When does interfirm adaptation pay off? A configurational assessment in the B2B context

Abstract

While interfirm adaptation helps B2B firms gain access to complementary resources, empirical evidence suggests that adaptation of interfirm resources has an equivocal impact on firm performance. The mixed findings imply that factors like causal ambiguity may hinder the effective use of these resources. To investigate this phenomenon, the current study adopts a configurational approach to examine how the complex interplay between interfirm adaptation, interfirm causal ambiguity, and organizational facilitating factors is associated with financial performance. Based on a sample of 219 B2B firms, configurations involving four types of interfirm adaptation and interfirm causal ambiguity are found to be linked to either high or not-high financial performance. Drawing from this, the study proposes a typology of interfirm adaptation for B2B firms, providing guidance on effective adaptation. Four types of B2B actors are identified based on their adaptation-related behaviors: effective adapters, relationship-specific adapters, ineffective adapters, and over-designed adapters. The findings also highlight that organizational learning and innovativeness are crucial in enhancing the effectiveness of interfirm adaptation.