
doi: 10.2139/ssrn.6224028
This paper explores the application of Service-Dominant Logic (SD-Logic) to business model innovation, focusing on its potential to address challenges faced by startups in early development stages, particularly the "Valley of Death" (VoD). The VoD represents a critical phase marked by resource constraints, operational risks, and market uncertainties that often lead to failure. SD-Logic shifts the traditional goods-dominant focus to one that emphasizes service provision, value co-creation, and collaborative ecosystems as foundational principles for economic exchange.The study investigates how integrating SD-Logic into business models could foster resilience and adaptability by leveraging intangible assets such as knowledge, expertise, and stakeholder relationships. Using structured frameworks such as the Service Logic Business Model Canvas (SLBMC), this paper highlights how startups can design service-oriented business models that effectively navigate resource limitations and accelerate early-stage growth.Findings from the cross-case analysis demonstrate that startups adopting SD-Logic principles can enhance customer engagement, align their value propositions with stakeholder needs, and create stronger ecosystems of collaboration. By focusing on co-creation and leveraging institutional support, these startups can overcome traditional barriers to growth, including the inability to secure sufficient funding or establish market presence.Our study contributes to the discourse on entrepreneurship and service-oriented innovation by offering novel propositions into the design and implementation of Service-Dominant Business Models. The potential implications extend beyond startups to policymakers and practitioners, emphasizing the importance of ecosystems, resource integration, and co-creation in achieving sustainable business success. Future research directions include exploring the scalability of these models and their integration with emerging technologies such as artificial intelligence and digital platforms.
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