Locked-In Resources: Essential Ingredient for Coopetitive Relationship Stability

Abstract

This paper describes an underexplored process in coopetition research and contributes to the understanding of coopetition and its relationship with innovation performance from a resource based perspective. We conducted a review of three literatures and used examples of current and past coopetitive relationships amongst companies to develop this conceptual paper’s six propositions and a conceptual model. This paper argues that locked-in resources lead to higher coopetitive relationship stability, which in turn leads to more diverse and more radical innovations. It also explains the moderating effects of the industry’s competitive intensity and the industry’s age, two external variables often neglected in the coopetition literature. This paper contributes considerably and in a practical manner to managers as it draws their attention to the importance of investing locked-in resources and ensuring the relationship stability with their coopetitors to achieve the desired outcome.