International Journal of Physical Distribution & Logistics Management

Siguaw, Judy A. ; Gassenheimer, Jule B. ; Hunter, Gary L.

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-01-2012-0019

Purpose – While prior studies have examined how loyal customers create value for preferred manufacturers, this study aims to focus on the supply chain and captures the indirect economic and relational benefits and costs of customer value creation on channel intermediaries. Design/methodology/approach – Service-dominant logic is used to explain the rationale behind consumer contributions and supply chain connectedness in an interactive online world. Drawing from the relevant literature, a conceptual model supported by propositions is presented. Findings – As manufacturers utilize consumer contributions, affiliated intermediaries will report having less informational power, providing less value to the channel, greater benefit-based and cost-based dependence, heightened efforts to create channel value, an enhanced reputation and greater sales, and greater collaboration with customers. Research limitations/implications – This conceptual paper is the beginning of an investigation into the pragmatic function of a service-dominant view as it pertains to a marketing channel. As this avenue for research is further developed, it is important that the propositions included in this study first be examined. Practical implications – Awareness of the underlying logic and the resulting impacts should aid channel intermediaries in realizing their own contributions throughout the manufacturer ' s value chain and recognizing changes to their positions of power. As a result, channel intermediaries should be better positioned to assess the health and future prospects of the relationship. Originality/value – This work is the first study to examine potential impacts on the intermediary operating in a channel in which the manufacturer is significantly influenced by consumer contributions.

Flint, Daniel John ; Lusch, Robert F. ; Vargo, Stephen L.

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-12-2012-0350

Purpose – The purpose of this paper is to examine shopper marketing through service-dominant logic and service ecosystem lenses. In doing so, the authors reveal challenges and opportunities for supply chain management. Design/methodology/approach – The work is conceptual, drawing on contemporary service-dominant logic thinking. Findings – Examination of shopper marketing reveals that it is currently stuck in goods-dominant logic and micro-level ways of thinking. By taking a macro service ecosystem view, all actors, including shoppers, are seen as resource integrators seeking resource density. The macro view highlights a significant amount of goods and information flow and variance now being added throughout shopper marketing systems. Research limitations/implications – A guiding framework with appropriate terms defined offers new research directions and new ways practitioners can approach challenges in the industry. Research programs are suggested in the areas of facilitating resource density, examining the extent of ecosystems, measurement, mapping of resources, and creating shopper marketing innovations. Practical implications – This study provides an alternative way of looking at problems that arise in supply chain management planning and execution of shopper marketing initiatives. Originality/value – Few scholastic articles address shopper marketing even within marketing and essentially none do so in supply chain management despite it having significantly disrupted supply chains since 2004. This article offers an overview of shopper marketing and helps supply chain managers identify quickly how they can add value and supply chain management researchers begin to address the challenges.

Ehrenthal, Joachim C.F. ; Gruen, Thomas W. ; Hofstetter, Joerg S

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-02-2013-0028

Purpose – The purpose of this paper is to address the effects of retail out-of-stocks from a service-dominant (S-D) logic view. Design/methodology/approach – Conceptual, combining classic S-D logic research with recent research of S-D logic in supply chains, and applying this to out-of-stocks in a retail setting of fast-moving consumer goods. Findings – The paper unveils out-of-stocks as emergent operant resources that alter and attenuate value creation across manufacturers, retailers, shoppers, users and their networks. The paper develops a model of value co-creation where manufacturer supply and shopper/user demand meet in the retailer ' s realm. Differentiating between shopper and user in a sequential model of value creation, it identifies the shopper as an active entity whose response to out-of-stocks redistributes value within the retail service ecosystem. An additional model is developed that illustrates the novel costs of an out-of-stock as uncovered by the S-D logic perspective, allowing retailers and manufacturers to align their interests in improving on-shelf availability. Research limitations/implications – Moving distribution thought and management towards a goal of service provision, this article suggests three logistics research possibilities: retailer-manufacturer misalignment, spatio-temporal supply-demand mismatch, and shopper-user interaction. Practical implications – This article shows how the S-D perspective can bring previously misaligned incentives of supply chain actors into alignment. Previous goods-dominant research showed little common ground for manufacturers and retailers to jointly improve on-shelf availability. The S-D logic view demonstrates compelling rationale for both parties ' involvement. Originality/value – The paper extends S-D logic literature by considering value attenuation through failures in physical distribution and logistics management, adding that non-availability causes operand resources to become operant and attenuate/redistribute value. The paper extends the out-of-stock literature by providing a theoretical foundation, and by showing the ecosystem effects of out-of-stocks.

Maas, Steffen ; Hartmann, Evi ; Herb, Stefan

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-11-2012-0332

Purpose – This paper aims to apply service-dominant logic thinking to the field of supply chain management (SCM) in order to classify, structure, and analyze different types of supply chain services (SCS) collected from interdisciplinary literature. The authors investigate how value is co-created between supply chain actors and develop research propositions regarding the influence of service type on value co-creation. Design/methodology/approach – Content analysis is employed to research SCS across 218 articles from 28 journals of logistics and SCM, service, finance and accounting, and information systems research. Findings – The occurrence of SCS within the literature is rising, and most SCS mentioned have a relieving as opposed to an enabling function. Also, SCS related to material and information flows dominate the field, whereas finances-flow-related services receive less attention. Finally, the paper provides evidence that different types of SCS require different management approaches. Research limitations/implications – Analyzing the literature and integrating different streams of research are only a first step towards building new theory. To test the developed propositions, further empirical research is encouraged. Practical implications – The paper offers implications for the management of different types of SCS from both the service provider ' s and service customer ' s perspective. Originality/value – The paper provides an interdisciplinary overview of the value proposed by different types of SCS. Furthermore, six service-dominant logic-based research propositions regarding the impact of service type on value co-creation are developed.

Liu, Chun Hsien ; Chen, Ming-Chao ; Tu, Yi-Hsien ; Wang, Chu-Ching

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-02-2013-0039

Purpose – The purpose is to conceptually construct a service-dominant (S-D) logic-based integrated product service system (IPSS) business model. Design/methodology/approach – The model is constructed through literature reviews and inferences. Findings – IPSS model is in compliance with the ten fundamental premises of S-D logic as well as conforming to triple bottom lines of sustainability. Research limitations/implications – To convert a firm from goods-centric model to service-centric IPSS model is not easy. There are quite a few challenges to be overcome. Practical implications – There are many successful cases adopting service-centric business model. The key success factors are to be identified in the future studies. Originality/value – It is the first paper discussing the sustainability of IPSS model and its relationship with S-D logic.

Hammervoll, Trond ; Halse, Lise Lillebrygfjeld ; Engelseth, Per

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-11-2012-0335

Purpose – The paper aims to explore the effects of geographic proximity among firms in value networks on service provision and service exchange. Design/methodology/approach – A case study of the offshore supply vessel shipbuilding and shipping cluster in the North-Western Møre region of Norway with focus on the new ship contracting process. Findings – The case study reveals how service provision and service exchange are facilitated by geographical proximity among firms. Research limitations/implications – Study findings should be validated in further research, and the effects of other forms of proximity (cultural, social, cognitive and institutional) on co-creation of value also need to be considered. Considering the role of operant resources in developing competence in clusters and wider value networks offers interesting opportunities for further research. Originality/value – This study proposes an alternative view of co-creation of value in value networks and responds to calls for research on how value network attributes affect aspects of co-creation of value: service provision and service exchange. The study contributes to more knowledge on the systemic nature of value creation in value networks.

Wittmann, C. Michael ; Nowicki, David R ; Pohlen, Terry L ; Randall, Wesley S

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-11-2012-0331

Purpose – Research suggests that service-dominant logic (SDL) is well suited to support supply chain management (SCM) research and practice. Qualitative research has shown that SDL is particularly consistent with an outcome-based supply chain strategy known as performance-based logistics (PBL). The purpose of this paper is to extend theory and practice by exploring the degree to which SDL is utilized in practice. Specifically, PBL is examined for consistency with the underlying fundamental premises (FPs) of SDL. In doing so, this paper answers the positive question, “what exists”, at the intersection of SDL and SCM. Design/methodology/approach – This study employs a mixed methodological approach. First, the FPs of SDL are operationalized using the language of PBL. The PBL FPs are tested quantitatively through an online survey of 52 supply chain PBL experts. A qualitative analysis is conducted using comments associated with each premise. Findings – The survey results suggest that PBL is consistent with SDL. These results indicate that PBL is a supply chain context of SDL. Originality/value – This is one of the first works to examine the degree to which SDL concepts are being utilized in practice.

Chakkol, Mehmet ; Johnson, Mark ; Raja, Jawwad ; Raffoni, Anna

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-03-2013-0064

Purpose – This paper aims to adopt service-dominant logic (SDL) to empirically explore network configurations resulting from the provision of goods, goods and services, and solutions. Design/methodology/approach – This paper uses a single, in-depth, exploratory case study in a truck manufacturer and its supply network. An abductive approach is adopted. In total, 54 semi-structured interviews were conducted. Findings – Three value propositions are clearly discernible within the truck provider. These range from a truck to a “solution”. These propositions have different supply network configurations: dyadic, triadic and tetradic. The extent to which different network actors contribute to value co-creation varies across the offerings. Research limitations/implications – This paper is based on a single, in-depth case study developed in one industrial context. Whilst this represents an appropriate approach given the exploratory nature of the study, further empirical investigation is needed across different industries. Originality/value – This paper is one of the first to empirically examine supply networks using SDL. A rich understanding of the challenges faced by a truck manufacturer in providing different value propositions and the resulting network configurations are discussed. In so doing, evidence is provided of a more complex, tetradic network configuration for solutions, with varying degrees of interplay between actors in the flow of operand and operant resources to create value.

Hammervoll, Trond

2014 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-02-2013-0024

Purpose – The purpose of this paper is to consider inter-organisational issues in supply chain relationships (SCRs) with a view to advancing research on co-creation of value in the service dominant logic (SDL) field. Design/methodology/approach – The study presents a conceptual analysis of current ideas on purchasing and SCRs with special emphasis on inter-organisational collaboration as viewed from exchange- and production economy perspectives. Important types of service buyers and sellers provide in order to co-create value in SCRs are explored. Findings – Both exchange- and production economy perspectives offer useful insights for the study of co-creation of value in SCRs. The exchange economy perspective recognises service provision in terms of information sharing, adaptation and commitment, while the production economy perspective recognises service provision in terms of production proficiency, craftsmanship and entrepreneurship. Research limitations/implications – SDL researchers should recognise the relevance of both exchange- and production economy perspectives in further study of co-creation of value in SCRs. Future research should consider how specific types of service provision are affected by operant resources as well as other important SDL concepts, such as trust, buyer involvement and relational orientation. Originality/value – This paper considers specific types of service provision in SCRs for the purpose of co-creation of value.