Strategic Innovation

The co-relation between what design is and how design thinking can help achieve the exact definition of a product that is in the mind of a consumer. After numerous reading within the constraints of limited data and information at hand , I have tried to develop an understanding of the processes it takes to develop a refined product that has saleability. Design is not just about the product looks like and feels like but it is about the function of it. The research methods in order to carry out this study have merely been through extensive reading of different journals, book extracts and articles.

Bu çalışma, çeşitli makaleler, kitaplar, ders notları, röportajlar ve daha önce incelenmiş örneklerden yola çıkılarak hazırlandı. Çalışma bu alandaki uygulamalara destek olmayı amaçlayan bir kaynak ortaya koymayı hedefledi. Çalışmada, inovasyon, strateji, yönetim kavramlarının köken ve açılımları detaylı olarak incelendi. İnovasyon türleri arasında stratejik inovasyonun ayırt edici özellikleri ortaya koyuldu. Organizasyon kavramı çerçevesinde, stratejik inovasyonun konumlandırılmasıyla birlikte organizasyonda yer aldığı süreçler ve bu süreçlerin oluşturacağı çıktılara olan etkileri incelendi. Çalışmada, düzen bozucu inovasyon olarak tabir edilen stratejik inovasyonun, organizasyonun örgütsel süreçleri, finansal yapısı, pazarlama ve üretim süreçleri bağlamında yarattığı değişimin, sonuç odaklı olumlu veya olumsuz etkileri incelendi. Bu çalışma ile, objektif bir yaklaşımla, teori ve uygulama temelinde hazırlanan röportaj soruları organizasyonların çeşitli kademelerinde çalışan saha aktörlerine yöneltildi. Gelen yanıtlar üzerinden mevcut durum analiz edildi. Yapılan röportajlar sonucunda ulaşılan ortak tahayyül ile çalışma pekiştirilerek, stratejik inovasyonun organizasyon başarısına dair saha uygulamaları temelli çıktılarına ulaşıldı. Sonuç olarak, stratejik inovasyonun organizasyon süreçlerine olumlu etki ettiği, yaşanabilecek bazı olumsuzluklara rağmen, çoğunlukla yaratılan yeni ürün ya da hizmet ile organizasyonun yetkinlik ve kapasite geliştirmesini sağladığı sonucu elde edildi.

Anahtar kelimeler: İnovasyon, Strateji, Stratejik inovasyon, Organizasyon

This is a working paper from the exploratory phase of Visions and Pathways 2040 project. The paper presents a scan of futures inquiry trends, an outline of recent advances in relevant theory, and critically reviews similar ‘transition’-focused and related projects in Europe and the United States.

Co-authored with Stephen McGrail

The construct ‘value proposition’ is becoming evident in the world of design, as business and marketing intersect with the processes of design. Value proposition can be a powerful way of modelling ideas for products, rather than the actual realisation of those products. The paper offers a brief overview of literature referencing value proposition, found in relevant fields of business and innovation. The paper details a primary investigation of the usage of value proposition by design companies. This is conducted through an analysis of industrial design firms’ websites across six key countries. The findings are that value proposition is still a minor component of the offerings of design firms. However, it was found that larger companies do utilise similar forms of ‘idea modelling’. The paper goes on to propose a structured method of building and communicating a value proposition for designers – VP(d). This offers a bridge between various pre-product and post-product states. An implication is that it strengthens design and designers’ role in business and strategic innovation.

Innovation strategy enables organizations to remain relevant in a highly competitive arena by focusing the organization’s efforts on doing things differently.  The purpose of this study was to analyze the determinants of strategic innovation implementation in the banking sector, a survey of Commercial Banks in North Rift Region. It was guided by the following objective: to assess the effects of organizational culture, on the implementation of strategic innovation. The study was guided by the Higgin’s eight S model and the theory of transformation; it adopted a survey research design. The study targeted 229 respondents, who included regional managers, branch managers, and departmental heads of best performing commercial banks in the north rift region ranked by CYTONN’S Investment as at 10th December, 2017. Therefore the study included all the respondents in the study. Questionnaires were used as data collection instruments. Research experts were used to determine the validity and their suggestions and comments were used as a basis to modify the research items. The research instruments were pre-tested to ensure reliability, further split half method was adopted to calculate cronbach alpha coefficient. A value of above 0.7 confirmed the reliability of the research instruments. The data was analyzed using descriptive and inferential statistics and presented in tables. The study findings indicated that organizational culture (β = 0.103; ρ =0.023), influence the implementation of strategic innovation by Commercial Banks in Kenya North Rift Region. Therefore it is recommended that commercial banks should ensure existence of norms and values that ensure collaboration, flexibility as well as innovativeness among employees to ensure effective implementation of strategic innovations. When considering organizational leadership, Commercial banks need to oscillate between the four major leadership styles at the various levels of strategic innovation implementation. Effective value assessment will ensure that commercial banks allocate adequate resources in terms of finances, human resource, equipments and infrastructure so as to ensure effective strategic innovation implementation and commercial banks may need to appreciate that different strategic innovations may require different types of structures to be in operation at the same time in order for effective implementation to materialize.

Zunehmend rückt Innovation in den strategischen Kern zur Sicherung der Überlebensfähigkeit von Unternehmen. Anpassungsfähigkeit der Organisationen ist dafür eine Voraussetzung. Diese Fähigkeit wird auch durch die individuellen Veränderungskompetenzen in der Organisation bestimmt. Um individuelle Veränderungskompetenz durch beobachtbare Verhaltensweisen und Persönlichkeitsmerkmale zu operationalisieren, wird eine interdisziplinäre Analyse vorgestellt. Die Überführung der Erkenntnisse daraus in ein Kompetenzkonzept ermöglicht die praxisorientierte Umsetzung. Dazu werden verschiedene Rollen in Veränderungsprozessen von Organisationen charakterisiert und dafür ein verbindendes Konstrukt der „Veränderungsintelligenz“ eingeführt, das alle Kompetenzen und Potenziale von Individuen zum erfolgreichen Umgang mit Veränderung betrachtet. Die abgeleiteten Verhaltensweisen eröffnen die Operationalisierung im Sinne einer Messung auf der einen und die gezielte Entwicklung von Veränderungsfähigkeiten auf der anderen Seite. Dafür werden geeignete Erfassungs- und Entwicklungsmethoden vorgestellt. Dies ermöglicht die konkrete Umsetzung von Diversity-Management im Innovationskontext.

Attainment of organizational competitive advantage and the persistent enhancement of sustainable organizational performance
is the central focus of many organizations. Although, there is still debate on the application of strategic innovation as a
practice in the performance of organizations in many researches, positive effect of using strategic innovation as a tool to
achieve sustainable and competitive advantage cannot be ignored. The objective of the study was to establish the influence of
strategic innovation on performance of coffee cooperative societies in Nyanza region. The study was grounded on resource
based theory. The research was guided by positivistic research design. The target population was the top management
personnel in both coffee cooperatives and ministry of cooperatives. Nasiuma (2000) formula was used to select a sample of
394 respondents. Questionnaires were used to collect data. A pilot study was carried on randomly selected individuals in
different coffee cooperative societies in Bungoma County. Both descriptive statistics (percentages, mean, standard deviation
and variance) and inferential statistics (Multiple regressions and Pearson’s correlation) were used to analyze data. The
findings showed that strategic innovation had a positive and significant relationship with performance of cooperative societies
in Nyanza region. The study concludes that strategic innovation enhanced performance of coffee cooperative societies. The
study recommended that management of cooperatives societies should a.llocate enough funds for research and development. In
addition, the management needs to understand and come up with best strategy to be innovative and creative, and come up with
new products

In an everyday perspective of resistance, there is a tendency to favor hu­man action and agency, both in the exercise of power or in the acts of resistance. The aim of this study is to examine material agency in every­day power-dynamics and to open a methodology of resistance studies in the realm of physical objects, designs and materials. In correlation to a "new materialist'' perspective on power, resistance works to build affinity between humans and nonhuman agency and disrupt materially-support­ed subordination. In this study, a materialist methodology is introduced, with examples of how consumer objects are transformed to interfere with consumer relationships to become tools far cultivating resistant capabili­ ties. As a case, the study examines a handbag made from a cookie box, produced by the Spanish activist "movement " Yomango, where the mate­rial properties of the metal bpx are mobilized to become active in the re­ sistance. From a materialistperspective, the handbag becomes more than-a symbolic prop for human-led activists and joins the ranks of co-resistors.

Technologiemärkte stellen Unternehmen heute vor die Herausforderung beständig innovieren zu müssen, um im globalen Wettbewerb bestehen zu können. Innova-tion wird somit weniger ein Element erfolgreicher Differenzierung sondern Kern-frage der Überlebensfähigkeit und rückt somit in den strategischen Kern. Die Lö-sung dieser Aufgabe stellt wesentliche Anforderungen im Bereich der Koordination und Organisation. Dies wird im konzeptionellen Rahmen der dyna-mischen Fähigkeiten diskutiert. Dem Paradigma der Open Innovation (offene In-novation) folgend, stellt sich jedoch zusätzlich die Frage, wie neben der Koordina-tion organisationsinterner Ressourcen die zielgerichtete und effiziente Koordination organisationsexterner Ressourcen geleistet werden kann. Dafür sind intermediäre Mechanismen strategischer Netzwerksteuerung erforderlich, die im vorliegenden Artikel beleuchtet werden. Die Fallstudie Cisco illustriert dazu ein Umsetzungsbeispiel. Die nachfolgende vergleichende Untersuchung etablierter Non-Profit Intermediäre ermöglicht die Ableitung von Anforderungen und Kern-elementen der unternehmerischen Umsetzung.

In technologiedominierten Märkten stehen Unternehmen vor der Herausforderung, beständig innovieren zu müssen, um im Wettbewerb bestehen zu können. Innovation rückt damit in den strategischen Kern und bestimmt die Überlebensfähigkeit der Organisation, Innovation muss daher strategisch geführt werden. Diese strategische Führung muss auf organisationale Anpassungsfähigkeit gerichtet sein. Dies wird auch als Dynamische Fähigkeit („Dynamic Capability“) der Organisation bezeichnet und beschreibt die Fähigkeit, die Vernetzung relevanter Ressourcen in Reaktion oder besser Antizipation auf Marktdynamik zu (re-)konfigurieren. Die Umsetzung dieser Fähigkeit setzt u.a. Adaption auf Ebene individueller Mitarbeiter voraus. Das heißt, das Handeln und Verhalten der Mitarbeiter muss zielgerichtet beeinflusst werden können. Die dafür traditionell eingesetzten, operativen Instrumente der Personalentwicklung (PE) werden jedoch meist organisational getrennt und zeitlich deutlich nachgelagert zur Strategieformulierung entwickelt. Daher wird hier ein Ansatz vorgestellt, der diese Trennung aufhebt und im Gegenteil Prozesse strategischer Innovation und der Organisations- und Personalentwicklung (OE/PE) integriert – strategiefokussiertes Kompetenzmanagement. Dafür werden relevante individuelle Kompetenzen als Basis dynamischer Fähigkeiten abgeleitet und durch beobachtbare Verhaltensweisen operationalisiert. Durch Rückkoppelung dieser Ergebnisse sowohl in Strategie- als auch PE-Prozesse können gezielte individuelle Entwicklungsmaßnahmen zur Steigerung der Innovationsfähigkeit abgeleitet werden. An einem konkreten Fallbeispiel wird die erfolgreiche Anwendung in einem Technologieunternehmen illustriert.

En este ensayo presentamos en español los conceptos fundamentales y de aplicación de nuestro concepto de propulsión espacial prolongada y sus ventajas comparativas comparadas con los sistemas vigentes hoy. Se trata de un aporte fundamental hacia la conquista del viaje espacial prolongado, de bajo costo y sin el uso de propelentes químicos que promete, de ser aplicado extensamente, transformar la industria aeroespacial global.

In an attempt to deal with challenges such as increased competition, the global economic crisis, and the pandemic crisis, cultural organizations increasingly tend to adopt business theories and tools. The present paper addresses this issue in an industry that is not very frequently discussed, that of orchestra, using Orchestra Mobile as the case study. Based on literature review and interviews, and with reference to some of the latest, innovative approaches to management and strategy supported by digital technologies, the paper examines how this new entry in the industry (in 2010): (i) not attached to a concert hall (and, therefore, dependent on others) and with no state funding, survived against established organizations of global recognition, who were attached to prestigious concert halls, and enjoyed strong funding on the part of the state; (ii) with no external support, succeeded within the peak of the global economic crisis; (iii) decided long before the pandemic crisis to oper...

This study manufacturing and service companies as one of the most important types of firms the activity is studied and the role of strategic innovation and open innovation on the performance of firms operating  in the zone special economic bushehr. To collect  information from questionnaire open innovation Rangus (2014), strategic innovation of jafari (2013) and has been  the company's performance as developed . The population of the study consisted of 30 manufacturing and Service Company operating in the zone  special  economic bushehr. The sampling in this research possible and random . Morgan table was  used  to determine the sample  size. this means that the community had 440 active employees at the zone  special economic bushehr.  205 of which 202 samples were collected. And for data analysis used path analysis and was used of test Tvalue. The results  showed that  strategic innovation and open innovation have a significant impact on corporate performance.Among the strategic innovation  and open innovation dimensions, three dimensions of value innovation , innovation market  market entry and sharing of knowledge and  new technologies on the performance of companies operating in the zone special economic bushehr  had  appositive and significant effect.
Introduction
Innovation The process of getting ideas through customers is satisfactory. Also, turning knowledge into new products and services is also an innovation. One of the results of innovation is value creation and productivity, and thus the growth of commerce. Strategic innovation is the concept of existing industry competition in a completely different way that redefines and upgrades customer values. Contrary to traditional innovation, this different method of competition does not just include product innovation. Such innovation may be related to the concept of product, production or marketing of related products and products (Speed ​​Ashtiani, 2008: 143). Innovators can improve the outcomes of the company and assume that companies, in addition to internal organization ideas, also benefit from ideas outside the organization, and the boundaries between companies and environments Its permeability is permeable (Atuahene-Gima, 2005). It also encourages the effective use of less-used resources and thus improves performance (Chesbrough, 2006). The confrontation with the tidal wave of global-social, technological, and economic change is one of the reasons that, in a rapidly changing, progressive and globalized economy, can not be solved only through a kind of innovation, for example, technological innovation, Here, we need some kind of innovation that, by employing appropriate forms of innovation, will help organizations or business firms adapt themselves to the changing business environment as quickly as possible (Hejazi & Diasalar, 2011). The power of innovation is the most important determinant of performance. Companies with high capacity of innovation can achieve high performance by adapting the environment and developing new capabilities (Motaifi et al., 2010: 61). Production and service companies play an important role in the development of a community. Improvement in the quality and innovation of production will stimulate the growth of these companies (Sanchez, 1995). An organization that does not have creativity and innovation can not survive and disappear over time. Hence, organizations are continuously looking for ways to strengthen creativity and innovation and remove barriers in the organization. In many industries, companies are under pressure to improve their innovation abilities (Mirfakhredini et al., 2015). For manufacturing and service organizations, there is nothing but more efficient and attractive to customers, because if manufacturing organizations or services have the necessary effectiveness in attracting customers, in addition to increasing customer satisfaction (people), they reduce costs. Organizational and, in fact, increasing organizational efficiency. Given the widespread and diverse needs of people in the service sector, innovation in such organizations is urgent and necessary. Innovations in companies leave the repetition cycle and drown in the daily routine (Tide & Bustent, 2012:7). Strategic innovation and open innovation approaches can create a change in the performance of companies and address the weaknesses and bottlenecks of traditional approaches. The combination of these two variables is associated with the underlying function of companies that use firms to achieve high performance and compete with competitors and survive innovation, to look at innovation as an indispensable strategy, along with the changing environmental changes Organizations that are influential in identifying innovations and responding to these changes are the most appropriate. In the present research, we seek to answer the question that strategic innovation and open innovation have an impact on the performance of companies active in the special economic zone of Bushehr.
Case study
This study manufacturing and service companies as one of the most important types of firms the activity is studied and the role of strategic innovation and open innovation on the performance of firms operating  in the zone special economic bushehr.
Materials and Methods
The present paper is based on the purpose of the application. The research method is descriptive correlational and data gathering method is a survey method. The purpose of the research is to investigate the role of strategic innovation and open innovation on the performance of companies using the Balanced Scorecard method. The statistical population of the study consists of managers and experts of 30 manufacturing companies and services in the special economic zone of Bushehr. The total number of these people is 440 people. Sampling in this research is a simple random probability that is selected among the employees of the companies active in the special economic zone of Bushehr. Morgan table is used to determine the sample size. So, for the 440 community of employees of the company active in the special economic zone of Bushehr, referring to the Morgan table, the sample number is 205 people.
Discussion and Results
The dramatic increase in global competition, along with a change in knowledge-based economy, creates a renewed emphasis on innovation. Rapid changes in the competitive environment create a new world of competition. This new economy is driven faster by other innovators by those who are innovative (creative, creating knowledge, or transforming it into new products and services). Innovation is at the head of everything supported by entrepreneurial action and aims to create value through the use of knowledge. Therefore, the superior value for the customer is transferred through innovation in organizations. Therefore, attention to innovative and strategic improvement of the performance of the companies.
Conclusion
Innovating market entry makes strategic innovators distract from the previous approach they serve their customers. For example, the advent of the Internet created a lot of opportunities for customers who used non-traditional methods. Therefore, market entry innovation is not limited to the use of new technologies for market access, but could include any new approach to marketing a company's products or services that are different from those of other competitors. Future researchers can examine the relationship between types of innovation with sustainable competitive advantage, different dimensions of business performance, or enterprise entrepreneurship in organizations or companies.

Purpose –The purpose of this research is to unveil effective SME marketing actions and strategies in terms of performance during post-crisis era of fragile economic conditions. This paper further examines the effects of IT Marketing Infrastructure (ITMI) on both performance and Customer Equity Drivers (CEDs). Last, but not least, indirect effects of Market Orientation (MO) on Performance are also researched. Design/methodology/approach – A personal interview survey was conducted in Greece using a structured instrument deriving from adjusted items of past research. A systematic random sample of 242 SMEs was collected from major Greek cities and a wide range of industries.  Findings – Findings unveiled that the same actions applied by large companies, also work for SMEs/VSEs. In addition, ITMI enable smaller firms to apply marketing strategies required to achieve higher Marketing Performance. However, MO is the key for excessive performance. Nevertheless, the indirect effect of MO on ...

This chapter examines innovation in the context of the small scale fashion
industry. The chapter tells a story of the struggles of translating innovative
ideas into material forms, and shows that the work of innovation consists
of continuous attempts to create material order. Hardy negotiations are
involved when innovative ideas are given durable form. The process of
materialization is a complex process, where abstract ideas may meet material
obstacles and textural boundaries. Innovation, thus, is a continuous
process of negotiating material realities.
The main points of the chapter are that innovation is a continuous
process of working for order. Very often, material objects are central in
fixing and materializing an innovative idea. This chapter argues that it does
not make sense to talk about innovation without focusing on the materialities
which the innovative efforts are centered around. Innovation is viewed
as a process which works against a background of fluidity, of continuous
decay and disintegration. Central to innovative efforts are two things: materializations
- working at and with physical objects - and conversational
processes which aim at sharing perspectives on the innovation activities.
Processes of innovation are processes of social and material conversation
and negotiation.
The concept of innovation with care points to relations between the
diverse sets of actors which may participate in innovation, and the advice
that these relations must be handled with care that they must be worked
at and bridged together. This chapter suggests that this bridging is undertaken
with explicit attention to the role of material entities. Material objects
are viewed as potential stabilizers, they are viewed as the boundary objects
which may give concrete form to innovative ideas, but they are also viewed
as entities which are fragile. Their cohesion may be obstructed, and their
materialization may fail to emerge, and even once they are constructed,
they may easily fall apart again. This shows that innovation is a continuous
process, and that maintaining an innovation is just as crucial as the initial
birth of an idea. Innovation is portrayed as taking place in tightly knit,
inseparable, and co-creative socio-material relations in continuous making
and decay.

Innovation strategy enables organizations to remain relevant in a highly competitive arena by focusing the organization’s efforts on doing things differently.  The purpose of this study was to analyze the determinants of strategic innovation implementation in the banking sector, a survey of Commercial Banks in North Rift Region. It was guided by the following objective: to assess the effects of organizational culture, on the implementation of strategic innovation. The study was guided by the Higgin’s eight S model and the theory of transformation; it adopted a survey research design. The study targeted 229 respondents, who included regional managers, branch managers, and departmental heads of best performing commercial banks in the north rift region ranked by CYTONN’S Investment as at 10th December, 2017. Therefore the study included all the respondents in the study. Questionnaires were used as data collection instruments. Research experts were used to determine the validity and their suggestions and comments were used as a basis to modify the research items. The research instruments were pre-tested to ensure reliability, further split half method was adopted to calculate cronbach alpha coefficient. A value of above 0.7 confirmed the reliability of the research instruments. The data was analyzed using descriptive and inferential statistics and presented in tables. The study findings indicated that organizational culture (β = 0.103; ρ =0.023), influence the implementation of strategic innovation by Commercial Banks in Kenya North Rift Region. Therefore it is recommended that commercial banks should ensure existence of norms and values that ensure collaboration, flexibility as well as innovativeness among employees to ensure effective implementation of strategic innovations. When considering organizational leadership, Commercial banks need to oscillate between the four major leadership styles at the various levels of strategic innovation implementation. Effective value assessment will ensure that commercial banks allocate adequate resources in terms of finances, human resource, equipments and infrastructure so as to ensure effective strategic innovation implementation and commercial banks may need to appreciate that different strategic innovations may require different types of structures to be in operation at the same time in order for effective implementation to materialize

Purpose –The purpose of this research is to unveil effective SME marketing actions and strategies in terms of performance during post-crisis era of fragile economic conditions. This paper further examines the effects of IT Marketing Infrastructure (ITMI) on both performance and Customer Equity Drivers (CEDs). Last, but not least, indirect effects of Market Orientation (MO) on Performance are also researched. Design/methodology/approach – A personal interview survey was conducted in Greece using a structured instrument deriving from adjusted items of past research. A systematic random sample of 242 SMEs was collected from major Greek cities and a wide range of industries.  Findings – Findings unveiled that the same actions applied by large companies, also work for SMEs/VSEs. In addition, ITMI enable smaller firms to apply marketing strategies required to achieve higher Marketing Performance. However, MO is the key for excessive performance. Nevertheless, the indirect effect of MO on ...

Recommendations presented by Prof Colin Coulson-Thomas during the valedictory session of the 29th World Congress on Leadership for Business Excellence and Innovation organised by India's Institute of Directors and held in the Astor Ballroom of the Hotel Habtoor Palace, Dubai (UAE)

The purpose of this study is to investigation the relation between technology intelligence and strategic innovation in companies located in the pardis technology park. The study is a descriptive one; and it is based on a correlational method. The population of the study includes Senior Managers all the  peweful companies located in the pardis technology park that are 65 company. At last 50 coompanies answerd the questionnaires as sample size. To collect the data, in accordance with the dimensions of technology intelligence Savioz (2004) and strategic innovation questionnaire based on the dimensions Ashtiani (2008) has been used. Both content validity was confirmed by a survey of teachers and experts in field technology and innovation. The reliability of both questionnaires calculated using cronbachs alpha and values are respectively 0.960 and 0.941. In order to analyze the data, software SPSS and SmartPls were used. In analyzing the data, descriptive and inferential statistical tests results indicators and structural equation modeling is presented. The result of Pearson test indicates a positive and meaningful relationship between technology intelligence and strategic innovation. Furthermore, Investigation of fitting indicators show that the model used in the study is acceptable fitness.
Introduction: The purpose of this study is investigation of relation between technology intelligence and strategic innovation in companies located in the pardis technology park.
Case study: companies in pardis Technology Park
Materials and Methods: The study is a descriptive one; and it is based on a correlational method. The population of the study includes Senior Managers all the companies located in the pardis technology park that are 65 companies. At last 50 coompanies answerd the questionnaires as sample size. To collect the data, in accordance with the dimensions of technology intelligence Savioz (2004) and strategic innovation questionnaire based on the dimensions Ashtiani (2008) has been used. Both content validity was confirmed by a survey of teachers and experts in field technology and innovation. The reliability of both questionnaires calculated using cronbachs alpha and values are respectively 0.960 and 0.941. In order to analyze the data, software SPSS and SmartPls were used.
Discussion and Results:  In analyzing the data, descriptive and inferential statistical tests results indicators and structural equation modeling is presented. The result of Pearson test indicates a positive and meaningful relationship between technology intelligence and strategic innovation. Furthermore, Investigation of fitting indicators show that the model used in the study has acceptable fitness.

Customer satisfaction has been shown to be key in pursuing firm profitability, both in consumer and business markets. However, the relationship between customer satisfaction and the costs that a company incurs to obtain satisfaction has been less widely investigated. The present study seeks to fill in this gap, by identifying the levers controlling the relationship between value-for-customer and costs in B2B service industries. By exploring those characteristics of B2B services that make it difficult to correlate costs and income, the article proposes a model to link the service component to satisfaction, on the one hand, and to activity costs, on the other. The model is tested on a set of business customers of an advertising agency.