Journal of Service Research, Ahead of Print.
Our study applies legitimacy theorizing to service research, zooming in on co-prosumption service business models, which reside on significant direct contacts among provider-actors and customers as well as fellow customers in the service space. Our findings are based on a longitudinal flexible pattern matching method on 17 coworking spaces. The service cocreation nuances the double role of customers as evaluators and cocreators of legitimacy. This is because customers can have immediate perceptions of the actions and values of the services in their legitimacy evaluation while cocreating the service. Legitimacy shaped via social and recursive processes occurs in three stages: provisional, calibrated, and affirmed legitimacy. Findings inform four trajectory mechanisms of value-in-use pattern provenance, emergent Business Model development adaptive to the spatial context and loyal customers, visible trances as well as inside-out and outside-in identification processes. Further, the processes in the micro-ecosystem of an interstitial service space can develop a superordinate logic which overlays the potentially present coopetive and heterogenous institutional logics and interests of service customers.