Value proposition is a key concept in the research on service and in the practice of service management. Value propositions are described as tools to communicate and motivate a joint value creation opportunity among involved organizations and stakeholders. The future orientation and intangibility of service places value proposition as the key element of competitive service business. However, the concept of value proposition if often vaguely defined, the underlying theoretical concepts missing,

more »

... nd the managerial practices to create value propositions unexplored. This study investigates how valuefocused industrial companies build value propositions by conducting customer value research. Building on our findings, we suggest theoretical and managerial frameworks for value proposition development. Theoretical Background Value propositions are described as communication devices indicating how the parties involved could create value by integrating their respective resources and capabilities. Value propositions are crafted, adapted, quantified, and verified during the buyer-seller interactions [33] within a dynamic value creation configuration ("service system") of resources, capabilities, and technology, which are all connected internally and externally to other service systems by value propositions [40] . Previous research has established several characteristics of value propositions, two of which are highly relevant here: Value propositions address specific stakeholders' salient business goals, e.g. [20] , and communicate bundles of value creating changes toward those goals [2] . Industrial value