The Formation of New Inter-firm Relationships: A UK Offshore Wind Sector analysis

Purpose: The focus of this paper is to understand the initial formation of inter-firm relationship forming a long-term relationship and innovation in offshore-wind sector. Design/methodology/approach: Longitudinal case studies of three pairs of new inter-firm relationships based on interviews and other archival data are analysed. Findings: Not all new inter-firm relationships progressed to expansion stage, largely owing to incompatibility and uncertainty. In some cases incompatibility could be rectified by trust and sharing of information. High trust is required to move the relationship from awareness to exploration stage. Investment in R&D is seen as a lever for trust which helps move the relationship from exploration to expansion. Innovation complementarity is the key in the offshore wind (OSW) sector. Practical implications: Provide insights into how new inter-firm relationships in OSW sector could fail or be built up. High trust at the beginning helps to lower risk and encourages further investment.