Online citations, reference lists, and bibliographies.
← Back to Search

On Value And Value Co-creation: A Service Systems And Service Logic Perspective

Stephen L. Vargo, P. Maglio, M. Akaka
Published 2008 · Economics

Cite This
Download PDF
Analyze on Scholarcy
Summary The creation of value is the core purpose and central process of economic exchange. Traditional models of value creation focus on the firm's output and price. We present an alternative perspective, one representing the intersection of two growing streams of thought, service science and service-dominant (S-D) logic. We take the view that (1) service, the application of competences (such as knowledge and skills) by one party for the benefit of another, is the underlying basis of exchange; (2) the proper unit of analysis for service-for-service exchange is the service system, which is a configuration of resources (including people, information, and technology) connected to other systems by value propositions; and (3) service science is the study of service systems and of the co-creation of value within complex configurations of resources. We argue that value is fundamentally derived and determined in use - the integration and application of resources in a specific context - rather than in exchange - embedded in firm output and captured by price. Service systems interact through mutual service exchange relationships, improving the adaptability and survivability of all service systems engaged in exchange, by allowing integration of resources that are mutually beneficial. This argument has implications for advancing service science by identifying research questions regarding configurations and processes of value co-creation and measurements of value-in-use, and by developing its ties with economics and other service-oriented disciplines.
This paper references
The Service-dominant Logic of Marketing: Dialog, Debate, and Directions
R. Lusch (2006)
Fundamentals of service science
P. Maglio (2008)
Understanding Resource Management
J. A. Constantin (1994)
The Management of Technology: A Production and Operations Management Perspective
C. Gaimon (2008)
Understanding Resource Management: How to Deploy Your People, Products, and Processes for Maximum Productivity
J. A. Constantin (1994)
The Wealth of Nations (1776) New York: The Modern Library
A Smith (2000)
Principles of Economics (1890)
A. Marshal (1927)
Services science: A new academic discipline? Available at
Toward a science of services
H. Chesbrough (2005)
Service-dominant logic as a foundation for a general theory. In The Service-Dominant Logic of Marketing: Dialog
R. F. Lusch (2006)
The new discipline of services science: It's a melding of technology with an understanding of business processes and organization – and it's crucial to the economy's next wave
P Horn (2005)
Beware of Economists Bearing Greek Symbols
Emanuel Derman (2005)
A research manifesto for services science
H. Chesbrough (2006)
The Wealth of Nations (1776)
A. Smith (2000)
The service - dominant logic of marketing : A review and assessment
L. Walras (2008)
Service-dominant logic: continuing the evolution
Stephen L. Vargo (2008)
Managing Nano-Bio-Info-Cogno Innovations: Converging Technologies in Society
W. Bainbridge (2006)
Cutting Corners and Working Overtime: Quality Erosion in the Service Industry
Rogelio Oliva (2001)
From Principles of Economics
A. Marshall (1963)
What Consumer Research Is
B. Calder (1987)
Steps toward a science of service systems
J. Spohrer (2007)
Problems and Strategies in Services Marketing
Valarie A. Zeithaml (1985)
Services in society
S. L. Vargo (2005)
NBIC convergence and technology coevolution: Towards a services science to increase productive capacity
J Spohrer (2006)
Service science: Catalyst for change in business school curricula
M. M. Davis (2008)
Services in Society and Academic Thought: An Historical Analysis
Stephen L. Vargo (2005)
Reframing Business: When the Map Changes the Landscape
R. A. Normann (2001)
Service systems, service scientists, SSME, and innovation
P. Maglio (2006)
From products to service: Divergences and convergences of logics
S L Vargo (2008)
Distinguished Professor at the University of Hawaii at Manoa. His primary research is in marketing theory and consumers' evaluative reference scales. He has published in the Journal of Marketing
Stephen L Vargo Is Shidler
A Treatise on Political Economy
G. Opdyke (1973)
The Emergence of Service Science: Toward Systematic Service Innovations to Accelerate Co‐Creation of Value
J. Spohrer (2008)
Principles of the Political Economy (1885)
J. S. Mill (1929)
Principles of the Political Economy (1885). Reprint, London: Longmans
J S Mill (1929)
NBIC convergence and technology-business coevolution: Towards a services science to increase productive capacity
J. Spohrer (2006)
Aristotle in the 21st Century
S. Fleetwood (1997)
1751) Della Moneta
F Galiani
Forensic Entomology: An Introduction
Leon G. Higley (2009)
Marketing as Production: The Development of a Concept:
D. Dixon (1990)
Service science: At the intersection of management, social, and engineering sciences
R. C. Larson (2008)
The next revolution in interactions
B C Johnson (2005)
The Service System Is the Basic Abstraction of Service Science
J. Spohrer (2008)
Principles of Economics
F. E. (1890)
The Origin of Wealth - Evolution, Complexity, and the Radical Remaking of Economics
Eric D. Beinhocker (2007)
Legal research topics in user-centric services
Olli Pitkänen (2008)
Understanding Resource Management. The Planning Forum
J A Constantin (1994)
From goods to service(s): Divergences and convergences of logics
Stephen L. Vargo (2008)
The elements of political economy.
Francis Wayland (1852)
Business services as communication patterns: A work practice approach for analyzing service encounters
R. Clarke (2008)
Evolving to a New Dominant Logic for Marketing
Stephen L. Vargo (2004)
Designing a service science discipline with discipline
R. Glushko (2008)
Politics (4th century B.C.). H. Rackham, trans
Aristotle (1959)
The service-dominant logic of marketing: A review and assessment. Review of Marketing Research
S L Vargo (2008)
From value chain to value constellation: designing interactive strategy.
R. Normann (1993)

This paper is referenced by
A model-driven software engineering workflow and tool architecture for servitised manufacturing
E. Ntanos (2018)
Challenging the orthodoxy of value co-creation theory: A contingent view of co-production in design-intensive business services
Mark Lehrer (2012)
Interlinking Service Delivery Innovation And Service Quality: A Conceptual Framework
Arif Mohammad Arshad (2015)
Aligning Value and Implementation in Service Design: A Systemic Approach
A. Golnam (2012)
The Need for Model Engineering
S. D. Kinderen (2017)
Ethics: Value Co-Creation
M. Akaka (2015)
Hugh Pattinson (2009)
Editorial Column—Smart Things as Service Providers: A Call for Convergence of Disciplines to Build a Research Agenda for the Service Systems of the Future
A. Medina-Borja (2015)
How Service Innovation Contributes to Co-Create Value in Service Networks
M. V. Ciasullo (2016)
An Introduction to a Value Co-Creation Model. Viability, Syntropy and Resonance in Dyadic Interaction
S. Barile (2013)
Supporting manufacturing companies in their move toward services
D. Sangiorgi (2012)
The role of product involvement and sensory brand experience on customer engagement behaviour
Fernandez Tello de Meneses (2014)
Designing modeling notations readers understand
G. Popescu (2016)
The effect of system processes and structures on the performance of health care delivery systems: a mixed-method approach
C. Heredero (2013)
Managing for Media Anarchy: A Corporate Marketing Perspective
M. Bruce (2013)
New Hypothesis on Service Management within the Global World
I. Plumb (2011)
Applying a Taxonomy as a Framework to Understand Co-Creation as an Approach to Information Systems Development
K. Kautz (2018)
Elements to organize the third place that promotes sustainable relationships in service businesses
D. Sugiyama (2015)
Organizing for Commons-Enabling Decision-Making Under Conflicting Institutional Logics in Social Entrepreneurship
C. Rossignoli (2018)
Engagement within a service system: a fuzzy set analysis in a higher education setting
Max Sim (2018)
Buyer-seller interaction in facility services
S. Guercini (2015)
Service encounter thinklets: how to empower service agents to put value co‐creation into practice
T. Giesbrecht (2017)
Value co-creation, dynamic capabilities and customer retention in industrial markets
Michael W. Preikschas (2014)
Customer-dominant logic: foundations and implications
Kristina Heinonen (2015)
Enabling service co-production: a theory-building case study
A. Grace (2019)
Communicative skills that support value creation: A study of B2B interactions between customers and customer service representatives
N. Salomonson (2012)
Transformative service research and service dominant logic: Quo Vaditis?
V. Kuppelwieser (2016)
Evolution of a service ecosystem: Longitudinal evidence from multiple shared services centers based on the economies of worth framework
A. Banoun (2016)
A step-by-step approach to social marketing in energy transition
R. Smaliukienė (2019)
Tourists’ experiential value co-creation through online social contacts: Customer-dominant logic perspective
Daisy X.F. Fan (2020)
The Employee as Active Consumer of HRM: Explaining Consumer Behaviour Using the AMO Theory
Robin Leijdekkers (2017)
A framework for innovative service design
Olivier Furrer (2016)
See more
Semantic Scholar Logo Some data provided by SemanticScholar