Purpose – We aim to theorize about the selected aspects of the relationship between arts and business in the context of the recent proliferation of Art-Based Initiatives. The popularity of ABIs urges us to ask some fundamental questions about the nature of such interventions: What is really happening when arts is brought into the business context? Why does it “affect value-creation capacity”. Develop employees and infrastructure? Methodology – The paper has theoretical and speculative character. It is based analysis of literature and implementing a classical, widely recognized theory into the new field. Value- By extrapolating the theory of the phenomenologist Roman Ingarden from the field of aesthetics into management the paper provides a new framework for analysis of the process of creativity and innovation. The framework differentiates between three moments of the creation process: material basis, act of consciousness of the creator and concretization performed by the recipient. Each category requires different research methodology and plays a different role in the value-creating process. Practical Implications – By providing deeper understanding of the relation between art and business, which underlie any Art-Based Initiative, the paper contributes to more efficient and more precise application of such procedures. The findings will shed the light on the questions of “when?”, “where?” and “how?” to use ABIs.