Microfoundations of dynamic coopetition capabilities in firms from a microbrewery cluster

Abstract

PurposeThe objective of this research is to analyze the microfoundations of dynamic capabilities used by microbreweries in Porto Alegre (Brazil) in their coopetition strategies.Design/methodology/approachA case study with a qualitative approach was developed. Data were collected during interviews with owners of 11 microbreweries, via analysis of documents and nonparticipatory observation. The authors used the content analysis technique to infer knowledge.FindingsThe authors identified the microfoundations of dynamic coopetition capabilities including collective purchases, shared distribution expenses, shared production, education of consumers and other beer producers, group interaction and a business roundtable with entrepreneurs from the food and drink sector in the hospitality industry.Research limitations/implicationsThe authors developed a framework that considers the relationship between the microfoundations of dynamic capabilities and coopetition regarding the paradox between competition and cooperation. It is relevant to identify different actors’ movements and the potential outcomes of coopetitive strategies, which yield a competitive advantage for the cluster.Practical implicationsTogether, the microfoundations of dynamic capabilities contribute to the competitive advantage of the cluster.Originality/valueThe study highlights how small companies can jointly develop competitive advantage in a market dominated by a large company.