Title: Value attenuation and retail out-of-stocks : a service-dominant logic perspective
Authors : Ehrenthal, Joachim
Published in : International Journal of Physical Distribution and Logistics Management
Volume(Issue) : 44
Issue : 1/2
Pages : 39
Pages to: 57
Publisher / Ed. Institution : Emerald Publishing Limited
Issue Date: 2014
License (according to publishing contract) : Licence according to publishing contract
Type of review: Peer review (Publication)
Language : English
Subject (DDC) : 658.5: Production management
Abstract: Purpose The purpose of this paper is to address 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 The paper unveils out-of-stocks as emergent operant resources that alter and attenuate value creation across manufacturers, retailers, shoppers, users and their networks. The paper 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 The paper 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. The paper extends the out-of-stock literature by providing a theoretical foundation, and by showing the ecosystem effects of out-of-stocks.
Departement: School of Management and Law
Publication type: Article in scientific Journal
DOI : 10.1108/IJPDLM-02-2013-0028
ISSN: 0960-0035
URI: https://digitalcollection.zhaw.ch/handle/11475/8472
Appears in Collections:Publikationen School of Management and Law

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