Purpose: The purpose of this study is to understand how inter-organizational relationships can contribute to innovation in service firms, by identifying practices used in a given alliance or dyad. Originality/value: Literature development on inter-organizational relationships and innovation confirms that this debate has become relevant in management studies. However, given the variety of drivers in this process, we identified the need for an in-depth understanding of the role of inter-organizational relations in innovation, a gap that this study sought to fill. Much of the knowledge on innovation management stems from the understanding of manufacturing industries, requiring a greater understanding of the management process, strategy and practices in the service industry. Based on this, this study offers theoretical and managerial contributions. Design/methodology/approach: We carried out a single case study, through an exploratory qualitative approach, with a focus on a strategic alliance between a startup and a traditional bank in the Brazilian financial industry. Findings: Motivations for engaging in an alliance, selection of partners, practices adopted for sharing complementary resources, including knowledge, collaboration and learning were identified in the case under analysis as factors that favored both the creation of an environment of innovation and the innovation results for both companies.
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