Service-dominant innovation as a development driver in manufacturing: case Kemppi

• Published in: ISPIM Innovation Symposium p. 1
• Main Author: Korhonen, Heidi M E
• Format: Conference Proceeding
• Language: English
• Published: Manchester The International Society for Professional Innovation Management (ISPIM) 01.12.2013

The service-dominant logic suggests that innovation efforts should be focused on serving -- that is the application of one's competences and resources for the benefit of another. This paper studies service-dominant innovation and its use for developing manufacturing business in the Asian century. The authors use the service-dominant logic to derive a framework of service-dominant innovation as practice and as an outcome. They then use the case study of an arc welding equipment manufacturer to make the theoretical framework more approachable for practitioners. They characterize service-dominant innovation practice as: entrepreneurial search for new beneficial combinations of resource application; making value propositions based on beneficiaries' experiences; assisting customers and stakeholders in their own value creation; and co-constructing complex and dynamic value systems. They further characterize service-dominant innovation outcomes as new forms of organizing resources for value co-creation. They also discuss implications on developing manufacturing and on competition in the Asian century.