The objective of the study is to uncover the nature and characteristics of collaborative advantage from a focal firm's perspective. Collaborative advantage is defined as strategic benefits gained over competitors in the marketplace through supply chain partnering, and it relates to the desired synergistic outcome of collaborative activity that could not have been achieved by any firm acting alone. The research conceptualizes collaborative advantage as the five dimensions: process efficiency, offering flexibility, business synergy, quality, and innovation. Reliable and valid instruments were developed through rigorous empirical analysis including structured interviews, Q-sort, and a large-scale study. Data were collected through a Web survey of U.S. manufacturing firms in various industries. The statistical methods used include structural equation modeling (i.e., LISREL). The construct definition and measures in this study have provided a rich and structured understanding of collaborative advantage in a supply network.