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

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Abstract

This 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 ten 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.

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Notes

  1. Habilitation is for patients that suffer from a disorder or disability, mental or physical, from which they can never fully recover–they cannot be rehabilitated. Habilitation activities aim to help the patient lead a good life despite his/her disorder or disability. The habilitation clinic we studied is an out-patient clinic, open during the daytime, which accepts patients with appointments.

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Correspondence to Per Skålén.

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ᅟ Interview guide, staff at adult habilitation

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Skålén, P., Gummerus, J., von Koskull, C. et al. Exploring value propositions and service innovation: a service-dominant logic study. J. of the Acad. Mark. Sci. 43, 137–158 (2015). https://doi.org/10.1007/s11747-013-0365-2

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