A Co-opetition-Based Approach to Value Creation in Interfirm Alliances: Construction of a Measure and Examination of Its Psychometric Properties

This study underlines the limitations of commonly used proxies to measure value creation in interfirm alliances and addresses these limitations in two ways. First, this study adopts a co-opetition-based approach in theoretically conceptualizing value creation in interfirm alliances as a three-dimensional construct and argues that in addition to common benefit and private benefit (cooperation) (generally known as private benefits), a third dimension, namely private benefit (competition) should also be considered as an integral dimension of value creation. Second, by analyzing data collected from 155 firms of five high-technology research-intensive sectors in India that engaged in 288 alliances characterized by varying degree of co-opetition, this study empirically validates the distinctiveness of these three dimensions and presents a 17-item multidimensional scale of value creation.