Abstract
PurposeTo explore how and why the social structures of strategic partnerships are shaped by actors and how these interrelate with a team's interpersonal relationships over time. Grasping the complexity of this interplay is essential if we want to comprehend what actually goes on in these partnerships and understand why actors often disengage from them.Design/methodology/approachIn three cases, 14 in-depth interviews were held with knowledgeable actors about important events and activities that influenced the relationships between partners. Interview data were triangulated with journals kept by the lead author, who participated as an engaged scholar in the three cases. Because this study took an interdisciplinary approach, new insights could evolve from the multi-level analysis.FindingsTrust has a moderating effect on the relation between open-book accounting and the degree of control a dominant party wants to exercise. When the level of control is raised, this can signal distrust to the other partners, which can harm the relationship. When partners feel more dependent on each other's capabilities to reach their long-term goals, the parties seem to be less likely to put the blame on one of the partners in the case of undesirable events.Practical implicationsManagers should be aware of their power position and acknowledge the effects of power on their relationships. If long-term and close collaboration does not emerge in their partnership, it may be due to how they use their power position.Originality/valueThanks to the interdisciplinary approach, this is the first study that shows the significance of trust and power in maintaining strategic partnerships in the construction industry, and how trust can affect the financial rules of actors.
Highlights
In many industries, strategic partnerships have become an important way for firms to cope with the challenges of doing business today (Gomes et al, 2016)
4.1 Case A: trust balancing power relations between contractor and subcontractor In case A, a potential financial conflict developed between the contractor and an installation subcontractor who was running behind schedule and creating problems for the other firms in the production chain
The subcontractor’s project manager explained: When an installations subcontractor falls behind schedule, often the whole supply chain falls behind. (Installations subcontractor’s project manager, case A)
Summary
Strategic partnerships have become an important way for firms to cope with the challenges of doing business today (Gomes et al, 2016). Challenges such as climate change necessitate firms to innovate, which typically requires them to collaborate with complementary firms, as it allows them to share and integrate their knowledge and production capacities (Buckley et al, 2009; Edmondson and Nembhard, 2009; Sambasivan et al, 2013). Long-term and cross-project partnerships are thought to have many positive effects, such as providing learning opportunities and allowing cost reductions (Cheng et al, 2004; Ingirige and Sexton, 2006). Case studies report that team members struggle with the partnership’s social system because it contradicts earlier experiences that are often gained in more traditionally procured projects (Venselaar et al, 2015; Bygballe and Sw€ard, 2019)
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