According to service-dominant logic (S-D logic), all providers are service providers, and service is the fundamental basis of exchange. Value is co-created with customers and assessed on the basis of value-in-context. However, the extensive literature on S-D logic could benefit from paying explicit attention to the fact that both service exchange and value co-creation are influenced by social forces. The aim of this study is to expand understanding of service exchange and value co-creation by complementing these central aspects of S-D logic with key concepts from social construction theories (social structures, social systems, roles, positions, interactions, and reproduction of social structures). The study develops and describes a new framework for understanding how the concepts of service exchange and value co-creation are affected by recognizing that they are embedded in social systems. The study contends that value should be understood as value-in-social-context and that value is a social construction. Value co-creation is shaped by social forces, is reproduced in social structures, and can be asymmetric for the actors involved. Service exchanges are dynamic, and actors learn and change their roles within dynamic service systems.

While service design has been highlighted as a promising approach for driving innovation, there are often struggles in realizing lasting change in practice. The issues with long-term implementation reveal a reductionist view of service design that ignores the institutional arrangements and other interdependencies that influence design efforts within multi-actor service systems. The purpose of this article is to build a systemic understanding of service design to inform actors’ efforts aimed at intentional, long-term change in service systems. To achieve this aim, we inform the conceptual building blocks of service design by applying service-dominant logic’s service ecosystems perspective. Through this process, we develop four core propositions and a multilevel process model of service ecosystem design. The conceptualization of service ecosystem design advances service design theory by illuminating previously taken for granted aspects; explaining how intentional, long-term change emerges; and expanding the scope of service design beyond projects. Furthermore, this research offers a foundation for future research on service design that involves extending the systemic conceptualization of service design, conducting more holistic empirical investigations, and developing practical methods and approaches for the embedded, collective processes of designing.

Resource integration has become an important concept in marketing literature. However, little is known about the systemic nature of resource integration and the ways the activities of resource integrators are coordinated and adjusted to each other. Therefore, we claim that institutions are the coordinating link that have impact on value cocreation efforts and are the reference base for customers’ value assessment. When conceptualizing the systemic nature of resource integration, we include the regulative, normative, and cognitive institutions and institutional logics. This article provides a framework and a structure for identifying and analyzing the influence of institutional logics on resource integration in service systems.

As digitalisation increasingly encompasses entire service ecosystems, it modifies resource integration patterns that connect ecosystem actors through strong and weak ties. To clarify how technological development contributes to this change, and how resource integration transforms the service ecosystem, this qualitative case study explores the digitalisation strategy of a market-leading systems integrator in the maritime industry. Based on 40 depth interviews with managers, the findings show how technology increasingly serves as a key operant resource in the transformation of resource integration patterns. The study contributes to ecosystem dynamics research by identifying major differences between the pre-digitalised and digitalised states of a service ecosystem, and demonstrates the dual role of technology in both increasing pattern complexity and facilitating coordination of that complexity.

Purpose: The purpose of this paper is to analyze how service design practices reshape mental models to enable innovation. Mental models are actors’ assumptions and beliefs that guide their behavior and interpretation of their environment. Design/methodology/approach: This paper offers a conceptual framework for innovation in service ecosystems through service design that connects the macro view of innovation as changing institutional arrangements with the micro view of innovation as reshaping actors’ mental models. Furthermore, through an 18-month ethnographic study of service design practices in the context of healthcare, how service design practices reshape mental models to enable innovation is investigated. Findings: This research highlights that service design reshapes mental models through the practices of sensing surprise, perceiving multiples and embodying alternatives. This paper delineates the enabling conditions for these practices to occur, such as coaching, diverse participation and supportive physical materials. Research limitations/implications: This study brings forward the underappreciated role of actors’ mental models in innovation. It highlights that innovation in service ecosystems is not simply about actors making changes to their external context but also actors shifting their own assumptions and beliefs. Practical implications: This paper offers insights for service managers and service designers interested in supporting innovation on how to catalyze shifts in actors’ mental models by creating the conditions for specific service design practices. Originality/value: This paper is the first to shed light on the central role of actors’ mental models in innovation and identify the service design practices that reshape mental models.