Gaining relational competitive advantages: a conceptual framework on rent generation and appropriation

Abstract

Establishing Strategic Technological Partnerships (STPs) with foreign partners is an increasingly studied topic within the innovation management literature. Partnering firms can jointly create sources of relational competitive advantage. Chinese firms often lack Research and Development (R&D) capabilities but are increasingly becoming preferred technological partners for transnational corporations. We investigate an STP between a Scandinavian and a Chinese firm and try to explore how to gain relational competitive advantage by focusing on its two essential stages: relational rent generation and appropriation. Based on an exploratory case study, we develop a conceptual framework that consists of process, organisational alliance factors and coordination modes that we propose lead to relational competitive advantage.