Coopetition and Non-Profit Performance in War-Torn Region: Role of Outside Knowledge and Innovative Climate

Abstract

The inconsistent findings on the association between non-profit coopetition and performance are complicated and contingent on essential factors. However, our current understanding of the circumstances under which non-profit coopetition matters to performance is limited. We take a novel context to address this question and build on the combined literature from the emerging non-profit coopetition literature. This study conceptualises and tests the impact of coopetition (simultaneous cooperation and competition) on the organisational performance of non-profit organisations in a war-torn region. Notably, it investigates the simultaneous cooperation and competition in non-profits' social and financial performance via outside knowledge and innovative climate. An in-person survey with 158 executives and board members was conducted in Baghdad Governorate, Iraq. The survey adopted reliable and valid scales to measure the variables. Structural equation modelling was applied to test the mediation model. The proposed sequential mediating model has a good model fit with all four hypotheses statistically significant. Non-profit engagement in coopetition positively affects organisation performance via mediators: use of outside knowledge and innovative climate. Cooperation with competitors helps non-profits to effectively use the outside knowledge that forms an innovative climate at the organisational level. Additionally, the use of outside knowledge has a direct effect on performance. Non-profits should integrate outside and internal knowledge to generate sustainable financial and social performance opportunities, especially in turbulent or war-torn regions. Moreover, context is imperative for non-profit leaders to identify themselves and seek inter-organisational relationships. The study also provides theoretical and practical implications that help non-profit leaders innovate and increase organisational performance.