Adopting a service logic in manufacturing: Conceptual foundation and metrics for mutual value creation

Journal of Service Management

Volumn 21, Issue 5, 2010, Pages 564-590

  Grönroos, Christian ^a   Helle, Pekka ^a  

^a HANKEN SCHOOL OF ECONOMICS   (Finland)

Author keywords

Industrial relations; Manufacturing industries; Value added

Indexed keywords

EID: 78149262592     PISSN: 17575818     EISSN: None     Source Type: Journal    
DOI: 10.1108/09564231011079057     Document Type: Article

References (78)

1. Alderson, W. (1957), Marketing Behavior and Executive Action, Richard D. Irwin, Homewood, IL.
2. AMA (2007), “Definition of Marketing”, American Marketing Association, Chicago, IL, October 2007-last update, available at: http://marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx (accessed 25 August 2009).
3. Anderson, J.C. and Narus, J.A. (1999), Business Market Management: Understanding, Creating, and Delivering Value, Prentice-Hall, Englewood Cliffs, NJ.
4. Barry, J. and Terry, T.S. (2008), “Empirical study of relationship value in industrial service”, Journal of Business & Industrial Marketing, Vol. 23 No. 4, pp. 228-241.
5. Brax, S. (2005), “A manufacturing becoming service provider – challenges and a paradox”, Managing Service Quality, Vol. 15 No. 2, pp. 142-155.
6. Brown, S.W., Gustafsson, A. and Witell, L. (2009), “Beyond products”, Wall Street Journal, June, p. 22.
7. CIM (2007), Shape the agenda. Tomorrow's world. Re-evaluating the role of marketing, The Chartered Institute of Marketing, Maidenhead.
8. Courbois, R. and Temple, P. (1975), La methode des “Comptes de surplus” et ses applications macroeconomiques, 160 des Collect, INSEE, Serie C (35), p. 100.
9. Davidsson, N., Edvardsson, B., Gustafsson, A. and Witell, L. (2009), “Degree of service-orientation in the pulp & paper industry”, International Journal of Service Technology and Management, Vol. 1 No. 1, pp. 24-41.
10. Davis, H.S. (1955), Productivity Accounting, University of Pennsylvania Press, Philadelphia, PA, Research studies XXXVII.
11. Day, G. (1990), Market-driven Strategy: Processes for Creating Value, The Free Press, New York, NY.
12. de Chernatony, L., Harris, F. and Dall Olmo Riley, F. (2000), “Added value: its nature, roles, and sustainability”, European Journal Marketing, Vol. 34 Nos 1 / 2, pp. 39-54.
13. Devinney, T.M., Stewart, D.W. and Schocker, A.D. (1985), “A note on the application of portfolio theory: a comment on Cardozo and Smith”, Journal of Marketing, Vol. 49 No. 4, pp. 107-112.
14. Dhar, R. and Glazer, R. (2003), “Hedging customers”, Harvard Business Review, Vol. 81 No. 5, pp. 86-92.
15. Drucker, P.F. (1954), The Practice of Management, Harper Collier, New York, NY.
16. Edvardsson, B., Holmlund, M. and Strandvik, T. (2008), “Initiating business relationships in service-dominant contexts”, Industrial Marketing Management, Vol. 37 No. 3, pp. 339-350.
17. Eggert, A., Ulaga, W. and Hollmann, S. (2006), “Linking customer share to relationship performance: the customer perspective”, ISBM Report No. 10-2006, Institute for the Study of Business Markets, The Pennsylvania State University, University Park, PA.
18. Gebauer, H., Fleisch, E. and Friedli, T. (2005), “Overcoming the service paradox in manufacturing companies”, European Management Journal, Vol. 23 No. 1, pp. 14-26.
19. Gebauer, H., Krempl, R., Fleisch, E.R. and Friedli, T. (2008), “Innovation in product-related services”, Managing Service Quality, Vol. 18 No. 4, pp. 387-404.
20. Gollop, F.M. (1979), “Accounting for intermediate input: the link between sectoral and aggregate measures of productivity growth”, Measurement and Interpretation of Productivity, National Academy of Sciences, Washington, DC.
21. Gosselin, D.P. and Bauwen, G.A. (2006), “Strategic account management: customer value creation through customer alignment”, Journal of Business & Industrial Marketing, Vol. 21 No. 6, pp. 376-385.
22. Grönroos, C. (1990), Service Management and Marketing: Managing the Moments of Truth in Service Competition, Lexington Books, Lexington, MA.
23. Grönroos, C. (1997), “Value-driven relational marketing: from products to resources and competencies”, Journal of Marketing Management, Vol. 13 No. 5, pp. 407-419.
24. Grönroos, C. (2007), Service Management and Marketing, 3rd ed., Wiley, Chichester.
25. Grönroos, C. (2008), “Service logic revisited: who creates value? And who co-creates?”, European Business Review, Vol. 20 No. 4, pp. 298-314.
26. Grönroos, C. (2009), “Marketing as promise management: regaining customer management for marketing”, Journal of Business & Industrial Marketing, Vol. 24 Nos 5 / 6, pp. 351-9.
27. Grönroos, C. and Ojasalo, K. (2004), “Service productivity: toward a conceptualization of the transformation of inputs into economic results in services”, Journal of Business Research, Vol. 57 No. 4, pp. 414-423.
28. Grönroos, C. and Ravald, A. (2009), “Marketing and the logic of service: value facilitation, value creation and co-creation and their marketing implications”, Working Paper 542, Hanken School of Economics, Helsinki.
29. Gummesson, E. (1995), “Relationship marketing: its role in the service economy”, in Ed. Glynn, W.J. and Ed. Barnes, J.G. (Eds), Understanding Services Management, Wiley, New York, NY, pp. 244-268.
30. Gummesson, E. (1998), “Productivity, quality and relationship marketing in service operations”, International Journal of Contemporary Hospitality Management, Vol. 10 No. 1, pp. 4-15.
31. Gummesson, E. (2008), Total Relationship Marketing, Marketing Management, Relationship Strategy, CRM, and a New Dominant Logic for the Value-creating Network Economy, 3rd ed., Butterworth Heinemann, Oxford.
32. Gupta, S. and Lehman, D.R. (2003), “Customers as assets”, Journal of Interactive marketing, Vol. 17 No. 1, pp. 9-24.
33. Gupta, S. and Lehman, D.R. (2005), Managing Customers as Investments, Wharton School, Upper Saddle River, NJ.
34. Gupta, S., Hanssens, D., Hardie, B., Kahn, W., Kumar, V., Lin, N., Ravishanker, N. and Sriram, S. (2006), “Modeling customer lifetime value”, Journal of Service Research, Vol. 9 No. 2, pp. 139-155.
35. Gutman, J. (1982), “A means-end chain model based on consumer categorization processes”, Journal of Marketing, Vol. 46, pp. 60-72.
36. Helle, P. (2009), “Towards understanding value creation from the point of view of service provision”, paper presented at the Conference Report, EIASM Service Marketing Forum, Capri.
37. Helle, P. (2010), “Re-conceptualizing value-creation: from industrial business logic to service business logic”, working paper, Hanken School of Economics, Finland.
38. Holbrook, M.B. (1994), “The nature of customer value – an axiology of services in the consumption experience”, in Ed. Rust, R.T. and Ed. Oliver, R.L. (Eds), Service Quality: New Directions in Theory and Practice, Sage, Thousand Oaks, CA.
39. Jacob, F. and Ulaga, W. (2008), “The transition from product to service in business markets: an agenda for academic inquiry”, Industrial Marketing Management, Vol. 37 No. 3, pp. 247-253.
40. Kowalkowski, C. and Kindström, D. (2009), “Development of industrial service offerings: a process framework”, Journal of Service Management, Vol. 20 No. 2, pp. 156-172.
41. Kowalkowski, C., Brehmer, P.-O. and Kindstrom, D. (2009), “Managing industrial service offerings: requirements on content and processes”, International Journal of Services Technology and Management, Vol. 11 No. 1, pp. 42-63.
42. Kumar, V. and George, M. (2007), “Measuring and maximizing customer equity: a critical analysis”, Journal of the Academy of Marketing Science, Vol. 35 No. 2, pp. 157-171.
43. Kurosawa, K. (1975), “An aggregate index for the analysis of productivity”, Omega, Vol. 3 No. 2, pp. 157-168.
44. Lusch, R.F., Vargo, S.L. and Wessels, G. (2008), “Towards a conceptual foundation for service science: contributions from service-dominant logic”, IBM Systems Journal, Vol. 47 No. 1, pp. 5-14.
45. Mathieu, V. (2001), “Service strategies within the manufacturing sector: benefits, costs and partnership”, International Journal of Service Industry Management, Vol. 12 No. 5, pp. 451-475.
46. Matthyssens, P. and Vandenbempt, K. (1998), “Creating competitive advantage in industrial services”, Journal of Business & Industrial Services, Vol. 13 Nos 4 / 5, pp. 316-328.
47. Normann, R. (2001), Reframing Business: When the Map Changes the Landscape, Wiley, Chichester.
48. Ojasalo, K. (1999), Conceptualizing Productivity in Services, Hanken School of Economics Finland/CERS Center for Relationship Marketing and Service Management, Helsinki.
49. Ojasalo, K. (2007), “Developing industrial services – an empirical study”, The Business Review, Vol. 7 No. 1, pp. 58-62, Cambridge.
50. Oliva, R. and Kallenberg, R. (2003), “Managing the transition from products to services”, International Journal of Service Industry Management, Vol. 14 No. 2, pp. 160-172.
51. Panesar, S.S. and Markeset, T. (2008), “Development of a framework for industrial service innovation management and coordination”, Journal of Quality in Maintenance Engineering, Vol. 14 No. 2, pp. 177-193.
52. Panesar, S.S. and Markeset, T. (2009), “Industrial services innovation process: influencing factors – a case study”, International Journal of Services Technology and Management, Vol. 11 No. 1, pp. 82-102.
53. Parasuraman, A. (2002), “Service quality and productivity: a synergistic perspective”, Managing Service Quality, Vol. 12 No. 1, pp. 6-9.
54. Peter, J.P. and Olson, J.C. (1987), Consumer Behavior. Marketing Strategy Perspectives, Irwin, Homewood, IL.
55. Pineda, A. (1990), “A multiple case study research to determine and respond to management information need using total-factor productivity measurement (TFPM)”, PhD dissertation, University Microfilms International, Virginia Polytechnic Institute and State University, Blacksburg, VA.
56. Pohlen, T. and Coleman, B. (2005), “Evaluating internal operations and supply chain performance using EVA and ABC”, SAM Advanced Management Journal, Vol. 70, pp. 45-58.
57. Prahalad, C.K. (2004), “The co-creation of value – invited commentary”, Journal of Marketing, Vol. 68 No. 1, p. 23.
58. Ramírez, R. (1999), “Value co-production: intellectual origins and implications for practice and research”, Strategic Management Journal, Vol. 20 No. 1, pp. 49-65.
59. Reckwitz, A. (2002), “Toward a theory of social practices: a development in culturalist theorizing”, European Journal of Social Theory, Vol. 5 No. 2, pp. 243-263.
60. Reinartz, W. and Ulaga, W. (2008), “How to sell service more profitably”, Harvard Business Review, Vol. 86 No. 5, pp. 90-96.
61. Rokeach, M.J. (1973), The Nature of Human Values, The Free Press, New York, NY.
62. Rust, R.T. and Oliver, R.L. (1994), “Service quality: insights and managerial implications from the frontier”, in Ed. Rust, R.T. and Ed. Oliver, R.L. (Eds), Service Quality: New Directions for Theory and Practice, Sage, Thousand Oaks, CA, pp. 1-20.
63. Saari, S. (2006), Productivity. Theory and Measurement in Business, Productivity Handbook (In Finnish), MIDO OY.
64. Schatzki, T.R. (2001), “Introduction: practice theory”, in Ed. Schatzki, T.R., Ed. Knorr Cetina, K. and Ed. Savigny, E.V. (Eds), The Practice Turn in Contemporary Theory, Routledge, New York, NY.
65. Sheth, J.N. and Uslay, C. (2007), “Implications of the revised definition of marketing: from exchange to value creation”, Journal of Public Policy & Marketing, Vol. 26 No. 2, pp. 302-7.
66. Storbacka, K. and Nenonen, S. (2009), “Customer relationships and the heterogeneity of firm performance”, Journal of Business & Industrial Marketing, Vol. 24 Nos 5 / 6, pp. 360-372.
67. Ulaga, W. (2003), “Capturing value creation in business relationships: a customer perspective”, Industrial Marketing Management, Vol. 32 No. 8, pp. 677-693.
68. Valk van der, W. (2008), “Service procurement in manufacturing companies: results from three embedded case studies”, Industrial Marketing Management, Vol. 37 No. 3, pp. 301-315.
69. Vargo, S.L. and Lusch, R.F. (2004), “Evolving to a new dominant logic for marketing”, Journal of Marketing, Vol. 68, pp. 1-17.
70. Vargo, S.L. and Lusch, R.F. (2008), “Service dominant logic: continuing the evolution”, Journal of the Academy of Marketing Science, Vol. 36 No. 1, pp. 1-10.
71. Venkatesan, R. and Kumar, V. (2004), “A customer lifetime value framework for customer selections and resource allocation strategy”, Journal of Marketing, Vol. 68 No. 4, pp. 106-125.
72. Webster, F.E. Jr (1994), “Executing the new marketing concept”, Marketing Management, Vol. 3 No. 1, pp. 9-18.
73. Weissenberger-Eibl, M. and Koch, D.J. (2007), “Importance of industrial services and service innovations”, Journal of Management and Organization, Vol. 13 No. 2, pp. 88-101.
74. Woodruff, R.B. (1997), “Customer value: the next source for competitive advantage”, Academy of Marketing Science, Vol. 25 No. 2, pp. 110-122.
75. Woodruff, R.B. and Gardial, S. (1996), Know Your Customers – New Approaches to Understanding Customer Value and Satisfaction, Blackwell, Oxford.
76. Zeithaml, V. (1988), “Consumer perception of price, quality and value: a means-ends-model and synthesis of evidence”, Journal of Marketing, Vol. 52, pp. 2-22.
77. Ravald, A. and Grönroos, C. (1996), “The value concept and relationship marketing”, European Journal of Marketing, Vol. 30 No. 2, pp. 19-30.
78. Vargo, S.L., Maglio, P.P. and Akaka, M.A. (2008), “On value and value co-creation: a service systems and service logic perspective”, European Management Journal, Vol. 26 No. 3, pp. 145-152.