Culture and cross-functional coopetition: The interplay of organizational and national culture

Abstract

Abstract Scholars now recognize coopetition—the joint occurrence of cooperation and competition—between functional units as an important factor for a firm's learning and performance. We know little, however, about the drivers of cross-functional coopetition and in particular the roles of organizational culture and national culture. This study introduces cross-functional coopetition to the international management literature by illuminating the cultural antecedents of cross-functional coopetition. Specifically, we develop a cross-cultural model to analyze the influence of organizational and national culture on cross-functional coopetition. Drawing on a dataset of 646 companies from seven countries, we theoretically advance and empirically validate the influence of organizational culture and the moderating role of individualism and uncertainty avoidance on cross-functional coopetition. Organizational cultural dimensions directly enhance cross-functional coopetition. Furthermore, strong social values of individualism and uncertainty avoidance weaken the relationship between organizational culture and cross-functional coopetition. This study provides a novel perspective on how organizational culture can represent a strategic resource by illuminating the cultural mechanisms that influence coopetition within the firm.