Abstract
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.
Similar content being viewed by others
Notes
As suggested by Lusch and Vargo (2006, p. 282), we use the plural term “services” in a GDL context and the singular “service” in the SDL context.
References
Arndt, J. (1967). Role of product-related conversations in the diffusion of a new product. Journal of Marketing Research, 4(3), 291–295.
Atuahene-Gima, K. (2005). Resolving the capability-rigidity paradox in new product development. Journal of Marketing, 69, 61–83 (October 2005).
Bass, F. M. (1969). A new product growth model for consumer durables. Management Science, 15(5), 215–227.
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.
Bitner, M. J., Brown, S. W., & Meuter, M. L. (2000). Technology infusion in service encounters. Journal of the Academy of Marketing Science, 28(1), 138–149.
Chandy, R. K., & Tellis, G. J. (1998). Organizing for radical product innovation: The overlooked role of willingness to cannibalize. Journal of Marketing Research, 35(4), 474–487.
Christensen, C. M. (1997). The innovator’s dilemma. Boston: Harvard Business School Press.
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.
Cowell, D. (1988). New service development. Journal of Marketing Management, 13(3), 296–312.
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.
de Brentani, U., & Ragot, E. (1996). Developing new business-to-business professional services: What factors impact performance? Industrial Marketing Management, 25(6), 517–530.
Edvardsson, B., Gustafsson, A., Johnson, M. D., & Sanden, B. (2000). New service development and innovation in the new economy. Lund, Sweden: Studentlitteratur.
Gatignon, H., & Robertson, T. S. (1989). Technology diffusion: An empirical test of competitive effects. Journal of Marketing, 53(1), 35–49.
Goodin, D. (2005). Wikipedia as accurate as Britannica, journal says. Arizona Republic, A16 (16. Dec 2005).
Golder, P. N., & Tellis, G. J. (1997). Will it ever fly? Modeling the takeoff of really new consumer durables. Marketing Science, 16(3), 256–270.
Goodmann, A. (2005). Winning results with google AdWords. New York: McGraw Hill/Osborne.
Gourville, J. T. (2005). The curse of innovation: Why innovative new products fail. MSI Report, 05(117), 3–23.
Hauser, J. R., Tellis, G. J., & Griffin, A. (2005), Research on innovation: A review and agenda for marketing science. Working Paper.
Kim, N., Chang, D. R., & Shocker, A. D. (2000). Modeling intercategory and generational dynamics for a growing information technology industry. Management Science, 46(4), 496–512.
Lilien, G. L., Kotler, P., & Moorthy, K. S. (1992). Marketing models. Upper Saddle River, NJ: Prentice-Hall.
Lukas, B. A., & Ferrell, O. C. (2000). The effect of market orientation on product innovation. Journal of the Academy of Marketing Science, 28(2), 239–247.
Lusch, R. F., & Vargo, S. L. (2006). Service-dominant logic: Reactions, reflections, and refinements. Journal of Marketing Theory, 6(3), 281–288.
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.
Magnusson, P. R., Matthing, J., & Kristensson, P. (2003). Managing user involvement in service innovation. Journal of Service Research, 6(2), 111–124.
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.
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.
Normann, R., & Ramirez, R. (1993). From value chain to value constellation: Designing interactive strategy. Harvard Business Review, 71(4), 65–77.
Porter, M. E. (1985). Competitive advantage. New York: Free.
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.
Prahalad, C. K., & Hammond, A. (2002). Serving the world’s poor, profitably. Harvard Business Review, 80(9), 48–57.
Prahalad, C. K., & Ramaswamy, V. (2000). Co-opting customer competence. Harvard Business Review, 78(1), 79–87.
Robertson, T. S., & Gatignon, H. (1986). Competitive effects on technology diffusion. Journal of Marketing, 50, 1–12 (July).
Rogers, E. M. (1962). Diffusion of innovations. New York: Free.
Rogers, E. M. (1976). New product adoption and diffusion. Journal of Consumer Research, 2(4), 290–301.
Rust, R., Lemon, K. N., & Zeithaml, V. A. (2004). Return on marketing: Using customer equity to focus marketing strategy. Journal of Marketing, 68(1), 109–127.
Sheth, J. N., & Mittal, B. (2004). Customer behavior. A managerial perspective. Mason, OH: South-Western, Thomson.
Shostack, G. L. (1977). Breaking free from product marketing. Journal of Marketing, 41(2), 73–80.
Smith, A. (2002). An inquiry into the nature and causes of the wealth of nations (1776). Cambridge: IndyPublish.com.
Sood, A., & Tellis, G. J. (2005). Technological evolution and radical innovation. Journal of Marketing, 69(3), 152–168.
Sorescu, A. B., Chandy, R. K., & Prabhu, J. C. (2003). Sources and financial consequences of radical innovation: Insights from pharmaceuticals. Journal of Marketing, 67, 82–102 (October 2003).
Sultan, F., Farley, J. U., & Lehmann, D. R. (1990). A meta-analysis of applications of diffusion models. Journal of Marketing Research, 27(1), 70–77.
Sundbo, J. (1997). Management of innovation in services. The Service Industries Journal, 17(3), 432–455.
Tax, S. S., & Stuart, I. (1997). Designing and implementing new services: The challenges of integrating service systems. Journal of Retailing, 73(1), 105–134.
Urban, G. L., Weinberg, B. D., & Hauser, J. R. (1996). Premarket forecasting of really-new products. Journal of Marketing, 60, 47–60 (January).
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1–17 (January 2004).
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.
Yunus, M. (2003). Banker to the poor. Micro-lending and the battle against world poverty. New York: Public Affairs.
Zhou, K. Z., Yim, C. K. (B.), & Tse, D. K. (2005). The effects of strategic orientations on technology- and market-based breakthrough innovations. Journal of Marketing, 69, 42–60.
Acknowledgement
The authors thank the Center for Services Leadership at Arizona State University for its support.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Michel, S., Brown, S.W. & Gallan, A.S. An expanded and strategic view of discontinuous innovations: deploying a service-dominant logic. J. of the Acad. Mark. Sci. 36, 54–66 (2008). https://doi.org/10.1007/s11747-007-0066-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11747-007-0066-9