Badi, SM; Razmdoost, K; Murtagh, N; (2017) When Service Ecosystems Collapse: Understanding the Demise of the UK Green Deal. In: Gummesson, E and Mele, C and Polese, F, (eds.) Service Dominant Logic, Network and Systems Theory and Service Science: Integrating three Perspectives for a New Service Agenda. Naples Forum on Service: Sorrento, Italy.

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Abstract

The concept of the service ecosystem is increasingly being drawn upon to explain the drivers, occurrences and consequences of socio-economic actors’ service exchanges towards value creation. Existing research has proposed how service ecosystems may successfully transform, but no work to our knowledge has examined how transformations may fail. To address this gap, this paper examines how a service ecosystem fails to transform and survive by developing a conceptual framework based on the concept of entropy from systems theory. A series of propositions are formulated, linking inadequate management of entropy to a service ecosystem’s subsequent state of disorder and collapse. The conceptual framework is illustrated through a unique case: the introduction and demise of the Green Deal in the UK. We propose that entropy is intrinsically embedded in systems’ trajectories and can be understood as the tendency towards loss of value co-creation. The viability of a service ecosystem depends on its capacity to reduce entropy, which requires continuous action to import resources from the environment, achieve heteropathic resource integration and/or re-institutionalise. Where systemic actors and networks of actors within the system fail to manage increasing entropy, resources from the system are dissipated back to the environment and institutional arrangements collapse.

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