An Empirical Examination of Service Dominant Logic: The Theory of the Network

Marketing scholars question the ability of the 4Ps to explain higher order phenomena in modern marketing. Scholars contend that marketing's historical framework, based in product centric economic theory, constrains the 4Ps ability to form a foundation for a general theory of marketing. The focus on value embedded in product fails to explain knowledge-based intangible sources of competitive advantage. In response to this concern a new dominant logic for marketing called service-dominant logic (S-D Logic) has been proposed. However, not all scholars are supportive of S-D Logic. Still nescient, S-D Logic lacks a theoretic model, operationalized constructs, and relationships between those constructs. This study addresses those deficiencies by: (1) generation of a grounded theory of a performance-oriented network; (2) empirical assessment of the S-D Logic literature; and (3) development of an inductively generated theory of S-D Logic to include constructs, relationships, outcomes, and hypothesis. This investigation provides an important set of research findings. The resultant service-oriented network theory suggests a theoretic structure for S-D Logic. Use of grounded theory provides a strong empirical foundation based in a leading edge multi-national market segment composed corporations and programs worth hundreds of billions of dollars. The analysis drew upon 44 field interviews and follow-up exchanges. Multiple member checking sessions generated practitioner confirmation of the research conclusions. The work provides actionable theoretical and practical implications. This investigation provides a link between S-D Logic as a foundation for a general theory of marketing and initial model of suggestive of such theory. For the practitioner the service-oriented network model provides actionable constructs. The antecedents identified are largely influencable by inter-firm leadership and provides them a mechanism to tailor the specific service-oriented strategy to support the desired network value propositions.