In the Viable Systems Approach (VSA), Service-Dominant Logic (S-D Logic) is a complementary conceptual framework that emphasizes the relational and systemic nature of value creation. S-D Logic shifts the focus from traditional goods-centered views of exchange to a service-oriented perspective, where value emerges through interactions and co-creation among actors within a network.
In the VSA context, S-D Logic is particularly relevant because it aligns with the systemic principles of relationships, co-creation, and dynamic adaptation.
From a VSA perspective, S-D Logic reinforces the idea that systems (organizations, individuals, or networks) are inherently relational and open, engaging in continuous exchanges with other systems in their environment. These exchanges are not merely transactional but involve the integration and application of resources, particularly knowledge and skills, to co-create value. This emphasis on co-creation mirrors the VSA's focus on the importance of relationships and systemic interdependencies.
The concept of value co-creation is central to both S-D Logic and the VSA. In S-D Logic, value is not embedded in products or services but is realized through their use (value-in-use) within a specific context. Similarly, in the VSA, value emerges from the interactions and relationships among system components and their broader environment. For example, a customer does not derive value simply from purchasing a product; the value is co-created through the experience of using the product in a way that meets their specific needs and goals.
S-D Logic’s emphasis on resource integration resonates with the VSA’s principle of systemic alignment. In S-D Logic, all actors in a system contribute resources—whether tangible (e.g., raw materials) or intangible (e.g., knowledge, skills, relationships)—to the co-creation process. In the VSA, these resources are managed and integrated to ensure systemic coherence and alignment with the environment. This integration allows systems to adapt and evolve, enhancing their long-term viability.
The networked nature of interactions in S-D Logic aligns seamlessly with the VSA’s focus on the recursive and relational structure of systems. S-D Logic views markets as ecosystems of interconnected actors (providers, customers, partners, regulators, etc.) who interact and co-create value. In the VSA, this networked perspective is extended to the idea of viable systems existing within larger systems, each contributing to and depending on the others. For instance, a service provider operates as a viable system within a market ecosystem, where its relationships with customers, suppliers, and competitors determine its ability to create and sustain value.
S-D Logic’s principle of service as the fundamental basis of exchange also complements the VSA’s systemic view. In S-D Logic, service is defined as the application of resources for the benefit of another actor. This perspective broadens the understanding of exchange beyond goods and services to include the transfer and integration of knowledge, expertise, and value propositions. The VSA extends this by emphasizing that these exchanges occur within a broader system of relationships, requiring alignment and coherence to achieve viability.
Both frameworks emphasize the importance of context in value creation. S-D Logic highlights that value is always contextual and subjective, dependent on the unique needs and circumstances of the actors involved. In the VSA, context is a critical consideration for ensuring systemic alignment. A system’s ability to create value depends on its capacity to adapt its resources and processes to the specific demands of its environment, which is dynamic and complex.
Adaptability and learning are also shared themes between S-D Logic and the VSA. In S-D Logic, organizations must continuously engage with stakeholders, learn from their interactions, and adapt their value propositions to remain relevant. Similarly, in the VSA, systems are seen as adaptive entities that monitor feedback from their environment and evolve to maintain viability.
The integration of S-D Logic and the VSA provides a robust framework for understanding and managing value creation in complex systems. While S-D Logic focuses on the processes of co-creation and resource integration, the VSA provides the systemic structure and governance principles needed to align these processes with the broader system’s goals and context. Together, they offer a holistic perspective on managing relationships, resources, and interactions in dynamic environments.
For example, in a service-based organization, S-D Logic emphasizes designing value propositions that facilitate co-creation with customers and partners. The VSA complements this by ensuring that the organization’s internal structures, processes, and governance mechanisms are aligned to support these co-creation activities. The VSA also extends the analysis to include how the organization interacts with and adapts to its broader environment, ensuring long-term sustainability.
In summary, Service-Dominant Logic in the VSA framework highlights the relational and systemic nature of value creation. It shifts the focus from transactions to interactions, from delivering value to co-creating value, and from isolated entities to interconnected systems. By integrating S-D Logic with the principles of the VSA, organizations can better understand and manage the complexities of value creation in dynamic and interconnected ecosystems, enhancing their adaptability, resilience, and long-term viability.
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