Value Co Creation And Service Dominant Logic

1715 Words Aug 17th, 2015 7 Pages
2.2.4 Value-in-Use, Value Co-Creation and Service-Dominant Logic
As was stated above, under the Good-Dominant Logic, products are located at a leading point and services are just appendages. However, from middle of the 1950s, those so called “service department” or “service industry” which does not belong to neither manufacturing nor agriculture has provided more jobs than other departments. Now, services department has occupied 70%-80% GDP and employment figure in developed countries, it is far ahead of manufacturing department with about 25% and agriculture department’s 5% (Tien and Berg, 2006). What is more, the economic activities transforming trend from products to services is more and more obviously among developing countries (such as China and India) as well. Vargo and Lush (2004) considered that was mainly caused by the internal defect of Good-Dominant Logic. The Good-Dominant Logic is primarily base on Adam Smith’s limit work for increasing national wealth, so it prefer to focus on those exchangeable and tangible products instead of services. However, although there are several defects in G-D Logic, it suited the industrial revolution times and social background of that period well. In that period, because of the transportation barriers and underdeveloped communication technologies, exporting tangible products was the most effective way to gather wealth. But in the current situation with information revolution and economic globalisation, tangible products’ impacts…
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