Handbook of Management Scales/Private benefit, competition

Private benefit_competition (AVE = 0.65; CR = 0.94)

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

Private benefits refer to gains realized by each alliance partner individually. Private benefit_competition is defined as a value created by the focal firm by competing against its alliance partner to outperform it in activities, which are directly linked to the alliance-related activities but take place beyond the alliance boundary (Burt, 1991; Kumar, 2010; Rai, 201_).

Items

In this relationship, we have been able to create more value because:

• … our capabilities for leveraging jointly developed processes are better than the partner. (0.83)
• … our capabilities of leveraging jointly developed technology are better than the partner. (0.82)
• … our capabilities of marketing jointly developed products and services are better than the partner. (0.77)
• … our capabilities for leveraging jointly developed intellectual property are better than the partner. (0.89)
• … the new product and services jointly developed by us has opened up new market opportunities and customer base. (0.62)
• … our capabilities to differentiate the product and services jointly developed by us are better than the partner. (0.79)

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