Citation
The relational view: Cooperative strategy and sources of interorganizational competitive advantage
TL;DR
Relation-specific assets create value through specialization and co-investment
This foundational strategy paper established how partnerships create competitive advantages unavailable to individual firms. Dyer and Singh argued that relational rents - profits generated through relationship-specific assets, knowledge-sharing routines, complementary capabilities, and effective governance - can be a source of sustainable competitive advantage.
The paper bridges biological mutualism concepts to strategic management, showing how organizational partnerships can create value neither partner could generate independently - the business equivalent of mutualistic synergy.
Key Findings from Dyer & Singh (1998)
- Relation-specific assets create value through specialization and co-investment
- Knowledge-sharing routines enable joint learning and innovation
- Complementary resources and capabilities combine to create unique value
- Effective governance minimizes transaction costs and prevents opportunism