– The downstream oil marketing companies (OMCs) have an opportunity to compensate their huge under-recovery by increasing non-fuel revenues through strategic planning for collaboration with organized companies (OCs) of auto-servicing sector, who are experiencing a surge in the demand for auto-servicing. The purpose of this paper is to explore the business need for strategic collaboration and empirically validate the building mechanism for collaborative capacities between the two sectors (OMCs and OCs).
– The paper is designed to explore the implementation of collaboration using needs analysis, exploratory factor analysis and structural equation modelling process for building collaborative capacities between the two sectors.
– Although alignment is a necessary condition before allowing for a valid collaboration between the two sectors, the external alignment process is highly significant for implementing collaboration unlike the internal alignment process.
– Methodological limitations include the use of convenience sampling and anonymous survey-based research.
– Selecting the “right” identified factors for collaboration is unquestionably one of the most important topics in the collaboration literature, which holds vast practical implications.
– This study provides practical and theoretical insights for implementing collaboration based on empirical results.
