Innovation in retail and the service-dominant logic: case studies in Brazilian retail networks

Abstract

This paper seeks to develop an empirical validation of the service product formulation developed by Gallouj (2002) and its relationship with the retail sector as a service based on service dominant logic (VARGO; LUSCH, 2004). From the analysis of two case studies of major Brazilian retailers we concluded that innovation pursued by these retailers was produced by internal initiatives designed to generate sales growth and increase interaction with customers. Among the innovations investigated, only two were imitated by others, and even after the models had been replicated the company continued to maintain its competitive advantage generated through innovation.