Global Opportunities for Entrepreneurial Growth: Coopetition and Knowledge Dynamics within and across Firms

Cover of Global Opportunities for Entrepreneurial Growth: Coopetition and Knowledge Dynamics within and across Firms

Synopsis

Table of contents

(27 chapters)

Prelims

Pages i-xix
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Introduction

Pages 1-7
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Section A Coopetition, Entrepreneurial Internationalization, and Busines Development

Abstract

As proposed by Brandenburger and Nalebuff (1996), the concept of coopetition which highlights the coexistence of both collaborative and competitive forces in interorganizational settings aims to provide a new way of thinking for accelerating the innovation process and generating greater value. However, despite such recognitions, our understanding about how coopetition can help facilitate the innovation process in small and medium enterprises is rather limited. This should warrant a separate stream of research on this issue. Drawing on the concept of effectuation, we will explore the coopetitive innovation process in entrepreneurial firms. Sarasvathy (2001) proposed five principles embedded in the effectuation decision-making process of entrepreneurship. This process starts with a given set of means and controllable goals, followed by interactions with other stakeholders until they are all committed. The final stage leads to the creation of new products and services. The first two stages, means and goals, are the preparation stage in which an entrepreneurial firm distinguishes itself from large established corporations and establishes a base to leverage its contingency according to existing means and acceptable losses. After that, the effectuation process enters into the interaction and commitment stage during which the firm seeks relationships with stakeholders. We argue that the coopetitive forces can appear in the interaction and commitment stages to enlarge and capture value for the entrepreneurial firm involved.

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Abstract

Prior research into multinational enterprises’ (MNEs) entrepreneurial initiatives has drawn from various theoretical bases, including entrepreneurial cognition, knowledge-based view, and management control theory. Empirical studies and cases have consistently pointed to the temporal dimension, highlighting the dynamic elements of learning, capability development and evolution, and consequences of conflict. By incorporating theory on time use into the analysis, we develop a new theoretical insight regarding the temporal dimension of MNE entrepreneurial initiatives. Our analysis offers a basis for a more explicit focus on time use in studies of entrepreneurial initiatives in MNEs than has been offered to date. Implications for research and practice are discussed.

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Abstract

Creative industries (CIs) constitute the most important area in the contemporary global, knowledge-based economy. These enterprises, which operate in creative sectors, represent the most innovative businesses. Such sectors generate both growth and employment. CIs were defined as the activities that have their origin in individual creativity, skill, and talent as well as open the potential for wealth and job creation by generating and taking advantage of intellectual property. The problems and challenges in CI management are solved because of the accumulated resources of knowledge and the capacity for their effective implementation. Such processes rely on a creatively talented man who takes advantage of unconventional thinking and acting patterns. However, studies covering CI functioning, from the perspective of management science and primarily the concept of knowledge management have, so far, remained few and fragmentary. In one of the author’s previous research, related to the sector of CIs, it was indicated that talents, competencies, and ideas for starting a business can bring these people together who were growing up and influenced by the same urban, academic, or artistic environments. Narrow social groups of friends or good acquaintances, who establish a creative knowledge-based organization, are mutually, strongly, and emotionally bonded. The crucial issue here is the impact exerted by motivating, communicating, or team work orientation on knowledge sharing processes. The results of the study were used to develop a business model totally oriented to knowledge used in CIs.

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Abstract

Entrepreneurial small- and medium-sized enterprises (SMEs) face ever increasing competition not only at the domestic level but also at the global level. While large-scale enterprises and multinational corporations often hog the limelight, research and studies reveal that SMEs form the core of the growth engine of most of the national economies and are critical to rebuilding the economy from an economic crisis. In fact, SMEs make a significant contribution to economic growth and continue to play a pivotal role as a catalyst for development to drive innovation, competitiveness, and future growth. However, due to their size and limited resources, most SMEs often struggle to keep on top of new development in capabilities and skills and encounter difficulties keeping their operational activities in balance. Therefore, it is inevitable that most governments have taken a keen interest in SMEs’ development by providing infrastructure and financial grants. As such, it is argued that resource-constraint SMEs need to preserve the focus and drive to survive and grow in today’s interconnected, interdependent world. SMEs need to be properly equipped with deep capabilities in transformational leadership, technicality, and entrepreneurship, and innovativeness required to go international more rapidly and profitably in today’s increasingly borderless world.

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Abstract

The chapter is structured as follows: in the first part, we provide the framework for the analysis of the formation of the born global firm, whereas the entrepreneurial, strategic, and network-based factors are conceptually linked and leading toward a global champion. The analytical model proposes the analysis of strategic choices as defining factors at the level of entrepreneurial behavior, firm strategy, and network. The case study methodology is provided in the second part of the chapter. The third part provides the empirical linkages of entrepreneurial, strategy based, and network factors’ manifestations and underpinnings in R&D intensive entrepreneurial born global firms. These are followed by discussion and conclusions enclosing empirically grounded framework that explains the emergence of R&D intensive entrepreneurial-hidden champions from the perspective of entrepreneurial firm and network theories.

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Abstract

The main aim of this research is to provide initial evidences on the internationalization process of the Internet of Things (IoT) firms, seeking to understand which international model could better capture their behavior in the exploration of new business opportunities. A web-based questionnaire has been developed and sent to a sample of IoT managers in order to understand how these firms set up new business in a global landscape. Findings show that the well-known Uppsala model seems to be exceeded in explaining the internationalization process of the IoT firms. These firms seem to be born-global firms in nature with a gradual approach to inter­nationalize. In particular, IoT firms seek to get a leading position within the domestic market before exploring foreign markets. Finally, the IoT managers confirmed these first evidences, highlighting that IoT firms are born global in nature with a gradual approach in exploring and exploiting new business opportunities abroad.

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Abstract

This chapter identifies the coopetitive aspects of international brand licensing through the relationship between Burberry Group Plc and Sanyo Shokai. The well-documented relationship between the two firms is used to contribute to coopetition literature and brand licensing literature within an international context. This chapter answers how and why this initially mostly coopetitive relationship succeeded and what led to its eventual denouement. Both partners initially prospered, Burberry had its name efficiently spread across Japan, and Sanyo borrowed from the reputation established by Burberry’s brand name. After some time, Sanyo created brand extensions for the Japanese market which were more affordable than Burberry’s products. They were a big success, further popularizing the Burberry brand across Japan and handsomely benefiting both firms. Burberry grew concerned about inconsistent brand image. The ubiquity of the extension was diluting the luxury parent brand. Burberry thus prematurely ended the licensing agreement with Sanyo. The findings of this study offer valuable insights to firms either intending to internationalize through licensing or intending to be a long-term licensee.

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Section B Knowledge Flows and Coopetitive Entrepreneurship for Organizational Sustainability

Knowledge Dynamics and Flows for Organizational Performance

Abstract

The chapter reflects on the coopetition concept and its role in combining cooperation and competition with a paradoxical situation between them. Likewise, it illustrates how coopetition gains a mutual advantage for the collaborative relationship of value creation, new product development (NPD), knowledge acquisition, and organizational performance in inter-organizations. However, it is necessary to build a friendly approach and proper management to ensure effective coopetition. The rationale, though, is the following: coopetition defines innovation performance; coopetition represents knowledge recombination in both inter-organizational and intra-organizational conditions; the coopetition outcomes state knowledge creation and firm’s innovation that lead to new ideas and new variations improving organizational relationships. At the same time, it is highlighted how the customer relationships are aligned in the enterprises and how knowledge transfer in different alliances influence dynamic and complex character exploring tacit and explicit knowledge. As far as knowledge is concerned in an organization, it illustrates the contribution of two essential elements in coopetition value creation, i.e., knowledge management and intellectual capital. By critically evaluating the following, we encourage coopetition and innovation to recognize knowledge and increase the performance of inter-organizational units. Moreover, the primary way for knowledge assessment in organizations is by collaboration with the competitors. Concluding, our theoretical approach acknowledges that knowledge sharing enables more efficient innovation by linking R&D efforts.

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Abstract

This chapter develops an on-going theory of coopetition management in knowledge-based industries. Coopetition is a strategy which combines simultaneously competitive and collaborative relationships. This combination permits companies to benefit from both the advantages of the competition and the advantage of collaboration. However, this strategy is also risky in case of unintended spillovers and technology plunders. Companies have to manage the coopetitive risk by implementing three principles of coopetition management: the separation principle, the integration principle, and the co-management principle.

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Abstract

Among world’s economies, the circular economy (CE) has become popular especially in the European Union and China, which opens several opportunities for sustainability leaders to gain a first-mover advantage and, consequently, to pursue organizational sustainability and growth. In spite of public policy support, since CE often requires entrepreneurial innovation among complex networks of companies, most companies are still learning how to manage knowledge dynamics at the inter-organization level. The chapter starts by defining the key characteristics of CE and identifying the peculiarities in terms of inter-firm cooperative and competitive relations, which help in delineating contributions from the green supply chain literature. The second section shows – through the discussion of term maps – how multiple- and inter-disciplinary streams of research are increasingly linked by hard (i.e., information communication technologies based) and soft (i.e., relational and organizational) aspects of knowledge management. The third section provides a discussion on key hard and soft factors that characterize four knowledge dynamics, i.e., knowledge creation, knowledge storage, knowledge transfer, and knowledge sharing that can improve the adoption and integration of circular processes within inter-organizational coopetitive strategies. Particular attention is here given to the cross-analysis of outcomes from theoretical papers, case studies, and quantitative empirical researches that contribute to shaping relations between internal and external factors that might play as predictors of a successful implementation of CE principles. Finally, the last section concludes with recommendations for improving organizational and managerial capabilities to manage inter-firm knowledge dynamics while pursuing CE objectives in international business environments. Beside this guidance for practitioners, directions for further research are suggested for each pillar of the emerging conceptual model.

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Abstract

In this chapter, we empirically investigate an important question of “how does knowledge sharing and knowledge leakage impact the alliance performance in dyadic coopetitive alliance settings that involve small- and medium-sized enterprises (SMEs).” Taking the perspective of the focal SME to address this question, we posit that while knowledge sharing positively associates with alliance performance, inadvertent knowledge leakage is negatively related to performance. We further postulate that under the conditions of high knowledge leakage, the positive impacts of knowledge sharing on performance would be reduced. Our structural model results based on a survey of 186 SMEs in the high-tech and knowledge-intensive industries in Sweden show support for two of the hypothesized relationships. More specifically, the results show that knowledge sharing has a positive effect on alliance performance but knowledge leakage has an insignificant direct effect on performance. However, knowledge leakage plays a negative moderating role on the relationship between knowledge sharing and performance. We contribute by demonstrating the effects of knowledge sharing and leakage in under-researched but important dyadic one-to-one coopetitive alliances involving SMEs.

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Abstract

Following the current debate on the importance of external sources of knowledge as predictors of small- and medium-sized enterprises’ (SMEs) performance, this chapter aims to open the black box of the innovation process. Since it is still unclear how and what internal capabilities are involved in that process, this chapter demonstrates the relevant mediating role of knowledge integration mechanisms (KIMs) as facilitators of firms’ innovation. A sample containing 98 Italian SMEs operating in different industries is analyzed to test the proposed theoretical model through a regression analysis. The results suggest that KIMs operate as a full mediator in the relationship between the depth of external knowledge sources and opportunity exploitation. In conclusion, theoretical and managerial ­implications of this study are presented.

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Coopetitive Entrepreneurship Through Innovative and Technological Strategies

Abstract

This chapter examines firm strengths and weaknesses from the standpoint of intangible assets. These are compared within and across industry sectors in order to better understand who might be a potential collaborator (or competitor) in different contexts. Establishing the conceptual basis of a range of intangibles, including data, explicit knowledge, tacit knowledge, and intelligence, the chapter moves to metrics for assessing industry averages and individual firm capabilities. Finally, several sectors in healthcare are examined, specifically identifying what kinds of collaborators would best fit with a technology-driven start-up like Theranos.

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Abstract

Following the triple helix (TH) model and the way knowledge is transferred into the industry domain, this chapter aims to define features interface that should be implemented in order to facilitate the University–Industry (UI) relationship and thus encourage the spin-off creation.

In order to support this relationship, a new business model configuration of an entrepreneurial ecosystem is proposed, aiming at creating a sustainable environment, where business entities can grow. The field of the Governance of Entrepreneurial Ecosystems is also investigated in order to define a framework for launching, developing, and sustaining a company over time.

This chapter presents a case study developed within the University of Salento (Italy). It capitalizes results from three different research analyses, based on questionnaires and interviews with actors of the spin-off network (professors and researchers, graduating students, admin-tech staff of the Technology Transfer Office, spin-offs’ CEOs/Associates, and R&D managers of external companies) and on results coming from scientific publications and regional/national reports in the innovation context.

A research methodology based on semantic network analysis and sentiment analysis has been applied in order to identify which features an interface should implement in order to facilitate the UI relationship and encourage the spin-off creation.

To support the start-up overcoming the “death valley,” the creation of a link between the strategy used to transfer value to the market and the phase of innovation is proposed inside the business model configuration. Some aspects of a governance model of an entrepreneurial ecosystem were also presented in order to support the business evolution of a single business entity and assuring sustainability over time.

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Abstract

Research focuses on factors that affect nascent entrepreneurs’ decision to create a start-up but research in the field of open data contests has not been investigated yet. So, there are no conclusions about the enhancement of entrepreneurship through the hosting of contests. This chapter aims to examine the factors that affect the decision of establishing a start-up by developers who have participated in open data contests. Interviews were conducted with developers who participated in hackathons and they aimed to launch their apps and establish start-ups. The obstacles were the limited support, marketing activities, and the lack of free data.

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Abstract

While the trade sector has long been the backbone of growth followed by real estate development in Dubai, the impact of reduced oil revenues in the Gulf Cooperation Council (GCC) has affected Dubai. GCC countries have identified innovation and transitioning to a knowledge-based economy as critical components of sustainable growth in the post-oil world. The purpose of this chapter is twofold: (1) to examine UAE’s competitiveness relative to four economies for which we can draw meaningful conclusions (Qatar, Singapore, Norway, and Switzerland) and (2) to integrate macro- and micro-level findings in an actionable framework. Using the composite Knowledge Economy Index (KEI) developed by the World Bank (2008, 2012), we conclude that UAE should prioritize three key areas to ­transition to a knowledge-based economy: the regulatory regime, innovation, and human capital. These findings are consistent with a recent study by the UAE Department of Economic Development/INSEAD, which highlights two areas that need addressing: “Creation” (knowledge creation) and “Anchoring” (institutional environment for innovation). We integrate these macro-level findings with research at the innovation ecosystem level (and particularly survey-based research completed by Wamda Research Lab) to propose a comprehensive action framework across all ecosystem stakeholders (i.e., government, entrepreneurs, academia, support ecosystem, and corporates). The action matrix allows individual stakeholders to drive corresponding actions and prioritize across short- and long-term initiatives.

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This study investigates how education, scientific output, and the internet complement mobile phone penetration to affect technology commodity exports in sub-Saharan Africa for the period 2000–2012. The empirical evidence is based on a generalized method of moments. The following main findings are established. The internet complements the mobile phone to boost technology goods exports and technology service exports. In addition, positive marginal effects are apparent in the roles of educational quality and scientific output on technology goods exports and technology service exports, respectively, while negative marginal impacts are apparent in the roles of scientific output and educational quality on technology goods exports and technology service exports, respectively. Practical and theoretical implications are discussed.

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The chapter introduces digital food hubs as disruptive business models in the agri-food system shifting away from the unsustainable industrialized and conventional food sector and moving toward a re-localized food and farming pattern. They are new digital business models developed to support small and mid-size farms with a value focus, forming new ways to leverage the technology as a facilitator for coopetitive organizational forms. Indeed, they respond to a competitive strategy constituted by a “value strategy” oriented to the production and distribution of “shared value.” Second, they are based on an “organizational strategy” that shifts from individual competition to “coopetition” through the development of local “strategic networks” among small size producers. Central to the development of these business models is the digital disruption that has offered the space for the creation of unconventional exchange and transaction mechanisms distinguishing them from the already existing traditional ways of work. The agri-food markets exhibit structural holes that impede small farms from connecting with local consumers. This is due to a lack of material infrastructures and organizational forms on behalf of small farms that cannot reach the consumers, as well as the concentration of power in the hands of a restricted numbers of distributors, which causes the unequal redistribution of the economic value and impedes small farms accessing the food market. The advent of the digital technology is reshaping the market relationship by allowing out centralized intermediaries and creating new bridges between producers and consumers.

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Section C Politics, Ecology, and Social Scopes on Coopetition and Growth

Abstract

Several parameters set economic growth, and one of them is innovation. Thus, it is vital to realize the proper motives for a firm to innovate. The key actors in innovation systems – such as firms, research institutions, academia, and standards developing communities – affect knowledge ­creation, contribute to its diffusion and use, and set the global innovation capacity. Additionally, the market-driven and the worldwide open paradigm may aid to ensure stable and reliable integration, interactive abilities, and active collaborations to drive international innovation and its ­concepts forward. The World Trade Organization (WTO) is an international organization that assembles principles to produce such standards as mentioned above, so as to ensure a prosperous future globally. Global cooperation, openness, interaction, and the generation of motives for innovation are some of the principles that WTO embraces, and all of these are to benefit humanity from free market and trade growth, leading to triumph through innovation. Overall, this chapter examines the significant role of WTO in trade policy uncertainty and how innovation is ensured and stimulated by WTO regarding the specific case of the Chinese market.

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Abstract

The impact of environmental sustainability and knowledge dynamics on entrepreneurial growth and internationalization could do with added research focus. However, the rising importance of corporate sustainability and social responsibility in global business and entrepreneurship increasingly requires that these interdependencies be assessed. We assess these dynamics empirically through both quantitative and qualitative analyses. With the former, we employ a cross-sectional sample of Finnish small- and medium-sized enterprises (SMEs) to illustrate the impact of learning orientation and environmental sustainability on their growth and internationalization. Specifically, we find that their impacts on entrepreneurial growth depend on the stage of their internationalization: Learning orientation predicts first foreign market entry among the enterprises, while environmental orientation predicts the subsequent performance among internationally operating enterprises. In addition, we find no moderation or mediation effects between learning orientation and sustainability, suggesting that their impacts are distinct from each other. We conclude by discussing these results and their implications on international entrepreneurial growth, and knowledge and sustainability dynamics in the entrepreneurial context.

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The Pacific Island countries are culturally diverse, politically challenging, extremely vulnerable to climate change and natural disaster impacts, and financially heavily dependent on aid flows. This chapter examines barriers and opportunities for Green growth (GG) to flourish in a country with a practically non-existent real economy and which is currently under the threat of disappearance under water. It draws on a visiting experience and lessons from the literature and tries to investigate the role of innovation and entrepreneurship as poles of re-birth and local creativity. More particularly, I here discuss why a least developed country such as Kiribati might be the perfect location for dynamics of GG to get born and how, Kiribati, a country under threat and fear, can be transformed into a lighthouse of entrepreneurship which can give boost to the implementation of one of the most advanced energy technologies in the world. I also discuss how, ultimately, a “least developed economy” can secure scientific lessons, which are highly significant for the international knowledge society.

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This chapter will introduce circular economy and cradle to cradle models of sustainable production. It will reflect on the key blockages to a meaningful sustainable production and how these could be overcome, particularly in the context of business education. The case study of the course for bachelor’s students within International Business Management Studies (IBMS) program at three vocational schools, and at University College in The Netherlands will be discussed. Student teams from these schools were given an assignment to make a business plan for a selected sponsor company in order to advise them how to make a transition from a linear to circular economy model. These case studies will illustrate the opportunities as well as potential pitfalls of the closed-loop production models. The results of case studies’ analysis show that there was a mismatch between expectations of the sponsor companies and those of students on the one hand and a mismatch between theory and practice on the other hand. Helpful directions for future research and teaching practice are outlined.

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Conclusion

Pages 523-528
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Index

Pages 541-551
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Cover of Global Opportunities for Entrepreneurial Growth: Coopetition and Knowledge Dynamics within and across Firms
DOI
10.1108/9781787145016
Publication date
2017-12-14
Book series
Advanced Strategies in Entrepreneurship, Education and Ecology
Editors
Series copyright holder
Emerald Publishing Limited
ISBN
978-1-78714-502-3