In management, the relational view by
Jeffrey H. Dyer and
Harbir Singh is a theory for considering networks and dyads of firms as the unit of analysis to explain relational rents, i.e., superior individual firm performance generated within that network/dyad.
[Dyer, J.H., Singh, H. (1998): The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, Vol. 23, pp. 660–679.] This view has later been extended by Lavie (2006).
Comparison to other theories
The relational view supplements existing views. While the
industry structure view explains superior returns with a firm's membership in an industry with specific structural characteristics, and the
resource-based view
The resource-based view (RBV), often referred to as the "resource-based view of the firm", is a managerial framework used to determine the strategic resources a firm can exploit to achieve sustainable competitive advantage.
Jay Barney's 1991 artic ...
explains superior returns with firm heterogeneity,
[Barney, J.B. (1991): Firm resources and sustained competitive advantage. Journal of Management, Vol. 17, pp. 99-120.] the relational view argues that idiosyncratic interfirm linkages are a source of relational rents.
Relational rents
Dyer and Singh define a relational rent as "a supernormal profit jointly generated in an exchange relationship that cannot be generated by either firm in isolation and can only be created through the joint idiosyncratic contributions of the specific alliance partners".
The achievement of rents is subject to relational risk.
Later research suggested companies adopt a relational strategic orientation and design
strategies to generate and extract relational rents.
Sources of relational rents
Dyer and Singh propose four sources of relational rents:
#relation-specific assets,
#knowledge-sharing routines,
#complementary resources/capabilities, and
#effective governance.
References
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Business terms
Strategic management
Supply chain management
Management theory