The 2009 Naples Forum on Service Service Dominant Logic, Service Science and Network Theories

1. The 2009 Naples Forum on Service Service Dominant Logic, Service Science and Network Theories Service Dominant Logic and Service Science: a contribute deriving from network theories Prof. Sergio Barile University of Roma “La Sapienza” sergio.barile@uniroma1.it Prof. Francesco Polese University of Cassino polese@unicas.it 1

2. Work Purpose This paper has these purposes: To present the viable system approach (vSa) in an international discussion, since it is a theory until now confined in last decade within Italian national research context. To verify the compatibility between the vSa and the emerging theories on service, and specifically S-D logic and Service Science. 2

3. …about the vSa The Viable System Approach (vSa) is a systemic theory grounded on interdisciplinary basis, an interpretation key and a methodological approach useful to address management theories and business administration. 3

4. vSa – Firm concept It is characterized by a life cycle similar to that of living organisms, which pursues own survival in a selective environment (Hannan & Freeman, 1977) The enterprise is a system with its purpose and it aims to survival (Beer, 1972) Enterprise as an open system, immersed in the environment, with which it interacts exchanging information, matter and energy von Bertalanffy (1956) It is a complex system of interacting elements rationally connected (Parsons, 1965; von Bertalanffy, 1968; Luhmann, 1990) The enterpriseisan open system, aimed, organic, autopoiethic, cognitive, cybernetic From cybernetics it comes the idea to interpret the enterprise as a system capable of homeostaticself control (Beer, 1972) From biology: the environment is complex (full of knowledge, resources and activities), in which the enterprise is encouraged to selective mechanisms to increase its complexity and align it in an ordered and balanced structure (Maturana & Varela, 1980; Luhmann, 1990) The cognitive approach suggests that the main source of value creation lies in knowledge and stresses the importance of learning mechanisms (Clark, 1994) 4 4 4

5. The accomplishment of a viable behavior depends on the characteristics of the interaction between components/systems. External resources access Resources valorization Harmonic behaviour

6. Overlapping research domain Service systems • Service Science resources adaptation Viable systems 3. Viable system approach ? value competitiveness 2. Service Dominant logic interactions Service complexity 6

7. several overlapping issues… Value - Competitiveness Relationships Resources Complexity Interactions Adaptations 7

8. Viability of the system seems in line with the long lasting win-win relation of System increasing, as well as successful value experiences within service logic. 8

9. Relationships according to the viable system approach are crucial since they should render a wise valorisation of internal resources (sub-systems) and a satisfactory exchange of external ones (possessed by over-systems). 9

10. Resources are non proprietary, but disposable upon consonant and resonant behaviour (this imply an active role of government): since viable systems need resources to perform sustainable behaviour, critical resources are needed, and therefore determine the external systems’ importance and relevance for viability. 10

11. S-D logic starting from equilibrium systems in good dominant, going to dynamic systems in the “transition” logics, defines competitive business as “complex adaptive systems”. From structure to systems. 11

12. …non concliuding remarks… We found there were strong compatibilities between service theories and the Viable System Approach. We believe that service theories could benefit from vSa proposals; in fact a) Service Science deals with service systems. b) Service dominant logic has overcome marketing and now is directing towards a service culture affecting many disciplines, such as management, strategy, etc. c) The vSa simply is broader than these, since it is an interpretation key of complex phenomena such as competitive arena, businesses, networks, communities, consumers, individuals, etc. 12