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To outcomes and beyond: Discursively managing legitimacy struggles in outcome business models
University of Vaasa, School of Management, PO Box 700, FI-65101 Vaasa, Finland.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering. University of Vaasa, School of Management, PO Box 700, FI-65101 Vaasa, Finland; University of South-Eastern Norway, USN Business School, Norway.ORCID iD: 0000-0003-2094-7974
2020 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062, Vol. 91, p. 196-208Article in journal (Refereed) Published
Abstract [en]

Outcome business models (OBMs) guarantee and deliver economic and operational results for customers. The risk transfer from customer to provider enables the emergence of new value drivers, such as mutual learning. However, if the outcome-based service (OBS) customer learns the operational capabilities, based on which they are willing to rely on the OBS provider to achieve outcomes, how then does an OBS provider justify its role as a legitimate partner in the future? To answer this question, we conducted an in-depth single-case study and performed a critical discourse analysis with an OBS provider delivering outcomes. We identify causes for legitimacy struggles (lack of intentional and competence trust) in an OBM and subsequent discursive legitimation strategies used to defend legitimacy: 1) trustification, 2) rationalization, 3) authorization, and 4) normalization. For managers, we elaborate certain OBM problematics causing legitimacy struggles and offer discursive resources that can be mobilized to recreate legitimacy.

Place, publisher, year, edition, pages
Elsevier, 2020. Vol. 91, p. 196-208
Keywords [en]
Discursive legitimation strategies, Legitimacy struggles, Trust in interorganizational network, Outcome business models, Product-service systems (PSS), Servitization
National Category
Business Administration
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-80877DOI: 10.1016/j.indmarman.2020.08.023ISI: 000598667500019Scopus ID: 2-s2.0-85091239587OAI: oai:DiVA.org:ltu-80877DiVA, id: diva2:1469541
Note

Validerad;2020;Nivå 2;2020-09-22 (alebob)

Available from: 2020-09-22 Created: 2020-09-22 Last updated: 2024-12-03Bibliographically approved

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Kohtamäki, Marko

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