Service Innovation: A Service-Dominant Logic Perspective1
Abstract
In this article, we offer a broadened view of service innovation—one grounded in service-dominant logic—that transcends the tangible–intangible and producer–consumer divides that have plagued extant research in this area. Such a broadened conceptualization of service innovation emphasizes (1) innovation as a collaborative process occurring in an actor-to-actor (A2A) network, (2) service as the application of specialized competences for the benefit of another actor or the self and as the basis of all exchange, (3) the generativity unleashed by increasing resource liquefaction and resource density, and (4) resource integration as the fundamental way to innovate. Building on these core themes, we offer a tripartite framework of service innovation: (1) service ecosystems, as emergent A2A structures actors create and recreate through their effectual actions and which offer an organizing logic for the actors to exchange service and cocreate value; (2) service platforms, which enhance the efficiency and effectiveness of service exchange by liquefying resources and increasing resource density (facilitating easy access to appropriate resource bundles) and thereby serve as the venue for innovation; and (3) value cocreation, which views value as cocreated by the service offer(er) and the service beneficiary (e.g., customer) through resource integration and indicate the need for mechanisms to support the underlying roles and processes. In discussing these components, we consider the role of information technology—both as an operand resource and as an operant resource—and then examine the implications for research and practice in digitally enabled service innovation.
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Platform users' consumption defines the value, suggesting that value is created in use rather than in exchange.
“Ecosystem research emphasizes that platform users' consumption defines the value (Autio & Thomas, 2018;Henfridsson et al., 2018), suggesting that value is created”
From What role do data network effects play for multihoming complements? An empirical analysis of platform complementors’ strategies for consumer value creation (2025) · cites this paper as Lusch & Nambisan, 2015
Service innovation research emphasizes that value is created in use by multiple actors, making digital innovation a collaborative process of resource integration.
“The emerging literature on service innovation (Barrett et al. 2015;Lusch and Nambisan 2015), including work on value cocreation (Grover and Kohli 2012;Sarker et al. 2012), underlines how value is created in use by many actors, suggesting that digital innovation is a collaborative effort of integrating resources (see Malhotra et al. 2005).”
From Recombination in the open-ended value landscape of digital innovation (2018) · cites this paper as Lusch and Nambisan 2015
Using digital resources rather than products or services allows finer-grained study of value creation and capture in digital innovation.
“Instead of notions such as products (Yoo et al. 2010) or services (Barrett et al. 2015;Lusch and Nambisan 2015), the notion of digital resources increases the granularity by which the creation and capture of value can be studied in digital innovation.”
From Recombination in the open-ended value landscape of digital innovation (2018) · cites this paper as Lusch and Nambisan 2015
The service innovation and platform/network effects literatures lack a vocabulary and coherent framework for use recombination and its relation to value creation and capture in digital innovation.
“Even in the service innovation literature (Barrett et al. 2015;Lusch and Nambisan 2015), where value-in-use is emphasized, and in the platform and network effects literature (Gawer 2014;Parker et al. 2016), where demand and user adoption are important, there is a lack of a vocabulary and coherent framework for dealing with use recombination and how it relates to value creation and capture in digit”
From Recombination in the open-ended value landscape of digital innovation (2018) · cites this paper as Lusch and Nambisan 2015
Service innovation literature tends to equate recombination with design.
“With its emphasis on resource integration, the service innovation literature tends to equate recombination with design.”
From Recombination in the open-ended value landscape of digital innovation (2018) · cites this paper as Lusch and Nambisan 2015
The research direction complements existing thinking on massive recombination and resource integration.
“The research direction posed by this research commentary complements existing thinking on massive recombination (Flath et al. 2017;Yoo et al. 2010;Yoo et al. 2012) and resource integration (e.g.Lusch and Nambisan 2015).”
From Recombination in the open-ended value landscape of digital innovation (2018) · cites this paper as Lusch and Nambisan 2015
Information technology can nurture better health care along with cost reduction and develop service innovation.
“Information technology can nurture better health care along with cost reduction and develop service innovation [35,36].”
From Improving the Theoretical Understanding Toward Patient-Driven Health Care Innovation Through Online Value Cocreation: Systematic Review (2020) · cites this paper as [36]
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Autio, E., Nambisan, S., Thomas, L. D. W., & Wright, M. (2018) · Strategic Entrepreneurship Journal · doi:10.1002/sej.1266 · Cited by 1,738 · see citing works
Self-citationService innovation in the digital age: Key contributions and future directions
Barrett, M., Davidson, E., Prabhu, J., & Vargo, S. L. (2015) · MIS Quarterly · doi:10.25300/misq/2015/39:1.03 · Cited by 956 · see citing works
Hein, A., Schreieck, M., Riasanow, T., Setzke, D. S., Wiesche, M., Böhm, M., & Krcmar, H. (2020) · Electronic Markets · doi:10.1007/s12525-019-00377-4 · Cited by 945 · see citing works
Smart tourism destinations: ecosystems for tourism destination competitiveness
Boes, K., Buhalis, D., & Inversini, A. (2016) · International Journal of Tourism Cities · doi:10.1108/ijtc-12-2015-0032 · Cited by 734 · see citing works
Maneuvering in Poor Visibility: How Firms Play the Ecosystem Game when Uncertainty is High
Dattée, B., Alexy, O., & Autio, E. (2018) · Academy of Management Journal · doi:10.5465/amj.2015.0869 · Cited by 567 · see citing works
Growing on Steroids: Rapidly Scaling the User Base of Digital Ventures Through Digital Innovaton1
Huang, J., Henfridsson, O., Liu, M. J., & Newell, S. (2017) · MIS Quarterly · doi:10.25300/misq/2017/41.1.16 · Cited by 478 · see citing works
Transformational shifts through digital servitization
Tronvoll, B., Sklyar, A., Sörhammar, D., & Kowalkowski, C. (2020) · Industrial Marketing Management · doi:10.1016/j.indmarman.2020.02.005 · Cited by 413 · see citing works
Lehrer, C., Wieneke, A., vom Brocke, J., Jung, R., & Seidel, S. (2018) · Journal of Management Information Systems · doi:10.1080/07421222.2018.1451953 · Cited by 404 · see citing works
Recombination in the open-ended value landscape of digital innovation
Henfridsson, O., Nandhakumar, J., Scarbrough, H., & Panourgias, N. (2018) · Information and Organization · doi:10.1016/j.infoandorg.2018.03.001 · Cited by 390 · see citing works
Beirão, G., Patrício, L., & Fisk, R. P. (2017) · Journal of Service Management · doi:10.1108/josm-11-2015-0357 · Cited by 271 · see citing works
Barrett, M., Oborn, E., & Orlikowski, W. (2016) · Information Systems Research · doi:10.1287/isre.2016.0648 · Cited by 269 · see citing works
Innovating with enterprise systems and digital platforms: A contingent resource-based theory view
Sedera, D., Lokuge, S., Grover, V., Sarker, S., & Sarker, S. (2016) · Information & Management · doi:10.1016/j.im.2016.01.001 · Cited by 246 · see citing works
Sandberg, J., Holmström, J., & Lyytinen, K. (2020) · MIS Quarterly · doi:10.25300/misq/2020/14520 · Cited by 236 · see citing works
Archetypes of Service Innovation: Implications for Value Cocreation
Helkkula, A., Kowalkowski, C., & Tronvoll, B. (2018) · Journal of Service Research · doi:10.1177/1094670517746776 · Cited by 224 · see citing works
Configurations of platform organizations: Implications for complementor engagement
Saadatmand, F., Lindgren, R., & Schultze, U. (2019) · Research Policy · doi:10.1016/j.respol.2019.03.015 · Cited by 190 · see citing works
Williams, H., Lindström, A., Trischler, J., Wikström, F., & Rowe, Z. (2020) · Journal of Cleaner Production · doi:10.1016/j.jclepro.2020.121775 · Cited by 128 · see citing works
A perspective on value co-creation-oriented framework for smart product-service system
Liu, Z., Ming, X., Song, W., Qiu, S., & Qu, Y. (2018) · Procedia CIRP · doi:10.1016/j.procir.2018.04.021 · Cited by 92 · see citing works
Engert, M., Evers, J., Hein, A., & Krcmar, H. (2022) · Information Systems Frontiers · doi:10.1007/s10796-021-10236-3 · Cited by 63 · see citing works
Rezaei Aghdam, A., Watson, J., Cliff, C., & Miah, S. J. (2020) · Journal of Medical Internet Research · doi:10.2196/16324 · Cited by 57 · see citing works
Practising Value Innovation through Artificial Intelligence: The IBM Watson Case
Russo-Spena, T., Mele, C., & Marzullo, M. (2019) · Journal of Creating Value · doi:10.1177/2394964318805839 · Cited by 50 · see citing works
Autio, E., & Thomas, L. D. W. (2018) · Academy of Management Proceedings · doi:10.5465/ambpp.2018.15913abstract · Cited by 28 · see citing works
Value Co-creation in the Health Service Ecosystems: The Enabling Role of Institutional Arrangements
Ciasullo, M. V., Cosimato, S., Palumbo, R., & Storlazzi, A. (2017) · International Business Research · doi:10.5539/ibr.v10n12p222 · Cited by 24 · see citing works
Knorr, C., Erath, M., Saesen, J., Kindermann, B., & Strese, S. (2025) · Electronic Markets · doi:10.1007/s12525-025-00817-4
“Ecosystem research emphasizes that platform users’ consumption defines the value (Autio & Thomas, 2018; Henfridsson et al., 2018), suggesting that value is created “in use” rather than “in exchange” (Lusch & Nambisan, 2015).”
- Authors
- Lusch, R. F., & Nambisan, S.
- Affiliations
- University of Arizona (US)
- University of Wisconsin–Milwaukee (US)
- Venue
- MIS Quarterly
- Publisher
- MIS Quarterly
- Published
- 2015-03-01
- Volume
- 39
- Issue
- 1
- Pages
- 155-175
- ISSN
- 0276-7783 (ISSN-L)
- 2162-9730
- OpenAlex
- W271526086
- Cited by
- 1,949
- References
- 122
- Citations by year
- 2026: 159 · 2025: 140 · 2024: 168 · 2023: 168 · 2022: 229 · 2021: 243 · 2020: 233 · 2019: 175 · 2018: 178 · 2017: 137 · 2016: 80 · 2015: 36 · 2014: 2 · 2012: 1
- FWCI
- 356.54
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- MIS Quarterly (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Service and Product Innovation
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Physical Sciences › Computer Science › Information Systems › Service-Oriented Architecture and Web Services
- Keywords
- service innovation, service-dominant logic, service ecosystems, service platform, value co-creation, resource density, resource integration, digital service innovation, service exchange
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
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