On dominant logic: review and synthesis

Building on the idea of managerial relatedness among businesses, the concept of “Dominant Logic” (DL) was developed to provide insights into what the determinants for successful diversification and organizational adaptation may be. Since Prahalad and Bettis’ seminal article (Strateg Manag J 7(6):485–450, 1986), management scholars have drawn on the concept of DL for almost 25 years and applied it to various strategic management contexts. However, the lack of a systematic review that integrates the past decades’ fragmented research on DL and resolves its conceptual inconsistencies hinders the purposeful application of the concept and its further development. Hence, we seek to contribute to the literature by addressing this substantial gap. Developing an integrated framework, we provide an overview of DL research concentrating on (1) the antecedents of DL formation and adaptation, (2) the DL commonality-performance linkage, and (3) the dynamics of DL. By introducing the distinction between absolute and relative dominance, we offer a more precise definition of DL that clarifies and theoretically distinguishes the concept. We conclude by highlighting salient research gaps and identifying promising areas for future research efforts.