Triadic value propositions: When it takes more than two to tango

Abstract

Value propositions are reciprocal resource-integration promises and value alignment mechanisms operating to and from actors seeking an equitable exchange. In a business triad, any change in the relationship between two actors also affects relationships with the third actor, influencing resource integration and value creation at the value constellation level. This study of the development of a triadic value proposition analyzes how the discontinuous effects of a new service initiative alter the relationships among actors in a manufacturer-dealer-user triad. A qualitative empirical inquiry examines a 10-year process, in which a leading industry incumbent enters the service business by crafting a triadic value proposition. As the value proposition evolves over time, the network ties - and thus the interdependence among manufacturer, dealer, and user - strengthen. The findings offer firms a better understanding of how to involve and collaborate with key actors to initiate discontinuous changes at the firm and network levels. These insights are particularly timely in light of the difficulties that product firms face when intermediaries are decisive for the success of their service-led growth initiatives.