Business Interaction in S-D Logic

Purpose – This paper is aimed at integrating literature on S-D L with the interaction approach by IMP, in order to elaborate a model for representing business interaction in S-D Logic. A particular attention is devoted to the interactive and networked nature of value creation (Gummesson, 2006; Vargo & Lusch, 2008; Cova & Salle, 2008) and to the pivotal role of interactions in reciprocal value-creating processes (Gronroos, 2007; Gronroos & Ravald, 2009). Methodology/approach – Empirically we investigate the Edenred case, the global leader in the meal vouchers service. Edenred expertise in delivering end-to-end solutions for rewards, compensations, incentives, assistance and loyalty programs for employers and citizens is widely recognized worldwide. Through a longitudinal study of Edenred, we focus how actors, activities and resources evolved through the years and identify the main implications in terms of business interaction features according to a service-centered logic. Findings – Results of our study shows that combining recent advancements in the service-centered logic of marketing with the interaction model developed in the industrial network framework (Hakansson et al., 2009), provide a further understanding of interaction processes in service networks. In particular, the case study shows that when the model is applied to a service network context, new dimensions emerge, offering further specifications of the ones presented in the IMP interaction model . Research implications – The study both contributes to literature on service networks (Ford et al., 2009) and on business interaction according to the industrial network approach, especially considering that the interaction model has been mainly derived from observations of relationships between manufacturing firms. Practical implications – In-depth understanding of the features of interaction processes in time and space could support managers in identifying the critical areas for value creation, and how these areas are interrelated to each other. This knowledge, in turn, could reduce helps at exploiting synergies and interdependences between the different elements that compose interaction processes. Moreover, realizing how interactions occur could also help managers in individuating potential areas of innovation and the extended effects that can be generated by investing in them. Originality/value – Important changes in the market require in-depth understanding of the process of interaction in service networks even more stringent. Therefore the integration of two streams of research, S-D Logic and IMP approach, on a specific model (the business interaction model) represents the original contribution of the paper.