Handbook of Management Scales/Common benefit

Common benefit (AVE = 0.63; CR = 0.91)

Description

The author (1) adopts a coopetition-based approach in theoretically conceptualizing value creation in interfirm alliances as a construct consisting of three dimensions: common benefit, private benefit_cooperation, private benefit_competition and (2), based on data collected in India, empirically validates a scale to measure these dimensions.

Definition

Common benefit is defined as “a supernormal profit jointly generated in an exchange relationship that cannot be generated by either firm in isolation and can only be created through the joint contributions of the specific alliance partners” (Dyer & Singh, 1998, p. 662). Note: Dyer & Singh term it “relational rent” rather than “common benefit”.

Items

Within the alliance boundary, this alliance has led to:

… the development of new resources and new capabilities leading to competitive advantage. (0.77)
… more effective exploitation of existing resources leading to improved cost effectiveness. (0.85)
… the development of new knowledge leading to increased innovation. (0.77)
… more effective exploitation of existing knowledge leading to greater efficiency. (0.90)
… more efficient deployment and utilization of resources leading to continuous improvement of quality of products and services. (0.85)
… a more effective penetration of market leading to improvement of market positions of both alliance partners. (0.60)

Source

Rai (201_): A Co-opetition-Based Approach to Value Creation in Interfirm Alliances: Construction of a Measure and Examination of Its Psychometric Properties. Journal of Management, Vol. __, No. __, pp. __-__.

Related Scales

Alliance performance
Value creation in interfirm alliances: common benefit, private benefit_cooperation, private benefit_competition