An expanded and strategic view of discontinuous innovations: deploying a service-dominant logic
- 2.4k Downloads
The service-dominant logic (S-D logic) provides a novel and valuable theoretical perspective that necessitates a rethinking and reevaluation of the conventional literature on innovation. This literature is built upon a goods-dominant logic and has resulted in a restricted and out-moded perspective that overlooks many major discontinuous innovations. In this article, we show how many innovations can be better understood by deploying a S-D logic perspective. We present six S-D logic categories of discontinuous innovation positing that they can help scholars and managers analyze, design and implement breakthrough advances in resource use. We argue that discontinuous innovation can arise by changing any of the customers’ roles of users, buyers and payers on the first dimension. On the second dimension, the firm changes its value creation by embedding operant resources into objects, by changing the integrators of resources, and by reconfiguring value constellations. Finally, we offer some managerial and research implications of this expanded and strategic view of discontinuous innovation.
KeywordsService-dominant logic Discontinuous innovation Growth strategy Marketing Customer
The authors thank the Center for Services Leadership at Arizona State University for its support.
- Berry, L. L., Shankar, V., Parish, J. T., Cadwallader, S., & Dotzel, T. (2006). Creating new markets through service innovation. MIT Sloan Management Review, 47(2), 56–63.Google Scholar
- Christensen, C. M. (1997). The innovator’s dilemma. Boston: Harvard Business School Press.Google Scholar
- Christensen, C. M., Anthony, S. D., & Roth, E. A. (2004). Seeing what’s next. Using the theories of innovation to predict industry change. Boston: Harvard Business School Press.Google Scholar
- Davenport, T. A., Harris, J. G., De Long, D. W., & Jacobson, A. L. (2001). Data to knowledge to results: Building an analytical capability. California Management Review, 43(2), 117–138.Google Scholar
- Edvardsson, B., Gustafsson, A., Johnson, M. D., & Sanden, B. (2000). New service development and innovation in the new economy. Lund, Sweden: Studentlitteratur.Google Scholar
- Goodin, D. (2005). Wikipedia as accurate as Britannica, journal says. Arizona Republic, A16 (16. Dec 2005).Google Scholar
- Goodmann, A. (2005). Winning results with google AdWords. New York: McGraw Hill/Osborne.Google Scholar
- Gourville, J. T. (2005). The curse of innovation: Why innovative new products fail. MSI Report, 05(117), 3–23.Google Scholar
- Hauser, J. R., Tellis, G. J., & Griffin, A. (2005), Research on innovation: A review and agenda for marketing science. Working Paper.Google Scholar
- Lilien, G. L., Kotler, P., & Moorthy, K. S. (1992). Marketing models. Upper Saddle River, NJ: Prentice-Hall.Google Scholar
- Lynn, G. S., Morone, J. G., & Paulson, A. S. (1996). Marketing and discontinuous innovation: The probe and learn process. California Management Review, 38(3), 8–37.Google Scholar
- Michel, S., Vargo, S. L., & Lusch, R. F. (2008). Reconfiguration of the conceptual landscape: A tribute to the service logic of Richard Normann. Journal of the Academy of Marketing Science (Winter), in press.Google Scholar
- MSI (2004). MSI research priorities 2004–2006. Oct 26, 2005. http://www.msi.org/msi/rp0406.cfm#RP-Overview.
- MSI (2006). MSI research priorities 2004–2006. Oct 26, 2005. http://www.msi.org/pdf/MSI_RP06-08.pdf.
- Normann, R. (2001). Reframing business: When the map changes the landscape. Chichester: Wiley.Google Scholar
- Normann, R., & Ramirez, R. (1993). From value chain to value constellation: Designing interactive strategy. Harvard Business Review, 71(4), 65–77.Google Scholar
- Porter, M. E. (1985). Competitive advantage. New York: Free.Google Scholar
- Prahalad, C. K. (2005). The fortune at the bottom of the pyramid: Eradicating poverty through profits: Enabling dignity and choice through markets. Upper Saddle River: Pearson.Google Scholar
- Prahalad, C. K., & Hammond, A. (2002). Serving the world’s poor, profitably. Harvard Business Review, 80(9), 48–57.Google Scholar
- Prahalad, C. K., & Ramaswamy, V. (2000). Co-opting customer competence. Harvard Business Review, 78(1), 79–87.Google Scholar
- Rogers, E. M. (1962). Diffusion of innovations. New York: Free.Google Scholar
- Sheth, J. N., & Mittal, B. (2004). Customer behavior. A managerial perspective. Mason, OH: South-Western, Thomson.Google Scholar
- Smith, A. (2002). An inquiry into the nature and causes of the wealth of nations (1776). Cambridge: IndyPublish.com.Google Scholar
- Vargo, S. L., & Lusch, R. F. (2006). Service-dominant logic: What it is, what it is not, what it might be. In R. F. Lusch, & S. L. Vargo (Eds.), The service dominant logic of marketing: Dialog, debate, and directions (pp. 43–56). New York: M.E. Sharpe.Google Scholar
- Yunus, M. (2003). Banker to the poor. Micro-lending and the battle against world poverty. New York: Public Affairs.Google Scholar