Enhancing SME Competitiveness Through Coopetition Networks: A Service-Dominant Logic Approach

Abstract

In the era of rapid globalization and digital transformation, small and medium-sized enterprises (SMEs) in the manufacturing sector encounter significant challenges in scaling operations, enhancing operational efficiency, and fostering innovation. This study focuses on manufacturing SMEs, where coopetition– a strategic blend of competition and cooperation– addresses these challenges. Despite its potential to drive innovation and value creation, coopetition networks often struggle to succeed, particularly under the pressures of advancing technology and the need for digital collaboration. To address these issues, this research develops a comprehensive framework that integrates Service-Dominant (S-D) Logic with technology-enabled coopetition networks. Utilizing the Design Science methodology, the study presents a framework that underscores the crucial role of technology in fostering value co-creation within SME networks. This framework is designed to enable sustainable and effective engagement in coopetition, significantly mitigating the risk of network failure by aligning technological innovation with coopetition principles. The proposed framework was evaluated through a targeted survey of managers from SMEs in the Portuguese stone manufacturing sector. The survey results con firmed the practical applicability and potential to promote robust and sustainable coopetition strategies. By integrating theoretical insights with practical applications, this research offers a roadmap for SMEs to effectively manage the complexities of coopetition within the digital supply chain environment.