The building blocks of a relational capability - evidence from the banking industry

Cooperation is an increasingly important strategic option for both large and entrepreneurial firms. Firms need to assess the potential for successful cooperation. Among other factors the relational capability of partners needs to be identified. Prior research provides little insights into what makes a firm relationally capable or how to build this capability. The bank's franchising network case study provides evidence that a set of dedicated resources, governance mechanisms and knowledge management together make a relational capability. It has been source of above average earnings. The durability of cooperation requires relationships adjustments, which brings in flexibility and the underlying knowledge articulation and sharing.