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This study underlines the limitations of commonly used proxies to measure value creation in interfirm alliances and addresses these limitations in two ways. First, this study adopts a co-opetition-based approach in theoretically conceptualizing value creation in interfirm alliances as a three-dimensional construct and argues that in addition to “common benefit” and “private benefit cooperation” (generally known as “private benefits”), a third dimension, namely “private benefit competition” should also be considered as an integral dimension of value creation. Second, by analyzing data collected from 155 firms of five high-technology research-intensive sectors in India that engaged in 288 alliances characterized by varying degree of co-opetition, this study empirically validates the distinctiveness of these three dimensions and presents a 17-item multidimensional scale of value creation.
