Development of dyadic relationships between competitors within multi-actor alliances

Abstract

Purpose Several studies have focused on the development of relationships between buyers and sellers; however, we still have a limited understanding of the interaction processes of the relationships between competitors over time. This paper aims to explore the development of relationships between competitors adopting an interaction and network approach. Design/methodology/approach This study examines nine relationships between competitors that are part of two multi-actor alliances in the pharmaceutical industry. The study builds on nine longitudinal case studies supported by 24 in-depth interviews. Findings The findings reveal that the development of the relationships between competitors within the alliances comprises exchange and coordination processes. The cases show that relationship development is a “never-ending process” within the alliance that includes five phases: co-existence, formation, development, dormancy and dissolution. A third party is identified as having a catalyst role in relationship development. Originality/value Supported by a comprehensive literature review on relationship development models, this study highlights the value of applying an interaction and network approach for studying relationships between competitors.