Interfirm cooperation and engagement barriers in a family business context

Purpose This study aims to understand to what extent family firms engage in and understand the importance of cooperation whilst analysing the underlying barriers that may restrain cooperative engagement. Design/methodology/approach Considering the purpose of this study, a qualitative exploratory approach is adopted, using a multiple case study methodology, consisting of four cases. Thus, interviews were chosen as the source of data collection, as this allows proximity and involvement with those with power to engage in cooperation. Findings The results highlight that family business particularities seem to have an aggravating effect on the general barriers to cooperative engagement. Managerial characteristics such as risk aversion, concern about independence and emotional attachment to the business, along with a lack of qualified knowledge, seem to be the most salient obstacles. Practical implications Interfirm cooperation has become more vital for organizational success. However, empirical contributions regarding the barriers to engaging in cooperation, especially within a family business context, are limited. This study seeks to present theoretical barriers to engaging in interfirm cooperation and effectively link them within a family business context. Originality/value Being structured around the underlying challenges for interfirm cooperation, this paper contributes to advancing this specific research stream and presents practical contributions for managers for more effective implementation.

Evolutionary Dynamics of Interfirm Cooperative System for Radical Innovation from Knowledge Collaboration Perspective

Interfirm cooperation can be seen as a significant and effective way for exploring radical innovation. In this article, a framework of interfirm cooperation, with a core manufacture and upstream counterparties in industry, and its evolving mechanism in the reverse-chain radical innovation are established from the perspective of the fundamental role played by knowledge collaboration. Then, an evolution model of interfirm cooperation is constructed on the theory of vibration mechanics, and its evolutionary dynamics is explored through numerical and simulation analysis mainly on the key factors of knowledge potential difference and knowledge rent-seeking behaviour within the firms. The findings show that, if there is no knowledge-based rent-seeking behaviour from the upstream firms, the probable innovative performance from the interfirm cooperation should vary for the knowledge potential difference between the cooperative firms, but can come to a certain equilibrium state. Meanwhile, if the knowledge rent-seeking behaviour does exist, knowledge potential difference would lead the innovative performance evolving ultimately in divergence. What’s more, the negative effect caused by the rent-seeking behaviour could be alleviated or weakened to some extent by the excitation mechanisms presented by the core firms in the cooperation system. Therefore, the drawn conclusions should be useful for the core manufactures’ implementing various strategies to maintain or enhance the cooperation for radical innovation in industry.

Investing in IT: a new method for improving the efficiency of contract governance in interfirm relationships

PurposeThis study aims to enhance our understanding of how advanced IT improves the efficiency of contract governance in mitigating partners' opportunistic behaviors in interfirm cooperation and the moderating effects of boundary spanners' personal relationships and cooperative orientation.Design/methodology/approachContract governance is divided into two subdimensions: contract completeness and contract execution safeguards. Then, the hypotheses are examined using partial least squares–based structural equation modeling based on survey data collected from manufacturers in supply chain relationships.FindingsThe results first demonstrate that advanced IT can improve efficiency in both the design of complete contracts and the provision of contract execution safeguards. Second, the results also show that both the personal relationships between boundary spanners and the cooperative orientation of the firm have different moderating effects. Finally, contract execution safeguards are effective in mitigating partners' opportunistic behaviors, whereas contract completeness is not.Originality/valueThis study enriches the contract governance literature in two ways. First, it unveils how advanced IT improves the efficiency of contract governance and the effects of two contingent factors (i.e. personal relationships and cooperative orientation), thus extending the research on contract governance. Second, it reveals the different effects of contract completeness and contract execution safeguards on partners' opportunistic behaviors, thus deepening our understanding of the role of contracts in interfirm cooperation.

How to balance interfirm relationships? A case from high-speed railway industry

Purpose Balancing interfirm relationships is important for firms’ long-term superior performance. However, prior studies mainly focus on interfirm competition or interfirm cooperation separately, ignoring the balance of interfirm relationships. To bridge this gap in knowledge, this study aims to develop a framework to evaluate the balance of interfirm competition and interfirm cooperation and propose strategies to optimize a firm’s interfirm relationships. Design/methodology/approach After an in-depth literature review, a framework was developed for evaluating and optimizing the interfirm relationships. Taking the high-speed railway industry as an example, the proposed framework was implemented. Findings The results of the case confirm that the balancing of interfirm relationships can lead to more superior firm performance. Also, rather than mutual suppression, the interfirm competition and interfirm cooperation present a roughly positive relationship. Originality/value This study would contribute to the existing knowledge body by developing a framework for balancing interfirm relationships. Also, this study can aid practitioners in evaluating and optimizing their interfirm relationship structures.

Can CEOs’ Corporate Social Responsibility Orientation Improve Firms’ Cooperation in International Scenarios?

This paper intends to analyze the role of the chief executive officer’s (CEO) Corporate Social Responsibility Orientation (CSRO) on interfirm cooperation. Interfirm cooperation is central to gaining competitiveness, particularly in international scenarios where firms must deal with uncertain challenges. Nonetheless, the current understanding of its key determinants needs further development. We argue that whereas environmental hostility pushes firms to cooperate for self-interested purposes, CEOs’ CSRO pulls towards cooperation as an end in itself, even more so under hostile conditions where the need for good-willed committed partners is higher. In a sample of 124 internationalized Spanish firms, we found that CEOs’ CSRO alone increases firms’ international interfirm cooperation and that this impact is stronger under hostile international environments. Our findings thus highlight the importance of leading firms in a socially responsible direction to boost their interfirm cooperation levels in international scenarios.