Purpose – During the past decades, implementing reforms becomes a popular topic for most manufacturers. With the aim to cope with the environment changes, there are urgent needs for these manufacturing companies to carry on reforms on the existing businesses. At the same time, value creation under a new service dominant logic for manufacturers are cited by many scholars. The aim of this paper is to analyze the new dominant logic, with the comparison of traditional goods dominant logic, recognize the advanced value creation model. To go a step further, this paper also discusses about the way of implementing reforms and new business logic for manufacturers.
Methodology – This paper mainly takes the methodology of literature review. The literatures reviewed here include academic papers, books, and website information. The main field of literatures include: service definition and service characteristics; goods-dominant logic versus service dominant logic; and value creation (co-creation). On the other hand, some small case studies can also be found in this paper.
Findings – After the comparing between goods dominant logic and service dominant logic, this paper suggests the service-dominant logic as a preferred business logic. Because it provides a more interactive way of consumption, presents a value-in-use view rather than value-in-exchange, and requires manufacturers playing a role of assisting customers in value creating process. For those manufacturers wish to implement the service dominant logic, this paper suggests them to take innovations on their business, which including the innovations on products/services, business processes, and business models.
Research limitations/implications – As a relative new field of study, the research is mostly taken by literature review. However, the research on the implementing of new business logic and reforms requires more voice from the real industry.
Practical implications – Manufacturers may position themselves to new roles by involving in the customers’ value creating process. Taking innovations from a integrated view may help manufacturers to achieve the higher value under service dominant logic.
Originality/value – This paper concluded the ongoing service dominant logic development, after which, offers a discussion on the implementing of which for the manufacturing companies.