Abstract
Collaboration among firms can breed innovative value chain architectures serving novel business models. So far little is known about how an innovative value architecture emerges in vertical and horizontal collaboration among firms. This paper develops and empirically tests a model of how market overlap and perceived competition among collaborators influences the creation of innovative value architectures. Our one-year time-lagged performance evaluation shows that market overlap among collaborating firms drives novel value architectures, especially when firms employ complex contracts and/or collaborate with high relationship intensity. Perceived high competition among firms is functional to novel value architectures only when firms operate under high relationship intensity, not when trust is strong.
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