Unpacking the relational capability of the firm

Interfirm collaborative relationships (ICRs) are increasingly important devices available to managers in their endeavors to achieving their companies’ fundamental objectives. However, in order to exploit the potential for competitive advantage embodied in interfirm collaboration, firms participating in ICRs should manage their relationships carefully. Specifically, I argue that a set of relational capabilities is needed, each of which refers to a specific facet of the overall strategic management of an ICR. Five such capabilities are discussed. The paper closes with some notes on the processes by which relational capabilities emerge and develop over time.