Self and collective interest in business relationships

Abstract

Interaction is the basis of business relationships, where the parties undertake collaborative activities in pursuit of self-interest. This entwinement of self and collective interest provides a partial understanding of the dynamic underlying business relationships. This paper examines the self-interest constructs of a firm's economic goals and the resource efficiency resulting from ties across firms in a relationship. The paper contributes to the inter-firm literature by examining the associations between these self-interest constructs and a collective interest outcome of relationship performance. A study using a sample of business software firms finds strong associations between these constructs, with results presented as a structural equation model. The final sections of the paper discuss the research and managerial implications.