Abstract

During the last few years, large-scale enterprises that engage in commercial cultivation of edible mushrooms have been growing at a very fast pace, bringing about new changes to the industrial structure of the edible mushroom industry. Co-existence of large-scale enterprises and small-scale farmers has become the long-term status quo of the edible mushroom industry. How to promote proportional development for these two important industrial bodies has become a pressing issue for the edible mushroom industry in Shandong Province. This paper studies Co-opetition in the edible mushroom industry in Shandong Province, in regard to aspects and effect on industrial competition pattern, motives, benefits, potential challenges and evolution of co-opetition. This paper concludes that by carrying out price insurance on edible mushrooms, developing intermediary organizations and reinforcing government support, co-opetition between the two will become more efficient, which in turn, will promote the evolution to the mode of “balanced co-opetition” and optimize the organization of the edible mushroom industry.

Highlights

  • Competition and cooperation has long been two independent fields of study, until Brandenburger and Nalebuff published the book Co-opetition

  • This paper studies Co-opetition in the edible mushroom industry in Shandong Province, in regard to aspects and effect on industrial competition pattern, motives, benefits, potential challenges and evolution of co-opetition

  • Studies on co-opetition have focused on the following segments: the definition and formation of co-opetition (Bengtsson and Kock, 1999; Ge, 2006; Huang, 2009; Sun et al, 2009), Classification of co-opetition (Bengtsson and Kock, 2000; Luo, 2005; Yang et al, 2009), Extent of co-opetition

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Summary

Introduction

Competition and cooperation has long been two independent fields of study, until Brandenburger and Nalebuff published the book Co-opetition. According to statistics from China Association of Edible Mushrooms, the number of large-scale enterprises in Shandong province has increased from around 20 in 2010 to 120 in 2013, with an annual growth rate of 81.71%. It can be concluded that the co-existence of enterprises and farmers has been and will be the long-term status quo of the edible mushroom industry in China. Under this status, the development of enterprises has brought fierce competition to the industry, threatening the survival of farmers. Synergistic effect, maximize profit and promote a healthy development of the edible mushroom industry

Effect of Co-Opetition on Industrial Competition Pattern
Resource Dependence Motive for Co-Opetition
Self-Interest Motive for Co-Opetition
Benefits of Cooperation
Benefits of Competition
Enterprises Could Be Exposed to Higher Uncertainty of Revenue
Management and Coordination Cost for Enterprises May Increase
Exit Cost May Become More Significant for Farmers
Partial Loss of Autonomy and Flexibility in Production for Farmers
Institutional Evolution of Co-Opetition
Findings
Optimization of Co-Opetition
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