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Value Attenuation and Retail Out-of-Stocks : A Service-Dominant Logic Perspective
Journal
International Journal of Physical Distribution & Logistics Management
ISSN
0960-0035
Type
journal article
Date Issued
2014-02-07
Author(s)
Abstract
Purpose - Addresses the effects of retail out-of-stocks from a Service-Dominant (S-D) logic view.
Design/methodology/approach - Conceptual, combining classic S-D logic research with recent research of S-D logic in supply chains, and applying this to out-of-stocks in a retail setting of fast-moving consumer goods.
Findings - This article unveils out-of-stocks as emergent operant resources that alter and attenuate value creation across manufacturers, retailers, shoppers, users and their networks. It develops a model of value co-creation where manufacturer supply and shopper/user demand meet in the retailer's realm. Differentiating between shopper and user in a sequential model of value creation, it identifies the shopper as an active entity whose response to out-of-stocks redistributes value within the retail service ecosystem. An additional model is developed that illustrates the novel costs of an out-of-stock as uncovered by the S-D logic perspective, allowing retailers and manufacturers to align their interests in improving on-shelf availability.
Research limitations/implications - Moving distribution thought and management towards a goal of service provision, this article suggests three logistics research possibilities: retailer-manufacturer misalignment, spatio-temporal supply-demand mismatch, and shopper-user interaction.
Practical implications - This article shows how the S-D perspective can bring previously misaligned incentives of supply chain actors into alignment. Previous goods-dominant research showed little common ground for manufacturers and retailers to jointly improve on-shelf availability. The S-D logic view demonstrates compelling rationale for both parties' involvement.
Originality/value - Extends S-D logic literature by considering value attenuation through failures in physical distribution and logistics management, adding that non-availability causes operand resources to become operant and attenuate/redistribute value. Extends the out-of-stock literature by providing a theoretical foundation, and by showing the ecosystem effects of out-of-stocks.
Design/methodology/approach - Conceptual, combining classic S-D logic research with recent research of S-D logic in supply chains, and applying this to out-of-stocks in a retail setting of fast-moving consumer goods.
Findings - This article unveils out-of-stocks as emergent operant resources that alter and attenuate value creation across manufacturers, retailers, shoppers, users and their networks. It develops a model of value co-creation where manufacturer supply and shopper/user demand meet in the retailer's realm. Differentiating between shopper and user in a sequential model of value creation, it identifies the shopper as an active entity whose response to out-of-stocks redistributes value within the retail service ecosystem. An additional model is developed that illustrates the novel costs of an out-of-stock as uncovered by the S-D logic perspective, allowing retailers and manufacturers to align their interests in improving on-shelf availability.
Research limitations/implications - Moving distribution thought and management towards a goal of service provision, this article suggests three logistics research possibilities: retailer-manufacturer misalignment, spatio-temporal supply-demand mismatch, and shopper-user interaction.
Practical implications - This article shows how the S-D perspective can bring previously misaligned incentives of supply chain actors into alignment. Previous goods-dominant research showed little common ground for manufacturers and retailers to jointly improve on-shelf availability. The S-D logic view demonstrates compelling rationale for both parties' involvement.
Originality/value - Extends S-D logic literature by considering value attenuation through failures in physical distribution and logistics management, adding that non-availability causes operand resources to become operant and attenuate/redistribute value. Extends the out-of-stock literature by providing a theoretical foundation, and by showing the ecosystem effects of out-of-stocks.
Project(s)
Language
English
Keywords
service-dominant logic
on-shelf availability
value attenuation
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Emerald Group Publishing Limited
Publisher place
Bingley UK
Volume
44
Number
1/2
Start page
39
End page
57
Pages
19
Subject(s)
Division(s)
Eprints ID
173054