servicedominant

Service-dominant logic (SDL) is a framework for understanding economic exchange that posits service as the foundational basis of all value creation. It contrasts with traditional goods-dominant logic by arguing that goods are merely vehicles for provisioning service rather than ends in themselves. SDL was introduced by Stephen Vargo and Robert Lusch in 2004 and has since evolved through refinements and applications across marketing, management, and information systems.

Core tenets include: service is the fundamental basis of exchange; goods, commodities, and tangible products function as distribution mechanisms for service provision; value is co-created by multiple actors through resource integration within a service ecosystem; the customer is always a co-creator of value; value is realized in use and context (value-in-use) rather than being embedded in outputs; operant resources (knowledge, skills, information) are the primary inputs driving value, while operand resources (tangible assets) enable application.

SDL emphasizes networked collaboration, continuous service exchange, and the idea that the market is a set of service systems rather than isolated producers and consumers. It has influenced approaches to service design, customer experience, platform economics, and sustainability. Critics note that SDL can be abstract and difficult to operationalize, but it remains a widely cited lens for understanding modern economies driven by service and knowledge. Related concepts include value co-creation, resource integration, and service ecosystems.