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 manufacturerdealer-user triad. A qualitative empirical inquiry examines a ten-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.Keywords: value proposition; network ties; relationship development; service systems; case study application
Application abstractDeveloping a value proposition is a critical strategic issue for marketing managers. Even as competitive advantage increasingly appears in networked business models though, the concept of the value proposition has yet to be extended to multilateral settings. For example, studies of service-led growth in industrial contexts often focus on the manufacturer and customer but omit service partners as critical actors. The authors therefore suggest a triadic value proposition and analyze how such value propositions might evolve over time in an industrial context, a setting in which service partners' performance often is a foundation for manufacturer success. Substantial adjustments to the arrangement between two parties likely influence what can be proposed to the third, which makes collaboration with all parties necessary to initiate any discontinuous change at the network level. To make this concept more actionable, the authors also illustrate how managers might approach the task of crafting triadic value propositions. The insight for management is straightforward: By adopting a triadic perspective while developing the value proposition, companies can increase the viability of their service system and provide a more compelling market offering.3