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Purpose

The purpose of this paper is to use the New Zealand electricity industry as a case study to describe and understand the importance of collaborative relationships in coping with the changes faced by sectors of the industry over the last two decades.

Design/methodology/approach

A multi‐method qualitative approach is used to investigate the nature of industry relationships. Data were collected through two‐phase in‐depth interviews with key electricity employees. Secondary documents and archival records were used to support participant contributions.

Findings

The research finds that the majority of the collaborative relationships in the New Zealand electricity industry are “forced”. Nevertheless, and despite the preclusions of competition, relationships continue to support the strategic imperatives of firms and form an important component of firm‐level operation.

Originality/value

The study provides an understanding of collaboration within a new contextual setting – the New Zealand electricity industry. To the best of one's knowledge, no other study has attempted to assess the importance of collaboration on these industry players. The qualitative analysis undertaken made it possible to discover insights that would not have emerged from more commonly used quantitative methodologies.

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