Towards a theory of interfirm adaptation in business relationships

Abstract

This paper aims at developing the theory of interfirm adaptation in business relationships. The paper adds to earlier research by developing a theoretical structure for the analysis of interfirm adaptation. While it is well established in literature that companies adapt their product and service offerings, as well as their processes of production and delivery to account for the evolving needs of customers or suppliers, our understanding of why firms can pursue adaptations in business relationships and how adaptations happen or fail to materialize remains an enduring puzzle. This paper contributes towards a theory of interfirm adaptation in business relationships by presenting a unifying conceptual framework that connects 1) the bases of interfirm adaptation, and 2) the processes of interfirm adaptation. This unifying conceptual framework gives researchers a coherent set of analytical tools to assume, champion, and experiment research on interfirm adaptation in business relationships.