Under competitive environments, supply chain enterprises seek to upstream and downstream firms to collaborate and co-create additional values. This study seeks to identify the process and the mechanism of value co-creation and to realise relational value. From a sample of 110 supplier and client relationships, we empirically examine how the value co-creation process works. Our model identifies bilateral idiosyncratic investment and resource interdependence as two important steps in the value co-creation process as well as verifies the effects of value co-creation on partnership quality. The implications and limitations of the research are presented, and suggestions for future research on inter-firm value co-creation research are provided.

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