Shifting Paradigm to Service-Dominant Logic via Internet-of-Things with Applications in the Elevators Industry.

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Abstract

The purpose of this paper is to investigate how latest technology Internet-of-Things (IoT) can enable/facilitate traditional manufacturing firms shifting to more service-centred business perspective. Service-dominant (S-D) logic has emerged to provide the right perspective, vocabulary and assumptions on which to build a service-centred alternative to the traditional goods-dominant (G-D) paradigm for understanding economic exchange and value creation and has been identified as an appropriate philosophical foundation for the development of service science ([Maglio, P. P., & Spohrer, J. (2008). Fundamentals of service science. Journal of the Academy of Marketing Science, 36, 18–20; Maglio, P. P., Vargo, S. L., Caswell, N., & Spohrer, J. (2009). The service system is the basic abstraction of service science. Information Systems and e-business Management, 7, 395–406]). S-D logic is in its current state of development is conceptual and few empirical studies exist to test such a logic realized in real business applications. On the other hand, IoT is a novel paradigm recently envisioned as a global network of machines and devices capable of interacting with each other to reach desired business goals in the real world. However, there is considerable research on IoT technical specifications but less elaboration on real business applications. This paper aims to describe IoT as a critical vehicle when manufacturing firms desire to transit to a more S-D and value co-creation business model, with an in-depth real business case study in the elevators industry. This paper aims: (1) to explain the distinction between G-D logic and S-D logic and its implication for manufacturing firms, (2) to examine how IoT can facilitate the transition from key S-D logic managerial implication perspective and (3) to conduct a case study in a new service offering of an elevator service business when transition to more S-D mindset by adoption of IoT, the purpose aims to examine whether the underlying technology can bring different ways of thinking when deploying a new industrial service offering.

Bibliographical metadata

Original languageEnglish
Pages (from-to)34-54
JournalJournal of Management Analytics
Volume4
Issue number1
Early online date22 Dec 2016
DOIs
Publication statusPublished - 1 Jan 2017