New model expands on existing market logic to include competition and cooperation

A new model has been published in the Journal of Business & Industrial Marketing that conceptually reinforces a central principle of the modern economy. In the publication “Reframing service-dominant logic: the interplay of cooperation and competition in market ecosystems,” Prof. Dr. Renata Klafke, Prof. Dr. Nicholas Grigoriou, and Prof. Dr. Marco Richter, who is affiliated with the Dresden University of Applied Sciences (FHD), demonstrate that companies not only cooperate but also compete with one another simultaneously—and that this very tension is crucial for economic success.

Extension of market logic

Previous models such as Service-Dominant Logic (SDL) primarily emphasize collaboration between companies, customers, and partners, assuming that value is not created solely through products but through shared use and cooperation.

New model: balance between opposites

To complement this perspective, the authors show that in practice companies often manage cooperation and competition simultaneously. As a solution, they propose the so-called Service Duality Framework (SDF). This model describes value creation as a dynamic interplay of two forces:

• Cooperation
• Competition

The central idea: companies must manage both in parallel. Success does not arise from one-sided collaboration, but from a balanced relationship between the two.

Key concepts of the SDF

The SDF introduces three key concepts:

• Cooperative advantage: benefits gained through collaboration
• Competitive advantage: differentiation from others
• Dynamic equilibrium: balance between both forces

Companies as partners and rivals at the same time

The principle of simultaneous cooperation and competition becomes particularly clear in the following practical example.

At Uber, drivers (subcontractors) and the platform work closely together because they depend on one another: drivers use the platform to reach passengers, while Uber relies on drivers to provide its service. At the same time, however, there is a tension, as drivers aim for the highest possible pay, while Uber seeks to maximize its own profit. This interplay of cooperation and competing interests illustrates the dynamic equilibrium within the Service Duality Framework.

“Ambidextrous” management as the key

The study highlights the importance of organizational ambidexterity—the ability of companies to act cooperatively while also competing effectively. The new model shows how companies can create value through this “dual-handed” approach.

With this approach, the authors extend existing theory: value is no longer created solely through collaboration, but through the simultaneous tension between cooperation and competition.

Link to the journal