Incorporating exchange governance in service-dominant logic: Lessons from transaction cost economics

In: Marketing theory, Volume 16, Issue 4, p. 553-560

Abstract

An area that receives limited attention in service-dominant (SD) logic is exchange governance. Exchange governance provisions can determine how benefits and costs are created and distributed, hence their importance. Much of the rationale for this oversight arises due to the emphasis on "value" in SD logic. With this as a starting point, this commentary article offers three sets of suggestions to integrate exchange governance into SD logic research. First, the subjective, socially embedded nature of value necessitates a greater reliance on norms-based governance. Under SD logic, there is a need to govern for a wider variety of idiosyncratic interactions throughout a service ecosystem. This has a bearing on monitoring and control activities. Second, SD logic is virtually silent on resource ownership. Understanding the property rights associated with value-creating resources is likely to determine who creates and appropriates value. Third, value-in-use suggests that value does not occur at the point of exchange exclusively. Given this, there is a need to consider value at the point of exchange as well as during the course of usage. The commentary concludes with a brief research agenda.