Abstract
We adopt Hegel's dialectical approach to explain the paradox of why firms engage in competition and cooperation in turbulent environments. While previous researchers have provided reasons why firms sometimes engage in cooperative strategies with competitors, the unique but conflicting scenario of simultaneous competitive and cooperative behaviour of a firm with the same rival has not so far been examined from a non–positivistic theoretical approach. By utilising insights from the principles of expression and differentiation in the Hegelian dialectic, we are able to offer an explanation of the paradox and establish its linkages with resource endowments, organisational legitimacy, and mimetic isomorphism of firms - concepts that are already well established in mainstream strategy and organisational theory literatures.
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