovation theory (Michel et al 2008). Recent qualitative studies have highlighted the importance of sellers customizing offerings and communicating value in customer-specific terms (Tuli et al 2007;Ulaga and Reinartz 2011).…”

Step-Change: Micro-Entrepreneurs’ Entry into the Middle-Class Market

“…Madhavaram and Hunt (2008) define resources as consisting of financial, physical, legal, human, organizational, informational, and relational resources. All these types of resources may be needed to adequately serve UMC customers, and their availability cannot be taken for granted in subsistence contexts.…”