Focal firms and interorganisational relationships in small economies: Towards a multi-level theoretical framework for enhancing value co-creation and performance

Abstract

Underpinning Resource-Based View (RBV) and Relational View (RV) as theoretical premises, we examine the influence of the macro and micro-level factors on inter-organisational relationship/alliances dynamics and competitive advantage of Focal Firms (FF) operating in an emerging Small Island Economy (SIE), Mauritius. Data gathered from in-depth interviews of boundary spanners of FF from diverse industries and sectors, were analysed using the open, axial, and selective coding procedure to establish the main factors influencing inter-organisational relationship dynamics and competitive advantage. Our findings explain and provide insights into the embedded nature of the firms, inter-organisational relationships, value co-creation (VCC), internationalisation capabilities and performance. The novel themes of cultural intelligence and tight-knit society were considered pivotal to firms' relational strategy and advantage, locally; and in their VCC and internationalisation opportunities and capabilities. Our propositions on the emerging themes and the core category web of ties stemming from the situational features define Mauritius, and the multi-level theoretical framework can be extended to understand inter-organisational relationship/alliances in other emerging economies with similar architecture.