Abstract
Based on an analysis of the core concepts of the two paradigms “Service-dominant Logic” (SDL) and “Circular Economy” (CE), this research concludes that the concepts of SDL need to be extended to cover the impacts of the use of material resources and infrastructure which are inseparable from service-for-service exchange. Consequently, SDL’s concept of “value” as something entirely subjective and contextual, should be adjusted to reflect the massive impacts of material resource use in service-for-service exchange. The research concludes that an integration between the two paradigms is possible and would be beneficial for both. It would provide SDL with a “sustainability compass” and CE with a set of productive concepts that could be helpful in the identification of areas where service intervention could support more circularity in processes and actor networks and help design and develop service models and practices in support of the transition to a circular economy.
Highlights
Since the publication of the article “Evolving to a New Dominant Logic for Marketing” by Stephen Vargo and Robert Lusch in 2004 [1], Service-dominant Logic (SDL) has evolved to one of the most influential streams in service studies [2]
Starting from an analysis of value cocreating processes between two actors, a provider of a value proposition and a customer, SDL has evolved to a general theory of the market and value creation processes in society that puts service and service-for-service exchange at the center of the analysis
I draw the following two main conclusions: Conclusion 1: The material basis of resource integration, which relies on large-scale infrastructure production and consumption systems, has significant environmental and social impacts on service provision
Summary
Since the publication of the article “Evolving to a New Dominant Logic for Marketing” by Stephen Vargo and Robert Lusch in 2004 [1], Service-dominant Logic (SDL) has evolved to one of the most influential streams in service studies [2]. Starting from an analysis of value cocreating processes between two actors, a provider of a value proposition and a customer, SDL has evolved to a general theory of the market and value creation processes in society that puts service and service-for-service exchange at the center of the analysis. Actors integrate their resources to cocreate value for themselves or another party, they operate as part of larger service ecosystems that can be identified at different levels of aggregation (micro, meso and macro), with their actions being supported and constrained by institutions (shared actor-created norms, rules, conventions etc.) which may be subject to modification in the course of the interactions. It has seen a boost in development and recognition through the support from organizations like the Ellen MacArthur Foundation (EMF), the incorporation into political programs like the European Green Deal (2019) and the Circular Economy Action Plans (of 2015 and 2020) of the European Commission as well as national and subnational policies and programs
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