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The influence of the institutional context on interfirm relationships: A Comparative study between low- and high-income countries

Author

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  • Ismail Badraoui

    (Rabat Business School, Université Internationale de Rabat)

  • Youssef Boulaksil

    (United Arab Emirates University, College of Business and Economics)

  • Tarik Saikouk

    (Excelia Business School, CERIIM)

  • G.A.J. van der Vorst

    (Operations Research and Logistics group, Wageningen University and Research)

Abstract

Today's competitive environment has pushed companies to developed collaborative relationships with other firms on the market to improve their performance and achieve a competitive advantage. Among the existing collaborative strategies, horizontal collaboration has gained much attention recently. However, besides the potential improvement this strategy can bring, very few successful long-term cases are reported in the literature. In this paper, we investigate the role that country context plays in determining the collaboration success, specifically the strength of the institutional context. A model linking collaboration activities to its outcomes is tested in two independent samples representing upper-middle-high-income (UMHI) and lower-middle-low-income countries (LMLI). The results show that firms in UMHI countries are more likely to commit to the relationship once trust is established, whereas firms in LMLI countries are more likely to be satisfied with the relationship as a result of developed trust.

Suggested Citation

  • Ismail Badraoui & Youssef Boulaksil & Tarik Saikouk & G.A.J. van der Vorst, 2021. "The influence of the institutional context on interfirm relationships: A Comparative study between low- and high-income countries," Economics Bulletin, AccessEcon, vol. 41(2), pages 802-815.
    • Handle: RePEc:ebl:ecbull:eb-20-01141
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    References listed on IDEAS

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    Cited by:

    1. Yasanur Kayikci & Yigit Kazancoglu & Nazlican Gozacan‐Chase & Cisem Lafci, 2022. "Analyzing the drivers of smart sustainable circular supply chain for sustainable development goals through stakeholder theory," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3335-3353, November.

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    More about this item

    Keywords

    Interfirm collaboration; Institutional context; developed countries; developing countries;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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