Coopetition and micro, small and medium enterprises performance

Abstract

This study investigates coopetition in addressing the interactions among micro, small and medium enterprises. The fundamental cause of coopetition was examined and the degree to which it affects the enterprise performance as evidenced from micro, small and medium enterprises (MSMEs) was evaluated. Premised on existing literature, intensity of cooperation, intensity of competition and intensity of equality were used as the dimensions of coopetition. The descriptive survey research method was applied. Structured questionnaires were administered to 1876 MSMEs in Nigeria. The structural equation model was used in analyzing data to establish the extent of influence of coopetition on MSMEs performance. It was established that coopetition affects asses to technology and market share. It was also revealed that the intensity of competition affects coopetition more and access to technology was seen as the most significant reason MSMEs are involved in coopetition. The findings of the study also show that MSMEs mostly take part in coopetition in order to ripe the benefits of technological advancement. The study is limited in scope to micro, small and medium enterprises (MSMEs). Future studies should investigate the effect of coopetition on specific industries. MSMEs should engage more in coopetition in order to achieve their objectives and Entrepreneurs should design and manage competitive relationships with their key competitors in order not to lose their core competence. The study pays attention to the fundamental cause of coopetition and establishing factors that influence cooperation which have direct effect on competition. This study also adds intensity of equality as a measurement of coopetition based on literatures reviewed as previous empirical studies did not include it.