Linking Service Dominant Logic and Strategic Business Practice
Service dominant (S D) logic can function as a strategic business logic that portrays creating superior value in conjunction with rather than for customers as a source of competitive advantage for organizations. From this perspective, strategy is about making choices in terms of how to best facilitate and enhance value cocreation for mutual and long term betterment. While the literature has pointed out the managerial merits of cocreating value, less is known about the organizational capabilities necessary to execute S D logic in practice. This article devises an S D orientation, specified as a portfolio of six strategic capabilities, namely individuated, relational, ethical, empowered, developmental, and concerted interaction capability. In combination, these six strategic capabilities constitute a cocreation capability. The authors develop the conceptual model of S D orientation through (a) an in depth literature review and (b) input from 21 expert academics. Conceptualizing S D orientation provides a foundation for bridging S D logic and strategy research with a more general framework, and for guiding much needed empirical research that will inform managers. From a managerial point of view, S D orientation provides a holistic approach to align the organization with its value network partners. The article also sets out an agenda for future research.