Institutional factors in the innovation of market ecosystems: A service-dominant logic perspective

Abstract

Ironically, although 'the market' is foundational to the marketing discipline, it has a long history of being under-studied by scholars. From a managerial perspective, markets have traditionally been conceptualized as entities that are external to the firm, relatively stable, and that can be 'measured', 'segmented', and 'targeted'. However, as disruption accelerates and new technologies exponentially grow, the managerial skills and concepts needed to cope with rapid change far exceed the conventional 'toolboxes' inherited by marketers and strategists. Primarily drawing on institutional theory within a service-dominant logic perspective, this thesis examines markets as complex systems, comprising multiple elements beyond just firms, products, customers, value chains, and industries. The thesis comprises four discrete but intellectually-related research outputs, which investigate markets and the ability of market actors to deliberately shape or innovate them. Study 1 is a conceptual essay that explores service-dominant logic as a unifying lexicon for understanding innovation at any level of aggregation, whether it be technological, business model, or market innovation. Study 2 features a machine-based lexical analysis of three contemporary academic literature streams relating to the deliberate innovating of markets to learn which most accurately reflects contemporary, complex systemic markets. Studies 3 & 4 each feature a case study. Study 3 uses 'systematic combining', the abductive approach to case study research, to examine market disruption and innovation in the market for circus in North America during the 20th century. The role of different actor groups in influencing and performing market-shaping strategies are explored. Study 4 is a qualitative inductive investigation of rapid market-shaping undertaken by a small collective of collaborating competitors in the wine market. The thesis concludes there is a dynamic relationship between the practices and performances enacted by market actors and the function and structuration of markets. Hence, markets are cocreated phenomena that may be deliberately shaped, especially through cooperation and collaboration. However, the efficacy of market-shaping is dependent upon the types of activities undertaken and the degree of collaboration, which ultimately affects how much market actors can influence others' expectations, belief systems, assumptions, and practices.