A coopetition strategy – a study of inter‐firm dynamics between competition and cooperation

Abstract

Purpose

This paper contributes to extant knowledge by highlighting the complementarity‐based nature of coopetition strategy and its impact on collective strategies for value generation among actors.

Design/methodology/approach

Data collection draws on three cases encompassing three empirical contexts. A theoretical lens that enables a focus on contemporary inter‐organisational markets as organised behaviour systems manifesting network structures is adopted. Business strategy is operationalised as an exchange strategy with an emphasis on the exchange effectiveness achieved when some value is produced in cooperation with significant others.

Findings

The results show that managerial leadership and development of trust are the key success factors. Furthermore, this hybrid level of inter‐organisational relationship encompassing both competition and cooperation – coopetition – fosters collective intelligence through information and knowledge sharing.

Research limitations/implications

This paper concludes that, due to contemporary inter‐organisational exchange often being governed by the “visible hand” of the process of networking, today's environment is different from the environment firms used to encounter in the past. From a managerial perspective, the findings demonstrate the multifaceted nature of coopetition. Additional work on the impact of the concept of coopetition strategy on business practice is needed to add to this valuable endeavour.

Originality/value

The existing studies are primarily concerned with arm's‐length exchange (competition), a dynamic situation in which several actors are vying for scarce resources and/or producing and marketing similar products or services. Comparatively little research has focused on inter‐organisational dynamics, which entails both cooperation and competition. This paper demonstrates that participating in inter‐firm networks has become increasingly popular to enhance corporate entrepreneurship.

Citation

Osarenkhoe, A. (2010), "A coopetition strategy – a study of inter‐firm dynamics between competition and cooperation", Business Strategy Series, Vol. 11 No. 6, pp. 343-362. https://doi.org/10.1108/17515631011093052