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

Abstract

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.

Citation

Zhang, N., Deng, X., Hwang, B.-G. and Niu, Y. (2020), "How to balance interfirm relationships? A case from high-speed railway industry", Journal of Business & Industrial Marketing, Vol. 35 No. 11, pp. 1785-1799. https://doi.org/10.1108/JBIM-09-2019-0389