Inter-organizational cooperation was investigated as one factor associated with the development of the University of New Mexico from an undergraduate teaching institution toward becoming a nationally-ranked graduate research university. A longitudinal, ethnohistorical study was undertaken for the 1967-1978 period. The qualitative research methodology involved an extensive review of institutional documents and informal interviews with key university administrators. Attention was directed to the creation of the Office of the Vice President for Research as a means of promoting and supporting campus research. The findings suggest that inter-organizational cooperation enabled institutional leaders to adapt to shifts in the external research support environment and the increased level of competition for research funds. The level of inter-organizational cooperation increased as the level of resource uncertainty and competition increased, moving from mutual adjustment to alliance and to corporate forms of relationships. This cooperation decreased as those conditions were ameliorated. Theoretical propositions concerning inter-organizational cooperation in developing research universities are identified. The development of grounded theory in general is also briefly addressed. (Author/SW)