Expanding understanding of service exchange and value co-creation: a social construction approach

Abstract

According to service-dominant logic (S-D logic), all providers are service providers, and service is the fundamental basis of exchange. Value is co-created with customers and assessed on the basis of value-in-context. However, the extensive literature on S-D logic could benefit from paying explicit attention to the fact that both service exchange and value co-creation are influenced by social forces. The aim of this study is to expand understanding of service exchange and value co-creation by complementing these central aspects of S-D logic with key concepts from social construction theories (social structures, social systems, roles, positions, interactions, and reproduction of social structures). The study develops and describes a new framework for understanding how the concepts of service exchange and value co-creation are affected by recognizing that they are embedded in social systems. The study contends that value should be understood as value-in-social-context and that value is a social construction. Value co-creation is shaped by social forces, is reproduced in social structures, and can be asymmetric for the actors involved. Service exchanges are dynamic, and actors learn and change their roles within dynamic service systems.

Transformative service research and service dominant logic: Quo Vaditis?

“…In other words, the system's environmental context determines its well-being: "Resources such as time, weather, and laws, which are often considered uncontrollable by the individuals and organizations, are integrated -if not relied on -in the value creation process by all service systems (e.g., customers, firms, families, countries)" (Vargo et al, 2008, p. 150). Edvardsson et al (2011), as well as other authors (e.g., Epp and Price, 2011;Lepak et al, 2007), extend such view and consider the extended social system as the context for value co-creation. Edvardsson et al (2011) contend that social structures play an important role in resource integration and value cocreation.…”

“…Edvardsson et al (2011), as well as other authors (e.g., Epp and Price, 2011;Lepak et al, 2007), extend such view and consider the extended social system as the context for value co-creation. Edvardsson et al (2011) contend that social structures play an important role in resource integration and value cocreation.…”

“…Positive and negative, intentional and unintentional, value co-creation and well-being efforts, as well as outcomes, occur within the system boundaries where actors / entities actively or passively co-create value / well-being. The system might, however, have the potential to develop into a more fluid service system, as depicted in the lower half of Figure 1, for example, if the norms, rules, and regulations were to change (Edvardsson et al, 2011). …”

Service Systems Engineering

“…Service logic posits that value is created through collaboration and contextualization. According to service-dominant logic, service is a collaborative process creating context-specific value Edvardsson et al 2011). Collaboration implies that different actors interactively engage in the cocreation of value, moving away from a strict distinction between producer and consumer (Lusch et al 2007;Möslein and Kölling 2007).…”

Applying Enterprise Architecture to Business Networks

“…One can conclude that rules and principles are socially created. Edvardsson et al [2011] stated that constructivist understanding about reality is grounded in the result of human sense making, which can be seen as an interpretive view. In the particular instance of business networks, the researcher not only observes the network structure but also reports his/her understanding about the nature of alternatives regarding network planning.…”