The effects of cooperative activities with competitors on the performances of innovation and management

Abstract

This study intends to verify whether the coopetition strategies, cooperation with competitors, affect business performances. More specifically, in order to scrutinize the cooperation as a part of innovation mechanism, this study analyzed mediating effect of product and process innovation between the cooperative activities and management performance. In this context, we applied the structural equation analysis by integrating regression model and logistic regression model. The former verified cooperation's effect on management performance, while the latter studied cooperation's effect on innovation performance. The results of analyses showed that the cooperation with competitors, comparing with other types of cooperation, enhanced the innovation performance such as process innovation. Additionally, the analysis demonstrated that such cooperation positively related to the management performance. These results indicate the significance of strategic openness even to the competitors as business environment changes dramatically. Such cooperation would provide the windows of opportunity for sustainable growth through the field-based innovation.