The yin and yang nature of coopetition activities: non-linear effects and the moderating role of competitive intensity for internationalised firms

Abstract

PurposeThis paper draws upon the Yin and Yang concept of Chinese philosophy within a Western context to examine coopetition, namely, the interplay between cooperation and competition. Although coopetition activities should positively affect company performance, earlier research involving this relationship has typically been linear in nature and without moderating factors. Consequently, underpinned by resource-based theory and the relational view, the purpose of this investigation is to examine the non-linear (inverted U-shaped) link between coopetition and company performance under the moderating role of competitive intensity.Design/methodology/approachCollection of survey data involved a sample of 101 internationalising wine producers in New Zealand. Following a check of the statistical data for all major assessments of reliability and validity (together with common method variance), testing the research hypotheses and control paths took place through hierarchical regression. Furthermore, 20 semi-structured interviews helped explain the underlying mechanisms behind the quantitative results.FindingsCoopetition had a non-linear (inverted U-shaped) relationship with market performance. Surprisingly, competitive intensity yielded a negative moderation effect. The mixed methods results highlighted that firms must strike an effective balance between the paradoxical forces of cooperativeness and competitiveness across their product-market strategies.Originality/valueThis investigation contributes to the existing literature by developing and testing a conceptual framework examining the nature of the relationship between coopetition activities and market performance – using non-linear (inverted U-shaped) and moderating effects. It addresses a debate between two schools-of-thought concerning the impact of competitive intensity on the coopetition paradox. Additionally, this study helps to explain the coopetition construct through the Yin and Yang concept to highlight how the paradoxical forces of cooperativeness and competitiveness can create harmful outcomes for organisations if they do not manage them effectively (across domestic and international markets).