Performance implications of cross-functional coopetition in new product development: the mediating role of organizational learning

Abstract

Cross-functional coopetition, the simultaneous occurrence of cooperation and competition across firm functions, has been shown to be vital for firm performance. However, the literature has lacked insight into how competitive advantage emerges under such conditions, and which contingencies affect the coopetition-performance relationship. In the context of new product development, this study (a) assesses whether organizational learning translates coopetition among functional units into firm performance, and (b) investigates the moderating role of power sharing. Based on survey data from 331 German companies in various industries, our findings confirm that organizational learning mediates the association between cross-functional coopetition and firm performance. In addition, the results show that power sharing moderates the relationship between cross-functional coopetition and organizational learning. This study extends the limited literature on cross-functional coopetition, and contributes to the current debate on whether intra-firm competition constrains or promotes learning in new product development.