With the advent of the resource-based and dynamic capabilities views of the firm, researchers of collaborative relationships have raised the question as to whether superior management of such relationships does indeed explain observed differences in collaborative performance of individual firms. While most research to-date has concentrated on antecedents and development of such management capabilities, in this chapter we propose a comprehensive construct aimed at capturing what constitutes collaborative capability. Results of an exploratory field study of vertical relationships in the software service sector suggest that collaborative capability consists of structural, cognitive, and affective dimensions. Based on our findings, we believe that the three dimensions of collaborative capability act as complements rather than substitutes, and that superior collaborative performance depends on a proper balance of the three dimensions.

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