Foundational Premises (FP) of Service-Dominant Logic

Vargo, S. L. and Akaka, M. A., "Service-Dominant Logic as a Foundation for Service Science: Clarifications," Service Science 1(1), Table 1 pp. 35, 32-41, 2009.

Foundational Premise Explanation & Comment

FP1 Service is the fundamental basis of exchange. The application of operant resources (knowledge and skills), "service," as defined in S-D logic, is the basis for all exchange. Service is exchanged for service.

FP2 Indirect exchange masks the fundamental basis of exchange. Because service is provided through complex combinations of goods, money, and institutions, the service basis of exchange is not always apparent.

FP3 Goods are a distribution mechanism for service provision. Goods (both durable and non-durable) derive their value through use - the service they provide.

FP4 Operant resources are the fundamental source of competitive advantage. The comparative ability to cause desired change drives competition.

FP5 All economies are service economies. Service (singular) is only now becoming more apparent with increased specialization and outsourcing.

FP6 The customer is always a cocreator of value. Implies value creation is interactional.

FP7 The enterprise cannot deliver value, but only offer value propositions. Enterprises can offer their applied resources for value creation and collaboratively (interactively) create value following acceptance of value propositions, but can not create and/or deliver value independently.

FP8 A service-centered view is inherently customer oriented and relational Because service is defined in terms of customer-determined benefit and co-created it is inherently customer oriented and relational.

FP9 All social and economic actors are resource integrators. Implies the context of value creation is networks of networks (resource integrators).

FP10 Value is always uniquely and phenomenologically determined by the beneficiary Value is idiosyncratic, experiential, contextual, and meaning laden.

	Foundational Premise	Explanation & Comment
FP1	Service is the fundamental basis of exchange.	The application of operant resources (knowledge and skills), "service," as defined in S-D logic, is the basis for all exchange. Service is exchanged for service.
FP2	Indirect exchange masks the fundamental basis of exchange.	Because service is provided through complex combinations of goods, money, and institutions, the service basis of exchange is not always apparent.
FP3	Goods are a distribution mechanism for service provision.	Goods (both durable and non-durable) derive their value through use - the service they provide.
FP4	Operant resources are the fundamental source of competitive advantage.	The comparative ability to cause desired change drives competition.
FP5	All economies are service economies.	Service (singular) is only now becoming more apparent with increased specialization and outsourcing.
FP6	The customer is always a cocreator of value.	Implies value creation is interactional.
FP7	The enterprise cannot deliver value, but only offer value propositions.	Enterprises can offer their applied resources for value creation and collaboratively (interactively) create value following acceptance of value propositions, but can not create and/or deliver value independently.
FP8	A service-centered view is inherently customer oriented and relational	Because service is defined in terms of customer-determined benefit and co-created it is inherently customer oriented and relational.
FP9	All social and economic actors are resource integrators.	Implies the context of value creation is networks of networks (resource integrators).
FP10	Value is always uniquely and phenomenologically determined by the beneficiary	Value is idiosyncratic, experiential, contextual, and meaning laden.