Processes Underlying Interfirm Cooperation

Published date01 January 2021
Date01 January 2021
AuthorSumit Kundu,Surender Munjal,Somnath Lahiri
DOIhttp://doi.org/10.1111/1467-8551.12476
British Journal of Management, Vol. 32, 7–19 (2021)
DOI: 10.1111/1467-8551.12476
Processes Underlying Interrm Cooperation
Somnath Lahiri,1Sumit Kundu2and Surender Munjal3
1Department of Management and Quantitative Methods, College of Business, Illinois State University, Normal,
IL, 61790, USA, 2Department of International Business, College of Business, Florida International University,
Miami, FL, 33199, USA, and 3Centre for International Business (CIBUL),Leeds University Business School,
Leeds University, Leeds, LS2 9JT, UK
Corresponding author email: slahiri@ilstu.edu
This special issue intended to bring together scholarly insights on the processes that under-
lie the formation, growth, management and termination of interrm cooperation (IFC).
In this introductory paper, we highlight whatwe know about IFC and why fresh perspec-
tives are warranted on this phenomenon froma conceptual and practical standpoint. We
also highlight the contribution of each paper published in this special issue. The seven
selected papers differ in their theoretical perspective, context,research methodology and
ndings, but collectively they enhance our understanding of various IFC processes. We
end this paper by highlighting fertile avenues of future research.
Introduction
Over the last few decades, scholars have devoted
signicant attention to understanding how coop-
eration between rms (interrm cooperation, or
IFC) initiates, develops, sustains and ultimately
terminates or dissolves (Combs and Ketchen,
1999; Lui, Wong and Liu, 2009; Lyu et al., 2020;
Parkhe, 1993). Accumulated research in this do-
main suggests that IFC may take many forms,
ranging from simple contractual agreements be-
tween buyers and suppliers, trade associations or
co-branding, to more complicated licensing, fran-
chising, joint ventures and strategic alliances (Ma-
jchrzak, Jarvenpaa and Bagherzadeh,2015; Oliver,
1990; Parmigiani and Rivera-Santos, 2011). Ex-
tant research further suggests thata wide variety of
antecedents at the individual, organizational,envi-
ronmental and national leveldeter mine the forma-
tion and growth of IFC (for details, see Beamish
and Lupton, 2009; Gur,Bendickson and Solomon,
2020; Kale and Singh, 2009; Martin, Romero and
Wegner, 2019). In addition, prior research high-
lights that IFC can signicantly impact rm-level
outcomes (Bruyaka, Philippe and Castañer, 2018;
Lyu et al., 2020; Wu, Lii and Wang, 2015), as
well as inuence outcomes at the partnership level
(Abdi and Aulakh, 2012; Beamish and Lupton,
2016; Jiang et al., 2020).
Extant scholarship also describes how IFC may
involveseveral stages. Broadly, these stages are for-
mation, design, growth, management, evaluation
and termination (Beamish and Lupton, 2009; Kale
and Singh, 2009; Nippa and Reuer, 2019; Ring and
Van de Ven, 1994). Further, IFC evolves over the
lifecycle, meaning that changes in the IFC struc-
ture take place as the conditions surrounding IFC
change and partners engage in ongoing learning
processes (Doz, 1996; Ring and Vande Ven, 1994).
As IFC evolves,r ms seek to achievegoal congru-
ency and a balance of power with their partners, so
that the creationand appropriation of value can be
positive and equal amongst them (Buckley et al.,
2016; Doz, 1996; Ozcan, 2018). However, benet in
terms of value does not always happen, since IFC
often fails at different stages of the lifecycle.
Nonetheless, the embarking of rms on IFC
continues to ourish. As the business world wit-
nesses growth in different types of IFC, unabated
interest in the scholarly community to fathom the
intricacies and outcomes of IFC is also clearly
evident. But what processes underlie this grow-
ing phenomenon? Despite the growth in research,
we lack sufcient understanding of the processes
© 2021 British Academy of Management and Wiley Periodicals LLC. Published by JohnWiley & Sons Ltd, 9600 Gars-
ington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA, 02148, USA.

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