When inter-firm relationship benefits mitigate power asymmetry

• This study builds on the thinking that inter-firm relationships are not ideal in terms of type of power used and symmetry of benefits distribution.
• A conceptual framework capturing relationships based on benefits and power type, offers a more realistic picture of inter-firm relationships.
• The framework offers a platform for managing inter-firm relationships and research on asymmetry of power and benefit distribution.

Literature generally advocates a utopian view of inter-firm relationship with equitable sharing of benefits and use of non-coercive influence strategies. However, some argue that such ideal relationships are not the norm, and power asymmetry and unequal distribution of benefits are a fact of ongoing inter-firm relationships. Despite this acknowledgment, there is still no framework that captures the nuances of inter-firm relationships in a comprehensive manner. This examination of such relationships contributes by proposing a conceptual framework using the power–benefit interaction. Furthermore, managerial and research implications of the proposed framework are also presented.