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Article
Publication date: 25 October 2011

Worku Tuffa Birru

The purpose of this paper is to explore the nature of cooperative relationships among competing firms by highlighting the purpose for, and the degree of cooperation in, different…

1099

Abstract

Purpose

The purpose of this paper is to explore the nature of cooperative relationships among competing firms by highlighting the purpose for, and the degree of cooperation in, different areas of joint activities. It also aims to examine factors fostering or hindering cooperation between competing firms.

Design/methodology/approach

The data used in this study were collected from September 2007 to February 2008 from 100 small and medium‐sized leather shoe manufacturing firms operating in Addis Ababa, Ethiopia.

Findings

The study result shows that most firms operate not in isolation, but in collaboration with other firms at the same stage of a value chain. They use cooperation with other firms primarily for accessing financial and tangible resources that are essential for plugging gaps in internal capabilities. While geographical proximity of firms facilitated by kinship and regional background of families foster cooperative relationship; negative perception to competition and lack of trust to partner firms are factors that hinder effective cooperative relationship among competing firms.

Practical implications

The study has important implications for governments and enterprise support organizations that seek to enhance competitiveness of small to medium‐sized enterprises (SMEs) through horizontal inter‐firm cooperation in Ethiopia, and elsewhere in sub‐Saharan Africa.

Originality/value

There are very few Ethiopian studies that have focused on horizontal inter‐firm cooperation. This paper, therefore, contributes to the body of knowledge by looking deep into the purpose for, and degree of cooperation, as well as factors fostering or constraining the emergence and sustainable continuation of alternative forms of cooperative relationship among competing SMEs in Ethiopia.

Details

Journal of Small Business and Enterprise Development, vol. 18 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 8 June 2012

Christian Felzensztein, Eli Gimmon and Claudio Aqueveque

This paper aims to focus on the perceived role of clusters in inter‐firm cooperation and social networks.

2161

Abstract

Purpose

This paper aims to focus on the perceived role of clusters in inter‐firm cooperation and social networks.

Design/methodology/approach

The study was carried out in a region of Latin America where limited research has been conducted in terms of inter‐firm relationships. Managers from three key natural resources‐based industries in Chile participated in the survey; one of these industries constituted a well‐defined cluster whereas the other two did not. The survey assessed managers' perceptions of the benefits and opportunities of inter‐firm cooperation in strategic marketing activities.

Findings

Results support the advantages of clusters. Managers of firms which are part of clustered industries tend to perceive more benefits and opportunities for inter‐firm co‐operation in marketing activities. Additionally, significant differences between clustered and non‐clustered industries in terms of their co‐operation behavior and objectives were found.

Research limitations/implications

The findings shed light on strategies for the enhancement of inter‐firm cooperation in marketing, of particular value for marketers in small‐and‐medium sized enterprises. The paper suggests establishing new clusters and promoting more regional clusters policies since clustering seems to provide better and positive inter‐firm interaction leading to cooperation.

Practical implications

There are lessons to be learned at national and regional levels for Latin American and emerging economies fostering new industry cluster policies.

Originality/value

Clustered firms and industries may result in more innovative marketing strategies at both local and international levels than non‐clustered firms. The authors encourage regional development bodies to foster more cooperation among firms and trade associations.

Details

Journal of Business & Industrial Marketing, vol. 27 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 10 October 2016

Zahid Yousaf and Abdul Majid

The purpose of this paper is to examine and develop a strategic performance model for small and medium enterprises linking with inter-firm networks, strategic alignment and…

Abstract

Purpose

The purpose of this paper is to examine and develop a strategic performance model for small and medium enterprises linking with inter-firm networks, strategic alignment and environmental dynamism.

Design/methodology/approach

Drawing on the live experiences of 757 respondents, including managing directors/owners and CEOs of different SMEs, the authors proposed a theoretical model representing how firms could attain strategic performance through inter-firm networks with a mediating role of strategic alignment.

Findings

The current study demonstrated that SMEs with strong inter-firm networks have the ability to align business activities with strategies and get earlier strategic performance. Strategic performance looks skeptical to ever gain acceptance until strategic alignment is adopted by small and medium enterprises. The findings of this study indicated that environmental dynamism strengthens the relationship between strategic alignment and strategic performance.

Originality/value

This research extended the understanding about the inter-firm networks, strategic alignment and environmental dynamism surrounding strategic performance. This study identified and empirically tested how the inter-firm networks impact on strategic performance through the mediating effect of strategic alignment.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 12 no. 4
Type: Research Article
ISSN: 2042-5961

Keywords

Article
Publication date: 2 October 2017

Dan Li and Jianjun Yang

Previous studies have illustrated that relational embeddedness is an important factor in alliance governance, but the homogeneity of it turned out to be an obstacle in the path of…

Abstract

Purpose

Previous studies have illustrated that relational embeddedness is an important factor in alliance governance, but the homogeneity of it turned out to be an obstacle in the path of alliance governance research. In light of this theoretical gap, the purpose of this study is to answering the following questions: Is relational embeddedness homogeneous? How does dual relational embeddedness and inter-firm trust influence alliance governance (especially the equity governance)?

Design/methodology/approach

Based on the perspective of transaction cost economics, there is traditional “transaction characteristics-prevention cost-alliance governance” framework from Williamson. In this study, we firstly introduce relational embeddedness and inter-firm trust into new model as moderating variable which based on the primary hypotheses in traditional framework; secondly, from the social network view, we analysis the dual nature of relational embeddedness and inter-firm trust. Thirdly, the authors refine the above moderating effect from different type of relational embeddedness and inter-firm trust. The authors conduct empirical analyses based on survey data of 328 Chinese manufacturing enterprises, and multiple regression analyses were used to test the above mentioned moderating effect.

Findings

The results show: ERE (economic relational embeddedness) and SRE (social relational embeddedness), respectively, lead to deterrence-based trust and knowledge-based trust. The ERE and deterrence-based trust strengthen the tendency towards hierarchical equity cooperation, while SRE and knowledge-based trust weaken the likelihood of equity cooperation choices being made.

Research limitations/implications

This study has made some encouraging progress, but there are still some problems and elements worthy of further study. First, from the view of independent variables, the authors did not include any transaction characteristics (such as asset co-specificity) in our integrated model. Secondly, and most importantly, the authors found some variables outside the analysis framework (such as whether involving R&D or core technology). After interaction with these variables, it is possible that the moderating role of relational embeddedness and trust, and especially the effects of SRE and KBT on equity cooperative governance, may be reversed.

Practical implications

Inter-firm cooperation is an important and special organization, which can joint interdependent resources to create value. This paper provides suggestions to Chinese enterprises which could help them realize the duality of relationship character and how to properly implement alliance governance. It helps enterprises to realize that relational embeddedness is not homogeneous and clarify the relationship between inter-firm trust and alliance governance. This research indicates the firm manager that effective alliance governance comes from appropriate relational embeddedness and inter-firm trust.

Originality/value

Overall, three contributions emerge: first, the authors construct a relational embeddedness and classical framework that overcomes the traditional deficiencies of being static and one-sided. Secondly, the forward research of dual embeddedness and trust improves the relational embeddedness theory and provides new ideas for subsequent research. Last but not least, the research clearly indicates that ambidextrous relational embeddedness leads to ambidextrous trust, which not only refines the existing research into trust mechanisms, but also clarifies the relationship between trust and alliance governance.

Details

Corporate Governance: The International Journal of Business in Society, vol. 17 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 7 September 2020

Ruijia Liu, Jianjun Yang and Feng Zhang

Prior studies have demonstrated the important role of coopetition in firms’ innovation. Based on the paradox perspective, this study aims to focus on technology transfer, the…

Abstract

Purpose

Prior studies have demonstrated the important role of coopetition in firms’ innovation. Based on the paradox perspective, this study aims to focus on technology transfer, the pre-innovation stage, to provide a supplementary understanding of the complementarity and contradictoriness of paradoxical coopetition, with the formal and informal governance mechanisms which are suitable with this understanding in coopetition.

Design/methodology/approach

This study conducted an original, multisource survey of 280 Chinese manufacturing firms. Hypotheses were tested through multiple regressions.

Findings

Coopetition has a positive impact on technology transfer between firms. Along with the increasing specificity of assets invested ex ante as a kind of formal governance mechanism, the relationship between coopetition and technology transfer becomes stronger. Meanwhile, inter-firm justice as an informal governance mechanism in the technology transfer process can be positively affected by coopetition between partners.

Originality/value

The study adds to the business-to-business coopetition literature on how to properly treat and use coopetition in technology transfer. Using the paradox perspective in the Chinese context, the findings emphasize the positive role of coopetition in the inter-firm technological exchange process, enriching the understanding of the complementary and contradictory features of paradoxical coopetition. To govern coopetitive relationships, the firms should also implement two fundamental governance mechanisms, that is, specialty asset and inter-firm justice.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 19 October 2010

Colm Fearon, Joan Ballantine and George Philip

This paper aims to examine the relationship between cooperation and inter‐organisational coordination in the supply chain. There is much literature debate over the nature of…

1639

Abstract

Purpose

This paper aims to examine the relationship between cooperation and inter‐organisational coordination in the supply chain. There is much literature debate over the nature of electronic trading enabled cooperation and coordination in the supply chain. The paper examines the major concepts associated with inter‐organisational cooperation in social network literature such as collaboration and partnership and how this is affected by changing forms of coordination (market and hierarchy) governance.

Design/methodology/approach

Seminal literatures about how electronic market and hierarchy coordination mechanisms have changed over time are examined. While some evidence from interviewing companies is used in conjunction with literature to inform discuss the workings of a matrix framework, the discussion remains essentially conceptual.

Findings

A conceptual cooperation and coordination matrix outlines four quadrant forms of cooperation relative to evolving electronic markets and hierarchy coordination contexts, namely; “collaboration”, “partnership”, “dominance” and “autonomous”. The matrix depicts and describes subtle differences in these forms of cooperation. Collaboration involves a low degree of vertical integration and a high number of trading partners transacting on short‐term contracts. Partnering involves a higher degree of inter‐firm linkage with fewer stable partners on a medium to long‐term basis. Dominance is characterised as a traditional form of hierarchical inter‐firm linkage with a high degree of vertical integration. The autonomous organisation specialises in the production and delivery of major super brands which in the case of information based products can be sold directly to the customer.

Originality/value

The contribution is a discussion analysis and new matrix framework depicting forms of cooperation relative to market and hierarchy coordination contexts in the supply chain. This is useful for understanding theoretical interplay between different forms of inter‐firm cooperation and complex supply chain inter‐dependencies that utilise information technology.

Details

Internet Research, vol. 20 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

Open Access
Article
Publication date: 18 May 2021

Anni Rajala and Annika Tidström

The purpose of this study is to increase understanding about vertical coopetition from the perspective of interrelated conflict episodes on multiple levels.

1417

Abstract

Purpose

The purpose of this study is to increase understanding about vertical coopetition from the perspective of interrelated conflict episodes on multiple levels.

Design/methodology/approach

The empirical part is based on a qualitative single case study of a coopetitive buyer-supplier relationship in the manufacturing sector.

Findings

Conflicts in vertical coopetition evolve from being merely functional and task-related to becoming dysfunctional and relationship-related, as the level of competition increases. The nature of conflict episodes influences the development of vertical coopetition, and therefore, the interrelatedness of conflict episodes is important to acknowledge.

Practical implications

Although a conflict is considered functional within a company, it may still be dysfunctional as far as the coopetitive relationship with the buyer or seller is concerned. Competition may trigger conflicts related to protecting own technology and knowledge, which may lead to termination of the cooperation, therefore coopetition should be managed in a way that balance sharing and protecting important knowledge to get advantages of coopetition.

Originality/value

The findings enhance prior research on vertical coopetition by offering new perspectives on causes of conflicts, their management, outcomes and types. The value of taking a multilevel approach lies in the ability to show how conflicts occur and influence other conflicts through the interrelatedness of conflict elements on different levels.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 3 June 2011

Mukhamad Najib and Akira Kiminami

The purpose of this paper is threefold: to understand the cooperation activities of small and medium enterprises (SMEs) in food processing industry clusters; to understand the…

3394

Abstract

Purpose

The purpose of this paper is threefold: to understand the cooperation activities of small and medium enterprises (SMEs) in food processing industry clusters; to understand the role of cooperation in improving innovation; and to understand the relationship between cooperation, innovation, and business performance of SMEs in food processing industry clusters in rural areas of Indonesia.

Design/methodology/approach

An empirical survey was conducted on SMEs in food processing industry clusters. Primary data collected in five SMEs clusters were analyzed by regression and correlation analyses using the path‐analytic approach. In this study, the following two hypotheses were examined: cooperation is positively related to innovation; and innovation of SMEs is positively related to business performance.

Findings

Using the path analytical method, this paper provides evidence that cooperation is significantly related to innovation of SMEs in food processing industry clusters. Moreover, business performance is a function of innovation, in which research results show that innovation significantly affects the business performance of SMEs.

Originality/value

This paper contributes to the extant literature by providing empirical evidence that the cooperation of SMEs with universities and other firms, which are activities more likely to occur within clusters, is positively associated with innovation. Such a contribution is very important for completing the explanation of innovation phenomena that exists in the clusters, since empirical research exploring the role of cooperation in the innovation of SMEs in food processing industry clusters is still rare.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 1 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 29 March 2011

K. Momaya

The purpose of this paper is to explore a cooperation‐driven stage in the traditional framework of country competitiveness development and also suggest an approach to address…

1223

Abstract

Purpose

The purpose of this paper is to explore a cooperation‐driven stage in the traditional framework of country competitiveness development and also suggest an approach to address pragmatic issues related to cooperation in the context, particularly, competitiveness evaluation and choice of partner country.

Design/methodology/approach

The objectives of the research were achieved by a research design that leveraged quantitative tools with strength of case study research. Quantitative data for benchmarking were obtained from a carefully selected Country Competitiveness Report. For identifying criteria of competitiveness for success of a country (aka critical success factors CSF), content analysis of strategic reports from competitive countries was employed.

Findings

Cooperative strategies and flagship firms emerged to be CSFs that can drive investment needed for innovation and technology development, the later stages in country competitiveness development framework. Evaluation of competitiveness can be quite difficult and resource‐intensive process, but can be improved with innovative mix of different approaches and tools. With quite consistent and effective results in one more international context and a new industry, the assets‐processes‐performance (APP) framework of competitiveness can provide a simple, yet valuable approach with flexibility to adapt across levels and contexts, a vital need.

Practical implications

Competitiveness leaders should review cooperation processes and performance. They should evolve strategies to leverage cooperation on relevant dimensions.

Originality/value

A key contribution of this paper is proposing a vital cooperation‐driven stage for country competitiveness and operationlizing it using three major frameworks of competitiveness in a practical and useful context of nanotechnology, when many countries are evolving their strategies for such industries. An approach is tested to simplify evaluation of competitiveness in a difficult context of emerging industries. It can help leadership take more informed critical decisions about competitiveness and assess their impact for enhancing desired impacts of the decisions. For the purpose, comparing three alternatives, the author extends the APP framework with strategy concept of CSF to enhance its flexibility, thus contributing to needs of effectiveness and simplicity of emerging country context.

Details

Competitiveness Review: An International Business Journal, vol. 21 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 4 October 2019

James M. Crick

Coopetition is the interplay between cooperation and competition, involving organisations sharing resources and capabilities with rival entities. Earlier work has suggested that…

1813

Abstract

Purpose

Coopetition is the interplay between cooperation and competition, involving organisations sharing resources and capabilities with rival entities. Earlier work has suggested that coopetition has a linear (positive) relationship with company performance, with scarce considerations towards whether this link could have a diminishing-returns effect. Thus, this paper aims to examine the non-linear (quadratic) relationships between coopetition and three performance outcomes. Using resource-based theory and the relational view, this study is designed to evaluate the dark side of coopetition, in terms of identifying situations when such activities can be harmful for company performance.

Design/methodology/approach

Survey data were collected from a sample of 101 vineyards and wineries in New Zealand. After purifying the measures through a series of multivariate statistical techniques, the research hypotheses and control paths were tested through hierarchical regression. Furthermore, the statistical data passed all major assessments of reliability and validity (including common method variance).

Findings

Coopetition was found to have non-linear (quadratic) relationships with customer satisfaction performance, market performance, and financial performance. These results indicate that while coopetition provides organisations with new resources, capabilities and opportunities, there are some dark sides of coopetition activities. With “too little” coopetition, firms might struggle to survive within their markets, with an insufficient volume of resources and capabilities. With “too much” coopetition, companies could experience increased tensions, potentially lose intellectual property and dilute their competitive advantages. Such negative outcomes could harm their performance in several capacities.

Practical implications

Firms should appreciate that coopetition is a competitive strategy. In other words, regardless of how much collaboration occurs, coopetition partners are still competing entities. It is recommended that organisations should strive to engage in an “optimal-level” of coopetition, as “too little” or “too much” of such strategies can be harmful for various types of company performance. To mitigate some of the dark sides of coopetition, businesses should attempt to use all the benefits of collaborating with competitors (i.e. accessing new resources, capabilities and opportunities), but at the same time, not become dependent on rivals’ assets.

Originality/value

This paper develops and tests a framework examining the non-linear (quadratic) linkages between coopetition and multiple assessments of company performance. It highlights the benefits and drawbacks of businesses sharing resources and capabilities with their competitors. Contrary to prior studies in the business-to-business marketing literature, the results signify that firms need to engage in an “optimal-level” of coopetition to minimise certain dark sides, such as reduced company performance. After providing some practitioner implications, this paper ends with a series of limitations and avenues for future research.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

1 – 10 of over 4000