Interfirm Value Creation: Conceptualizing for the Success and Sustainability of Strategic Partnerships

Abstract

To achieve and maintain sustainable interfirm values such as competitive advantage and customer satisfaction, the developments of interfirm relations are common in the business world. This paper investigates the antecedents, methods, and outcomes of interfirm value creation to ensure a successful and sustainable strategic partnership. We suggest interfirm value creation requires proper implementation of value creating methods such as information sharing, electronic collaboration, joint programs, joint cost management, etc. Also, value creating methods require a strategic relationship that is featured by interfirm trust and dependency, communication, commitment, etc. This paper provides a special focus on interfirm value creation in a vertical relationship within the supply chain, mentioning antecedents as preconditions and outcomes as consequences of interfirm value creation.