To Örebro University

As manufacturers initiate service-led growth, the interdependence between manufacturer, intermediary, and user increases. In this study, we conceptualize a triadic value proposition and analyze how the structural, economic, and social dimensions of the value proposition between manufacturer, dealer, and user change when the manufacturer enters the service market. The research is based on a five-year study of a multinational industry incumbent entering the service business by offering a new service for professional users (B2B). Primary data comes from interviews with respondents from the manufacturer, dealers, and end-users in the Netherlands, Sweden, and the US. What makes the context and time particularly interesting to study from a value proposition perspective is the fact that (1) the dealers sell multiple brands and have no specific loyalty towards a particular manufacturer, and (2) entering the service market implied a redefinition of the existing relationship and value proposition characteristics in order to succeed. Results show the dynamics of the triadic value proposition throughout the entire service development process, from idea and concept to launch and sales. Modifications and adaptations take place due to factors such as emergent opportunities, unexpected limitations, and internal strategic re-prioritizations, as well as inputs from dealers and customers along the way. By analyzing how the proposition evolves over time, we can better understand how to involve and collaborate with key actors in order to initiate a disruptive change on a firm and network level. This is particularly timely given the major difficulties related to service infusion when intermediaries play a decisive role for the success.