Coopetition Strategy Research Articles

Supply Chain Integration Capability, Intra-Cluster Co-Opetition Strategy, and Breakthrough Innovation: The Moderating Effect of Environmental Turbulence

Under the frequent occurrence of external environmental risks and in the context of breakthrough innovations driving new quality productivity, this study explores the intrinsic mechanisms by which supply chain integration affects enterprise breakthrough innovation. Grounded in supply chain integration and breakthrough innovation theories, we used statistical methods to analyze data from a sample of 209 valid enterprises. The study systematically interprets these mechanisms from the perspective of competition and examines the moderating effect of external environmental turbulence on competitive strategy. The results demonstrate that supply chain integration capability significantly and positively influences breakthrough innovation, with vertical and horizontal competing strategies acting as mediators. Additionally, environmental turbulence positively moderates the relationship between supply chain integration capability and horizontal competing strategies. The results of the study are of great theoretical and practical significance in promoting the integration of enterprises’ supply chains and enhancing their sustainable innovation capabilities.

Enhancing customer satisfaction through IIoT-Enabled coopetition: Strategic insights and impacts

This research investigates the significant role of Industrial Internet of Things (IIoT) to enable Coopetition Network Practices (CNPs) in enhancing the performance of Small and Medium Enterprises (SMEs) within the context of global digital supply chains. Employing a quantitative approach, our study reveals that CNPs contribute to a noTable 51.0 % improvement in factors determining customer satisfaction. This underscores the strategic importance of blending competition with collaboration to refine production processes and align with consumer expectations. Additionally, the research presents a remarkable 69.1 % boost in operational consistency and reports substantial progress in manufacturing flexibility and the value-to-weight ratio, witnessing increases of 125.8 % and 33.2 %, respectively. These improvements are pivotal in optimizing production resources, which in turn, have led to a 29.3 % decrease in customer complaints and a 15.6 % rise in on-time delivery rates. Conversely, a slight decline in the consistency of the value-to-weight ratio was observed, pointing to potential areas for future research. The findings decisively show that CNPs offer concrete advantages by enhancing customer satisfaction determinants and operational efficiency in SMEs. The paper advocates for future studies to directly measure customer satisfaction and to formulate actionable guidelines for the effective implementation of coopetition strategies. This proposed research direction aims to provide solutions to the manufacturing sector's emerging challenges, thereby promoting competitive advantage and growth in the digital era.

Coopetition strategies in a two-stage, multi-agent supply chain under hybrid carbon trading mechanisms

ABSTRACT Managing a multi-agent supply chain within a hybrid carbon trading framework, which integrates Certified Emission Reductions (CERs) and Carbon Quota Trading (CQT), presents a significant challenge. This complexity is further amplified by the interplay of competition and cooperation among agents. Motivated by this, we develop a biform game-based cooperative mechanism for a two-stage supply chain that includes a high-emission manufacturer, a negative-emission manufacture and a downstream retailer. This mechanism is designed to encapsulate both the non-cooperative and cooperative game elements. The former features a product competition game among the manufacturers and retailer, setting the stage for the cooperative game without directly yielding equilibrium solutions. The latter involves a cost-sharing agreement for the CER project's initial investment, informed by various coalitional zero-sum games. Our analytical findings, corroborated by numerical simulations, reveal that the biform game coordination mechanism significantly enhances the volume of CERs traded and consumer surplus, compared to a non-cooperative scenario. It effectively aligns the collaborative efforts of all agents within the supply chain. This research contributes substantially to the literature on coordinating multi-stage, multi-agent supply chains, and the strategic deployment of emission reduction initiatives in supply chains. It also offers valuable managerial insights for the design of government regulations in carbon markets.

Coopetition, exploration and exploitation capabilities, and growth performance in digital healthcare ventures.

Studies focusing on coopetition and dynamic capabilities have expanded significantly over the past several decades. Coopetition strategy and dynamic capabilities are increasingly recognised as sources of sustained competitive advantage. The purpose of this paper is to provide a better understanding of the factors driving growth performance in digital healthcare ventures by examining the role of coopetition, exploration and exploitation capabilities, and environmental uncertainty. While numerous studies have examined the competitive advantage of coopetition, its specific contribution to the growth of ventures in the digital realm remains less explored. Clarifying the strategic role of coopetition in driving growth performance is critical for delineating the intricate relationship between coopetition and growth performance, particularly in the context of digital healthcare ventures. To fill in this research gap, this study uses coopetition theory and dynamic capabilities theory to look at how exploration and exploitation capabilities, as well as environmental uncertainty, affect the relationship between coopetition and growth performance in digital healthcare ventures. We collected a total of 338 questionnaires from Chinese digital healthcare ventures between March 2023 and August 2023. We conducted data analysis using SPSS 26.0 and its macro-program PROCESS. Our results confirm that coopetition has a positive effect on growth performance in digital healthcare ventures. Furthermore, exploration and exploitation capabilities fully mediate the relationship between coopetition and growth performance. Moreover, environmental uncertainty significantly and distinctively moderates the impact of exploration and exploitation capabilities on growth performance. This study contributes to the existing literature by providing deeper insight into the relationship between coopetition and growth performance in digital healthcare ventures. It also offers important practical implications for public health improvement and socio-economic development.

Early entrant's strategy for cooperating with a competing fourth-party platform

By integrating several third-party platforms that enter the market late (later entrants), a fourth-party platform can effectively compete with the third-party platform that enters the market early (early entrant). Our research develops an analytical framework to address the platform coopetition problem that the early entrant faces, i.e., integrating its service into the fourth-party platform or not, when there is a fourth-party platform in the market. This study provides optimal conditions and platform decisions for platform coopetition and then explores the impact of the implementation of the coopetition strategy on platform prices and consumer demands. Our analytical results show that the coopetition strategy is effective only when the sum of the strengths of direct and indirect network effects is low and the quality difference between the early and later entrants is higher than a certain threshold. Moreover, the early entrant always partially integrates its service into the fourth-party platform when the coopetition strategy is adopted. Such adoption always lowers the prices of the early and later entrants. The implementation of the coopetition strategy always increases the total consumer demand of the early entrant, but it also results in a reduction in the number of consumers in the standalone application of the early entrant.

Rethinking cluster under coopetition strategy: an integrative literature review and research agenda

AbstractThis study aimed to integrate the dimensions and elements of intra-cluster coopetition, identify the emergence of a complementary theoretical perspective to cluster theory and create an integrative research agenda to support the rethinking cluster approach based on coopetition. It is an integrative Systematic Literature Review that generates insights to move the topic forward. Results showed coopetition as context, process, or outcome. The research focus was grouped into six dimensions of intra-cluster coopetition: Strategic Adjustment, Perceived Benefits, Mediated Coopetition, Social Interaction, Coopetitive Orientation, and Temporality of Coopetition. Four hundred eighty-six elements used by scholars created a second-order coding to represent the variables of coopetition in clusters. From the integrative literature overview, a theoretical framework emerges with four dimensions: Conditional factors, Policies, Market commonality, and Formal supporting structure. These dimensions act as drivers, markets, or intensifiers of the intra-cluster coopetition strategy. At the same time, the dimensions suffer the influence of external, internal, and ecosystem contexts. Our literature review builds theory to advance cluster coopetition research and complement the Porterian perspective. The framework suggests the main elements to manage clusters under the coopetition strategy. These findings rethink cluster theory and deliver the business co-evolution perspective, considering the cluster as a business ecosystem with an open system based on coopetition. Findings offer an inductive-deductive pattern system to further research that represents the evolutionary trend of the topic itself.

Competition and cooperation: a coopetition strategy for sustainable performance through serial mediation of knowledge sharing and open innovation

Purpose The purpose of this study is to examine the effect of the coopetition strategy (CS) (the simultaneous pursuit of collaboration and competition) on sustainable performance (SP) through the serial mediation of knowledge sharing (KS) and open innovation (OI). Design/methodology/approach A structured questionnaire was used to gather data from corporate business enterprises, and partial least squares structural equation modeling was used for analysis. Findings Empirical evidence supports the coopetition strategy's role in enhancing KS, which in turn fosters OI, leading to improved SP. It has also been concluded that KS and OI have a significant serial mediation effect on the relationship between CS and SP. Practical implications Through the integration of KS and inward-outward open innovation, the coopetition model enables coopetitors leverage each other’s resources and capacities for mutual sustainability. To fully benefit from it, small and medium-sized enterprises (SMEs) in the Gulf Cooperation Council (GCC) must change their perception of free competition and actively engage in coopetition activities, particularly in the realms of knowledge and OI. Originality/value The most novel contribution of this study to the growing body of knowledge on SP is the establishment of empirical evidence regarding the crucial role of a serial mediation of KS and OI in the relationship between CS and SP. Unlike earlier research, this study provides a structured perspective and understanding of how and why CS, KS and OI were leveraged to enhance the SP of SMEs.

Always on par? How small- and medium-sized enterprises manage coopetition strategies to innovate with large firms

This article explores how entrepreneurial small- and medium-sized enterprises (SMEs) manage coopetition strategies to innovate with large firms. While coopetition offers opportunities for innovation and growth, asymmetries between SMEs and large firms can provoke unilateral actions, opportunistic tactics, and knowledge theft which can undermine SME innovation power and jeopardise coopetition success. Based on a qualitative multiple-case study of 25 coopetitive innovation projects, each involving an SME and a large firm, we find that SMEs manage these risks by pursuing a synergistic mix of three distinct coopetition strategies: (1) Co-distribution, (2) Technology licensing, and (3) R&D co-development. In each strategy, SMEs navigate different coopetition intensities by dynamically combining the principles of separation, integration, co-management and co-ownership to achieve specific innovation outcomes. Our findings suggest that SMEs shift between cooperation- and competition-dominant strategies and employ a mix of management principles to offset asymmetrical risks and maximise their innovation benefits from coopetition with large firms.

How do they do it? On the mechanisms of setting coopetition strategy among cultural institutions

Only few studies consider characterizing the coopetition formation stage, especially from the perspective of cultural institutions. A review of the literature, as well as observation of the functioning of cultural institutions in economic practice, allows us to notice the dichotomy of coopetition strategies, expressed in the simultaneous establishment of coopetition relationships by a given institution in both an emerging and intentional way. This article focuses on mechanisms of setting the intentional and emergent coopetition strategy on the example of cultural institutions (the coopetition strategy is considered here at the interorganizational level). Mechanisms are understood in this paper as causal pathways to the emergence of motivation to coopetition. The article is conceptual in nature and is based on a narrative approach to the literature review within strategic management. As its main contribution, this paper offers conceptualization of the mechanisms of setting the intentional and emergent coopetition strategy on the example of cultural institutions, which are examples of public and non-profit organizations.

“Us Versus Them” : The impact of homophily and trust in partner selection and cooperation intensity in coopetitive agreements

As an increasing number of companies adopt coopetition strategies (simultaneous cooperation and competition), it is important to better understand how they select their coopetitor (partner-competitor) and how they set the intensity of their cooperation with these competitors. Because previous studies underestimated the social ties in which these coopetitive agreements occur, this research answers the following research question: How do homophily and trust impact partner selection and the intensity of cooperation in coopetitive agreements? We conduct a multiple-case study to investigate a network of coopetitive relationships between nine competing Cameroonian firms in the distribution of construction and civil engineering equipment in the Douala region (the economic capital of Cameroon) and use ethnic groups to measure the notion of homophily. Because all these firms have interethnic and intraethnic coopetitive agreements, we were able to address the importance of homophily in partner selection and in the intensity of cooperation in coopetitive agreements. Our findings show, first, that coopetitors prefer to cooperate with competitors that belong to the same group because they trust them more and anticipate less coopetitive tensions and opportunistic behaviors in the future. Second, we note that the intensity of cooperation between competitors is much higher in intragroup coopetitive agreements (i.e., within the same group) than in intergroup coopetitive agreements (i.e., between two companies whose managers are from two different groups). Third, we underline that peer pressure and the existence of credible sanctions reinforce the positive relationship between being a member of the same group and trust and thus the intensity of cooperation between coopetitors.

Can SMEs improve their innovation through a coopetition strategy Evidence from Iranian IT SMEs

Can SMEs improve their innovation through a coopetition strategy Evidence from Iranian IT SMEs

The selection of sales channels considering consumer behavior preferences in a co-branding strategy

As a marketing strategy, co-branding has become popular among brand manufacturers in recent years. Unlike previous studies on co-branding, we extend the research from manufacturer-to-manufacturer coopetition strategies to a platform-based supply chain. This paper builds two game theory models involving two manufacturers and one online platform, and divides consumers into Mavericks and Herds, who seek uniqueness and uniformity, respectively, and discusses the channel selection and the market positioning strategy. Some interesting findings are obtained, first, the equilibrium decisions are improved and the optimal profits are enhanced by considering the upstream and downstream cooperation. Second, the online retail channel is chosen when the revenue-sharing ratio is medium and the commission rate is low. Third, brand manufacturers have more opportunities to choose the online retail channel when the co-branded product is marketed to Herds, which is summarized as the market segmentation effect.

Coopetition in Mearth. A Strategy Beyond Rivalry to Develop the Moon-Earth Ecosystem

The space economy, which refers to the diverse economic activities and industries that are related to outer space and space exploration, has been steadily growing over the years and has become a significant driver of technological innovation and economic growth. The growth of the space economy has been facilitated by technological advancements, reduced launch costs, and increased participation from private companies. This paper explores a new geographic space called “Mearth”, representing the Moon and Earth as a unified space. Specifically, the paper focuses on the innovations developed within the Mearth ecosystem that can contribute to an improved future. It is a conceptual-theoretical paper aiming to identify viable solutions to attract investments, generate technologies, and establish a new ecosystem within the novel geographic space of Mearth. This contribution supports the view that the coopetition strategy - essentially entailing cooperation among competitors - could represent the most suitable approach to join efforts to implement Mearth's economic system and its ecosystem. The primary reason lies in this strategy's ability to align the divergent interests of the ecosystem stakeholders. In terms of outcomes, the paper shows that a coopetition strategy leads to win-win solutions and will benefit all stakeholders in the Mearth ecosystem.

Service innovation decision for manufacturing enterprises based on a coopetition perspective

Based on product technology, service innovation can enable manufacturing enterprises to achieve value-added and competitiveness improvement. But the resources and capabilities of individual enterprises hinder service innovation, more and more enterprises choose to cooperate with competitors for service innovation. Therefore, this paper studies the strategic issues of service innovation in manufacturing enterprises based on the theory of coopetition. First, we construct a competition game model between two manufacturing service integrators (MSIs) regarding service prices, service levels, and service innovation investment. Then, a coopetition game model is established and compared for analysis. We have found that cooperation between MSI and competitor for service innovation can provide higher-quality services and create higher market demand. However, cooperation is not always beneficial for service innovation, as there exists a favorable environment for cooperation within which MSIs can achieve higher profits with lower service prices and investment in service innovation. In addition, the spillover effect in competition strategy is positively related to the service innovation performance of MSIs, but it has little impact under the coopetition strategy. These findings provide guidance and reference for the development of service innovation and service-oriented transformation in manufacturing enterprises.

Regional-level coopetition strategies and company performance: evidence from the Canadian wine industry

ABSTRACT Regional-level coopetition (collaboration among competitors in rural communities) has been linked to company performance. That said, there could be conditions (moderators) that help or hinder these networks from fulfilling such outcomes. This investigation examines the nature of the relationship between regional-level coopetition and company performance under key moderating effects. A resource-based theoretical lens is utilized to underpin the study. Following field interviews to shape the operationalizations and survey instructions, a quantitative study was undertaken in the Canadian wine industry to test the elements of the conceptual framework. The findings revealed that while regional-level coopetition drives company performance, regional-level rivalry negatively impacts this association. Surprisingly, industry experience intensified the potential dark-sides of these activities. As such, improved evidence has emerged on how coopetition strategies can be implemented in rural communities through the underlying mechanisms that can assist decision-makers of small enterprises to enhance their performance. Additionally, stronger insights are offered regarding a relational, stakeholder perspective of resource-based theory, in terms of how decision-makers may need to work with complementary and trustworthy rivals that can assist them to increase their company performance in competitively intensive environmental-level conditions.

Coopetition Strategy Choice of Duopoly Manufacturers with Key Component Technology Transfer

This paper investigates the strategic choice of key component technology transfer between two rival manufacturers. A benchmark competition model and two coopetition models (including fixed-fee licensing coopetition and two-part tariff licensing coopetition) where the manufacturers compete for end-customer demand while simultaneously collaborating on key component technology transfer through licensing. By comparing the outcomes of the competition model and coopetition models, it is shown that: (1) The optimal strategy choice for manufacturers depends on the degree of product substitution, the interfirm power relationship as well as the production cost difference of key components. Among them, the interfirm power relationship has the most significant impact on the optimal strategy choice. (2) Under certain conditions, fixed fees and two-part tariff patent licensing coopetition can achieve Pareto improvement and reduce the retail price of products, which is beneficial to both manufacturers and consumers. (3) The production cost difference of key components significantly affects whether manufacturers can achieve Pareto improvement under two coopetition models.

Intra-organizational Coopetition: Antecedents, Dynamics, and Outcomes of the Interplay between Cooperation and Competition

Most studies on coopetition strategy concentrate on the inter-organizational level. Lately, a growing literature has focused on coopetitive strategies within organizations, opening new windows for the study of the phenomenon. This article is part of this new context. The main objective is to design a research framework of the antecedents, dynamics, and outcomes of intra-organizational coopetition. We conducted qualitative and exploratory research, collecting evidence through a focus group with managers from a large educational institution. Our findings grouped categories of antecedents, dynamics, and outcomes into an intra-organizational coopetition framework, designed to support future research and management decisions. The findings also contribute to the advancement of the coopetition literature in the service sector, describing the interplay between cooperation and competition in the education industry. We hope that our findings will spark further research into intra-organizational coopetition strategies.

Influence of Coopetition on Firm Financial Performance: Mediating Role of Open Innovation Performance

It is essential for a firm to take advantage of the rising phenomenon of coopetition across multiple firms and marketplaces in today's highly competitive climate to enhance its financial performance. Hence, this study contributes to the existing body of literature by probing the link between coopetition and the success of open innovation initiatives in Pakistani SMEs. The failure of Pakistani SMEs to establish a controlled method of coopetition has had a deleterious effect on financial performance. The current research is conducted to identify the low open innovation problem in Pakistani small and medium enterprises (SMEs), which has a negative effect on financial performance. It aims to investigate the impact of coopetition on financial performance and the mediating function of the firm’s open innovation performance in it. To achieve this objective, a survey employing a cross-sectional research design was conducted. The respondents were selected from SMEs operating in the service sector in the cities of Bahawalpur, Multan, and Lodhran in Pakistan. A total of 155 questionnaires were distributed among managerial employees of the above SMEs. The data collected from the responses to the questionnaires was analyzed through Partial Least Square-Structure Equation Modeling (PLS-SEM). It was found that coopetition has a strong role in boosting financial performance. The importance of trust and dependence in crafting an effective coopetition strategy is also emphasized in this research.

Digitalization capability and sustainable performance in emerging markets: mediating roles of in/out-bound open innovation and coopetition strategy

PurposeStudies concentrating on digitalization and interconnected capabilities have increased over the past several decades. Digitalization capability and open innovation are perceived as sources of sustained competitiveness across disciplines. This study investigated how digitalization capability and coopetition strategy affect the sustainable performance of firms by exploring the role of internal and external factors in influencing the adoption and success of open innovation in emerging markets.Design/methodology/approachTo test the hypothesis, the authors conducted a structural equation model analysis on 509 firm datasets from the hub cities in China, an innovative battlefield where multilateral cooperation and competition are interwoven for globalization, clean development and the enhancement of economic growth.FindingsThe authors found that a firm's digitalization capability positively impacts outbound/inbound open innovation, coopetition strategy and sustainable performance. This study’s results support a series of mediating effects through outbound/inbound open innovation and coopetition strategy. Also, it provides a nuanced understanding of how digitalization capability and open innovation can affect sustainable performance in emerging markets.Originality/valueThe present study provides a nuanced understanding of how digitalization capability and in/out-bound open innovation can affect sustainable performance in emerging markets. The authors believe this model contributes to current knowledge by filling several research gaps, and this study’s findings offer valuable and practical implications for achieving open innovation and creating sustainable performance.

Production outsourcing decision in the presence of consumer’s preference uncertainty

We investigate upstream coopetition and competition in a supply chain in the context of a high-quality brand manufacturer’s strategy on upstream outsourcing and e-commerce platform’s strategy on downstream information disclosure. The high-quality brand manufacturer outsources production and sells through an e-commerce platform, where a low-quality manufacturer also sells. The high-quality manufacturer may outsource to a third manufacturer who produces only the brand manufacturer’s high-quality product, maintaining a competition relationship with the low-quality manufacturer (competition strategy). The high-quality brand manufacturer also has the option to outsource to the low-quality manufacturer, entering into a coopetition relationship (coopetition strategy). The consumers have knowledge about the quality of the two products, but they are uncertain about their quality preference. That is, they are not sure which of the two quality-differentiated products available in the market will meet their own needs. Their uncertainty can be eliminated by the e-commerce platform’s disclosure of preference-revealing information. We find that the brand manufacturer prefers the coopetition strategy when the ratio of the two products’ cost-quality efficiencies is very low or moderate. The e-commerce platform has an incentive to disclose preference-revealing information when the ratio of the two products’ cost-quality efficiencies is moderate or high. We show the optimal strategies of the supply chain with the brand manufacturer’s outsourcing strategy and the platform’s information disclosure strategy, and we also extend the discussion to the impacts of several related issues.