The evolution of networks and interaction in the co-creation of value: a case study of the development of a city museum

Anne Marie Doherty, Gbolahan Faleye

Research output: Contribution to conferencePaper

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Vargo and Lusch (2004) proposed that marketing is moving to a new dominant logic where
service is exchanged for service. Central to their proposal were eight foundational premises
(Vargo and Lusch, 2004), subsequently extended to ten (Vargo and Lusch, 2008a). Key
amongst them are: service is deemed to be the fundamental basis of exchange (FP1); operant
resources are the fundamental source of competitive advantage (FP4); the customer is always
a co-creator of value (FP6); the enterprise can only offer value propositions, it cannot deliver
value (FP7); value creation occurs in networks through actors who are resource integrators
(FP9); and value itself is ‘idiosyncratic, experiential, contextual and meaning-laden’ (FP10)
(Vargo and Lusch, 2008a, p.375).
Much discussion on S-D logic has focused on developing this theoretical context (see for
example: Lusch and Vargo, 2006, 2009; Vargo and Lusch, 2008b, 2008c; Gummesson,
Lusch, Vargo, 2010; Brodie et al., 2011). Alongside this, the debate has developed through
studies which explore how the tenets of S-D logic operate in practical contexts such as
financial services (Auh et al., 2007), art experiences (White, Hede and Rentschler, 2009),
opera (Lund, 2010), the travel industry (Fyrberg and Juriado, 2009), electronic services
(Blazevic and Lievens, 2008) and the Harry Potter phenomenon (Brown and Patterson, 2009)
amongst others. Central to much of this work is the effort to understand how value is cocreated
within varying contexts. Of particular interest to the current research is the work of
Fryberg and Juriado (2009) who highlight the importance of networks in the co-creation of
value, paying particular attention to the importance of interaction between network actors.
Further, defining value and value propositions has received increasing attention (Gronroos,
2008; Kowalkowski, 2011).
Through a case study of the Cardiff Story, a new museum for the people of Cardiff, this paper
builds on previous work on S-D logic by exploring how networks and interaction evolve over
time and the role they play in the evolving nature of value co-creation. The unique site of the
work, the development from inception of a city museum, allows us to explore S-D logic in
the public sector while taking into consideration the specific nature of arts and heritage in that
The paper begins by reviewing pertinent S-D logic constructs to provide context for the
current work. The methods section details the research position adopted before providing a
justification for the single case study nature of this work. Context for the Cardiff Story is
provided before the data collection methods are outlined. Findings are subsequently discussed
before a conclusion is offered and areas for future research outlined.
Original languageEnglish
Number of pages13
Publication statusPublished - Jul 2012
EventAcademy of Marketing Conference: Marketing: catching the technology wave - Southampton, United Kingdom
Duration: 2 Jul 20125 Jul 2012


ConferenceAcademy of Marketing Conference: Marketing: catching the technology wave
CountryUnited Kingdom


  • museum
  • co-creation
  • networks
  • ineraction

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