Abstract

Managers of small firms who adopted Service Dominant (S-D) logic will orient and align their businesses with this strategy. S-D orientation can be beneficial for small firms because it postulate value co-creation with its customers through cooperation.For that reason, we hypothesize, that S-D orientation of small firms will positively influence its growth. The empirical investigation is based on a sample of sixty-one small construction firm in Serbia. We test our hypothesis using partial least square (PLS) regression. The results show that S-D orientation has the significant negative influence on small firm growth. For that reason, we did not find enough empirical evidence to support our hypothesis. At the end, we draw some conclusion and set implication for further research and practice.

Key words: Service dominant orientation, service dominant logic, small firm growth