Abstract: New labels with symbolic value may constitute a strategic resource for firms in established market categories, but these labels must also provide audiences with classificatory utility. We explore this tension and develop a process explanation of how firms in established market categories appropriate new labels under audience scrutiny. Analyzing eleven years (2011–2022) of earnings calls transcripts of eight leading Information Technology services firms, we theorize around their interest in appropriating the label ‘digital.’ We find that such appropriation is shaped by category work – forged in the tension between contrary impulses of the firm and the audience, and enacted through their claims, probes, and claim calibrations. We also highlight the symbolic appropriation dilemma and the unintended consequences of label appropriation for incumbents in established market categories.

Authors’ Names: Shailendra Kumar, Anirvan Pant, Deepti Mishra
Journal Name:  Strategic Management Journal
URL: https://sms.onlinelibrary.wiley.com/doi/10.1002/smj.70022