Coopetitive Relationships Research Articles

Relational resources for innovation ambidexterity within coopetitive relationships: the contingent role of managerial ambidexterity

PurposeWhile the performance benefits of relational resources and managerial ambidexterity have been widely discussed in coopetition literature, there is only limited evidence that illustrates the underlying relationships between these relational resources and managerial ambidexterity. Against this background, this paper aims to investigate how managerial ambidexterity moderates the innovation ambidexterity effects of relational resources (i.e. reciprocal investments and complementary resources).Design/methodology/approachThis study forwards various hypotheses that are grounded within the theoretical tenets of the relational view and the dynamic capabilities perspective. To test the hypotheses, this study uses survey data provided by 313 firms that pursue horizontal coopetition relationships.FindingsThe research findings offer important insights in that while reciprocal investments lead to innovation ambidexterity, complementary resources do not result in such benefits. Additionally, managerial ambidexterity complements the relational resources to develop innovation ambidexterity if and only if both managerial exploration and exploitation are applied simultaneously.Originality/valueAs opposed to widely-held beliefs, this study finds that firms' use of complementary resources is not likely to lead to innovation ambidexterity even though such resources can help in developing strong relationships. In addition, although often overlooked, managerial ambidexterity plays a vital role in transforming relational resources into useful innovations for firms involved in coopetition relationships. It is crucial for firms that their managers balance their ambidextrous activities of exploration and exploitation so as to develop innovation ambidexterity.

Ocean shipping company’s encroachment with outsourcing competition

As a new source to increase profits, some ocean shipping (OS) companies are beginning to encroach on the downstream market to canvass for cargoes, which would form a co-opetition relationship between OS companies and forwarders. Meanwhile, forwarders need to complete the transportation tasks through outsourcing strategy selection, that is, choose a delegation decision to outsource all transportation to an OS company, or choose a control decision to outsource ocean transportation and hinterland transportation to the OS and hinterland shipping (HS) companies, respectively. This paper uses a game-theoretical model to study the equilibrium strategy of OS company’s encroachment and forwarders’ outsourcing, and to further explore the strategic interactions between the two strategies. We solve the model analytically and find that an OS company might be worse off from encroaching on the shipping market if the entry cost is high or the cargo-canvassing capacity is high, whereas forwarders are always worse off with the OS company’s encroachment. Surprisingly, forwarders can suppress the OS company’s encroachment by changing their outsourcing decisions from control to delegation, or by improving their cargo-canvassing capacities. Our study also shows that forwarders prefer control decisions in the non-encroachment scenario, and they prefer delegation decisions if the market competition is fierce in the encroachment scenario. As for the HS scheme, introducing competing HS companies into hinterland transportation is always the optimal choice. Further, we consider an extension of the effect of OS company’s encroachment timing and show that forwarders as the first movers can make the OS company be less possible to encroach on the shipping market.

Establishing an understanding of the innovation process of informal micro-enterprises

Innovation has been discerned as a catalyst that enables firms to remain relevant and sustainable. In recent years, the innovation discipline has been extended to the informal sector. Nonetheless, to date little is known about the process that is followed by informal micro-enterprises to execute innovation activity in each innovation phase. Thus, this study sought to establish an understanding of the process that is followed by informal micro-enterprises to execute innovation activity in each innovation phase. The study adopted a mixed-methods research design to sequentially collect and analyze quantitative and qualitative data from informal micro-enterprises that are based in the townships of the Gauteng province. The study revealed that credible customer assemblies are used to acquire knowledge and information necessary to execute innovation activity and to test innovations before they are launched in the market. Moreover, while informal micro-enterprises mostly use internal resources to transform innovative ideas into innovations, coopetition relationships aid to foster open innovation and limit the strain on internal resources. The findings suggest that informal micro-enterprises innovate differently from formal small businesses and there is a need for researchers and the government to introduce policies and initiatives to enhance open innovation in the informal sector.

Coopetitive tensions across project phases: A paradox perspective

Coopetition is a paradoxical phenomenon that encapsulates the dynamic interplay between cooperation and competition. Management of tensions, inherent in coopetitive relationships, is a success factor for this type of collaboration. Previous research has extensively examined management of tensions in the implementation phase of coopetitive innovation projects but has paid little attention to the dynamics of these tensions across different project phases. This gap is disconcerting since the innovation management literature recognizes the fuzziness and uncertainty of the pre-project phase as critical to the continuity of an innovation project. We argue that differences between project phases are likely to affect tensions, and qualitatively investigate their nature and management in the pre-project and implementation phases. The findings indicate that companies in mature industries often experience strong intra-organizational tensions during the pre-project phase due to performing and organizing paradoxes. These tensions may harm companies' participation in projects and need to be handled by a working-through strategy at the company level. In contrast, inter-organizational tensions are identified as the dominant type of tensions during the project implementation phase due to performing, organizing and learning paradoxes. Inter-organizational tensions need to be addressed by working-through strategy, splitting-and-integration strategy or a combination of the two strategies, respectively.

Collaborative maintenance service and component sales under coopetition patterns for OEMs challenged by booming used-component sales

Nowadays, in the maintenance, repair, and overhaul (MRO) market of capital-intensive equipment, the booming used-component sales pose challenges for original equipment manufacturers (OEMs) in both maintenance services and component sales. To deal with these new challenges, this paper investigates the optimal maintenance service and component sales strategy for OEMs. Considering that the application of used components enhances the advantages of independent maintenance providers (IMPs), the preventive replacement policy utilizing used components is introduced into the maintenance service strategy. Meanwhile, for the threat to the sales of OEM components caused by used-component suppliers (UCSs), the sales price and acquisition ability decisions are jointly considered in the used-component sales strategy. By capturing their impacts on customer utility, the competition in maintenance services and used-component sales are analyzed. Then, by characterizing various coopetition relationships, we propose the optimization models under three patterns of used-component sales: independent operation, cooperation with UCS, and cooperation with IMP. With these models, an OEM can determine the collaborative optimization strategy to obtain the most profitable way under each pattern. Furthermore, through the sensitivity analysis, we provide OEMs with important managerial insights into the pattern selection in different market environments.

Identifying the role of alignment in developing innovation ecosystem: value co-creation between the focal firm and supplier

PurposeThis study explores how firms develop innovation ecosystems through forming alliances with suppliers and the effects on innovation, economics and consumer welfare.Design/methodology/approachThis study develops two game theory models to compare supply chain structures with and without ecosystem alignment. (1) A single supplier provides components to two competing manufacturers (one innovative and one non-innovative). (2) An innovative manufacturer (focal firm) aligns with a supplier that also supplies components to a competing manufacturer.FindingsAn ecosystem construction strategy that alliances use to reconfigure coopetitive relationships and ecosystem alignment is identified. A manufacturer aligning with a supplier will strengthen the monopoly of the alignment, which is beneficial to both Allies but always harmful to the competitor. Interestingly, such an ecosystem construction strategy may be beneficial to future innovation, the industry and consumers.Research limitations/implicationsThe findings raise several topics that warrant further exploration. For example, scenarios with multiple suppliers were not considered. Furthermore, the implementation of regulatory measures to mitigate the harmful effects of alignment on innovation should be investigated.Practical implicationsThis paper provides a guide for enterprises seeking alignment and to the corresponding measures required to stimulate innovation within ecosystems. What’s more, the aligned firm should not always attempt to win the race but should instead take measures to encourage the competitor to share demand information.Originality/valueFirstly, most research on supply chain management has focused on its economic impacts. There is a lack of research on the influence of ecosystem alignment on the innovation incentives of firms. Furthermore, the literature still lacks evidence of how ecosystem construction strategies can increase consumer welfare. In the present study, the authors model a complex market structure that includes a competitor, which is becoming increasingly common in high-tech markets. Thirdly, this paper is one of the few that examines the impacts of market-structure changes on innovation incentives. Most importantly, this study extends the current literature by studying coopetition in the ecosystem context.

Value creation, appropriation and destruction in coopetitive relationships among micro-firms

Although coopetition literature developed a lot for years, several dimensions remain under-studied. This paper addresses three of these gaps. First, the dilemma between value creation and value appropriation for coopetitors; second, the lack of empirical studies regarding the mechanisms of coopetition among micro-firms in traditional activities; third, the recent interest for geographic levels in coopetition, with a focus on the local level. Our research question is therefore: What are the mechanisms of value creation and value appropriation in local-level coopetition among micro-firms in traditional industries?We use an in-depth case study about a small French wine appellation, which is characterised by a modestly sized cultivated area occupied by small micro-firms, the existence of a cooperative cellar, but also a weak brand image.Our research contributes to the ongoing coopetition discussion in three ways: we enrich the literature on coopetition by documenting value creation and appropriation mechanisms, identifying nine different mechanisms that are collective or individual; we provide some empirical insights to coopetition literature regarding micro-firms and local-level coopetition; we produce some managerial recommendations.

An analysis of the factors driving utility-scale solar PV investments in China: How effective was the feed-in tariff policy?

China has become a global manufacturing hub for many industries; recently, thanks to various renewable energy support schemes, we also see the country's growing share in renewable energy investments. However, significant renewable energy investment is still required to achieve China's ambitious carbon targets: achieving carbon peak by 2030, and carbon neutrality by 2060. Based on province-level data covering the whole period of feed-in tariff (FIT) support mechanism, this paper explores the effect of renewable energy subsidies, costs and other economic factors on the installed capacity of utility-scale solar PV (UPV) in China. Our findings indicate that the FIT mechanism in tandem with a significant reduction in renewable energy investment costs have been the major drivers of China's dramatic increase in UPV investments. However, subsidies to distributed solar PV investments also have a crowding-out effect on UPV investments, which result in a statistically significant co-opetition relationship between UPV and Distributed PV. Furthermore, heterogeneity in provincial power consumption and energy supply also affect these investment dynamics.

Superboosting the athlete social media brand: events as an opportunity for follower growth

ABSTRACT Research Question An athletes’ social media following is a proxy of their popularity and a key metric for brand monetization. Yet, how a following can be grown strategically remains unclear. This research investigates the effects of newly formed brand networks on athlete follower growth during a non-league event with representative teams. We used the sport brand ecosystem framework and examined athlete-related, event-related, and brand-networking-related factors as determinants of follower growth on Instagram. Research Methods We collected longitudinal behavioral data, namely social media following and tagging behavior of athletes in the context of Laver Cup, an elite men’s team tennis event. A sociogram was used to visualize brand networking of athletes and the event. The hypotheses were tested using a multiple linear regression with a wild-cluster bootstrap-SE. Results and Findings Results indicated that the pre-existing size of an athlete’s following and brand networking with athletes’ and the event’s brands through the user tagging function predicted follower growth. This highlights the impact of exposure on social media during an event and the value of brand networking as a brand-building strategy for athletes. Implications The findings contribute knowledge on athletes’ vertical and horizontal brand relationships. The study uncovers coopetitive relationships between athlete brands and shows that new brand networks, visible through social media user tagging, spur athlete brand growth. To practitioners, this demonstrates that events enable athletes to strengthen their social media brands, which can be amplified through athletes’ large pre-existing social media following and strategic collaborations with other athletes.

Coopetition – Strategy and interorganizational transformation: Platform, innovation barriers, and coopetitive dynamics

We study how a rivalrous interorganizational relationship transforms into a coopetitive strategy. The study employs a qualitative method and systematic combining approach to examine an evolving coopetitive relationship in the truck industry. We studied a platform project during the concept phase of development. We found that multibrand platform development is characterized by innovation barrier multiplicity and concurrency. The study presents a model where we propose that history-related Initial Conditions Innovation Barriers (ICIB) are blended with project-related Emerging Innovation Barriers (EIB). This research makes a theoretical contribution by proposing that through strategic and operational stretch firms transform from a homogenous competitive relationship to a heterogeneous coopetitive relationship.

Exploring the co-opetition mechanism of renewable energy trade between China and the “Belt and Road” countries: A dynamic game approach

In an attempt to find the key factors influencing the co-opetition relationship between China and “Belt and Road” countries, we firstly analyzed the status quo of the renewable energy trade between the two parties. Then, we constructed a dynamic game model, taking China and the “Belt and Road” countries as two players of the game. Next, we estimated the influence of different strategies to be adopted by China and the “Belt and Road” countries based on the model evolution results under different scenarios. Results show that: (1) The strategies to be adopted by both sides (players) for renewable energy product trade in the dynamic game process depend on the differences between their trade costs and additional benefits; (2) Whether China and the “Belt and Road” countries can achieve a win-win situation in their trade cooperation depends on the additional benefits obtained by the two sides (players) due to the additional benefits from cooperation and external benefits of the “Belt and Road” countries through technology spillovers, trade costs and the losses brought by the game strategies of both players, i.e., when one player adopts a cooperation strategy while the other takes a competition strategy; and (3) There is an extra income distribution coefficient in the co-opetition relationship between the two parties in the renewable energy trade, which will maximize the probability of “cooperation strategy” to be adopted by both sides. Finally, we put forward policy implications based on the above findings.

Striking the right balance in tension management. The case of coopetition in small- and medium-sized firms

Purpose The purpose of this study is to elaborate on the management, sources, levels of strength and dynamics of inherent tension in coopetition between small- and medium-sized firms (SMEs). Design/methodology/approach An embedded single-case design is applied in the study. Two manufacturing SMEs in coopetition are studied. The units of analysis are their past dyadic coopetition with other competitors, their present coopetition with each other and their view of possible dyadic coopetition with other partners in the future. Findings This study addresses the call for more research on coopetition and tension dynamics. It gives longitudinal insight into the changes of a coopetitive relationship through the evolution of tension inherently present in the relationship. Furthermore, the results show that a partial separation of the cooperative and competitive dimensions enables entrepreneurs’ integration of a contradictory logic. The successful management of tension also relies on mechanisms for mutual value appropriation, which eventually enhances the ability to embrace contradictions. Originality/value This study contributes to the limited knowledge on tension management by showing how partners in coopetition apply different tension management principles or combinations of principles due to how the tension in the relationship evolves. Furthermore, on a practical level, it introduces a mapping or configuration scheme to identify the sources and levels of strength of inherent tension, enhancing coopetition partners’ ability to monitor their relationship over time.

Co-Opetition Symmetry and Firm Performance: A Study of Sports Goods Industry

The purpose of this paper is to examine the co-opetition and firm performance relationship through the mediating role of innovation and moderating role of trust”. This is broadly acknowledging that symmetry of co-opetition (i.e., simultaneous competition and cooperation) is achieving core advantage when firms engage in such co-opetitive relationship. Further, it is hypothesized that co-opetition has a positive influence and firm performance. The sector selected for this study is sports goods industry where requirements of co-petition are just not a requirement but also a necessity as small businesses with limited assets need heavy resources to perform internationally. Therefore, required attention was given to the effect of co-opetition on firm performance. The sample size were 415 and survey questionnaires distributed to respondents representing sports goods industry using a simple random sampling technique. The only 361 responses were useable for analysis other 54 questionnaires did not receive or not in condition to use them. The finding of this study indicated that co-opetition through innovation has a significant effect on firm performance. Furthermore, this study also verifies that the influence of trust on co-opetition and performance relationship reveals some important nuances that indicate this relationship either strong or weak. The implication of this study investigation offers that the practitioners and managers contain “optimal level” of coopetition with their competitors, which always increases firm performance. Where as “too little” and “too much” intensity of co-opetition distrust between rivals and ultimately decreases firm performance. “Finally, this study is one of the initial studies that investigating the role of innovation and trust on co-opetition and performance relationship in sports goods industry”.

Friends or foes? Strategic technology opening and adopting under competition between technological firms

• The coopetition relationship between an incumbent and an entrant is explored. • The entrant's technology development capacity decides both parties’ strategies. • A medium technology development capacity promotes coopetition. • Technology transformation rate affects coopetition conditions. • Coopetition can lead to greater consumer surplus and social welfare. This study investigates the motivation behind an incumbent firm's strategy to open up its technology and an entrant's decision on whether to adopt this technology. We model the interactions between firms’ strategies toward coopetition and the entrant's technology development capacity, as well as the technology transformation rate, which occurs in the technology adopting process. We find that the two technological parameters exert significant influence on the coopetition decisions of firms. Moreover, consumer surplus and social welfare are compared under different configurations. We further verify the robustness of our main results in two extension cases.

Performance implications of corporate venture capital investments for entrepreneurial ventures: the differing moderating effects of R&D intensity before and after IPO

PurposeOne increasingly popular financing option for entrepreneurial ventures is to attract corporate venture capital (CVC) investments. Prior research tends to take a CVC-centric perspective assessing the benefits and contingencies for incumbent firms or corporate investors to engage with entrepreneurial ventures. Few studies have taken the opposite perspective of investigating factors that entrepreneurial ventures need to take into account when engaging with CVC investments. As such, this study aims to investigate pre- and post-IPO entrepreneurial venture performance that partners with CVC providers or corporate investors, as well as to assess organizational and environmental contingencies.Design/methodology/approachThis study draws on a sample of 631 entrepreneurial ventures from the CSMAR database ranging from 2009 to 2019, along with CVC financing data from the CVSource database and financial data in entrepreneurial ventures’ annual reports from the Juchao Network. This study applies multiple linear regression modelling and fixed effect panel data analyses to test the proposed hypotheses.FindingsThe results show that CVC investment contributes to entrepreneurial ventures’ financial performance, both pre- and post-IPO. However, while research and development (R&D) intensity and geographic proximity strengthen the positive relationship between CVC investment and entrepreneurial ventures’ performance pre-IPO, R&D intensity has a negative moderating effect on the relationship between CVC investment and entrepreneurial ventures’ performance post-IPO.Practical implicationsFirst, in emerging economies, adopting a CVC financing strategy is an important strategic choice for entrepreneurial ventures that have a great demand for external capital, resources and technology support. Second, leveraging the relationship between external financing and internal R&D investment is essential for them to maintain their core competitiveness and sustainable growth. Moreover, entrepreneurial ventures should deal with the coopetitive relationship with incumbent companies and manage their dependency on other market participants in the external environment.Originality/valueThis study focuses on the performance implications for entrepreneurial ventures engaging with CVC investments pre- and post-IPO. First, this study broadens and expands prior research on the mechanism of the relationship between CVC and entrepreneurial ventures’ financial performance. Second, the research conducts a comparative study of the moderating effects of different timings. Third, this study applies learning theory to the field of CVC in emerging economies.

Determinants of Coopetition Relationships in International Joint Ventures for High-Speed Rail Projects

The mileage of high-speed rail (HSR) is expected to grow in the foreseeable future. Fierce international competition and HSR business uniqueness have facilitated the broad application of international joint ventures (IJVs) globally. However, the interaction between competition and cooperation complicates IJVs, and IJVs partners' implementation has rarely been informed concerning the fluent operation of IJVs for HSR projects. This study aims to examine the determinants of IJVs coopetition for HSR projects. We identified 35 variables along with their clusters through literature review and pilot study, and collected data from the international HSR industry using a questionnaire survey. Eight clusters verified by the confirmatory factor analysis come from three levels: macro-level, project-level, and firm-level. Based on the partial least squares structural equation modeling (PLS-SEM), a path model for the coopetition relationship has been established, demonstrating that macro-level and project-level determinants affect the coopetition relationship via the firm-level determinants. Furthermore, the path model indicates recommendations corresponding to various situations (isolating situation, partnering situation, contending situation, and adapting situation) for IJVs members to find a way to improve the coopetition relationship. Thus, this study not only contributes to the existing knowledge body on coopetition theory, but also enhances HSR contractors' comprehension of the coopetition relationship determinants as well as the interactions.

Coopetition and international entrepreneurship: the influence of a competitor orientation

PurposeGuided by a relational, stakeholder perspective of resource-based theory, the purpose of the current investigation is to help unpack the complexity of the performance-enhancing nature of coopetition for international entrepreneurs, namely the interplay between collaboration and competition. The context features under-resourced wine producers owned and managed by entrepreneurs that have implemented an internationalised business model. The focus of the study involves the influence of a “competitor orientation”, namely when decision-makers understand the short-term strengths, weaknesses, long-term capabilities and strategies of key current and potential rivals.Design/methodology/approachData collection primarily featured semi-structured interviews with owner-managers of wine-producing firms in New Zealand that reflected heterogeneity amongst international entrepreneurs' strategies targeting different product markets within their respective business models. Secondary data were also collected where possible. Specifically, interviewees' firms exhibited different portfolios involving wine sales (with varying export intensities) together with augmented sales of tourism-related products/services focussed on the domestic market.FindingsCoopetition activities amongst international entrepreneurs varied; i.e. influenced by respective owner-managers' competitor orientations. Illustrations of different decision-makers' business models within a 2 × 2 matrix feature those with a low- or high-export intensity, together with a narrow or augmented product portfolio. Internationalising entrepreneurs' perceptions varied regarding the extent to which their respective business model was oriented towards local cluster-based domestic tourism with limited export sales, as opposed to those with national and more importantly international wine sales. Possessing and acting upon relevant knowledge manifested in which competitors international entrepreneurs collaborated with and the extent to which this took place across product-market strategies. In turn, this enabled particular decision-makers to exhibit flexibility; hence, entrepreneurs enter and exit certain markets together with changing export intensities, as varying opportunities were identified and exploited.Originality/valueAlthough the performance-enhancing nature of coopetition is largely established in prior literature, the complexity of that relationship remains relatively under-researched, not least, amongst international entrepreneurs. More specifically, the extent to which decision-makers that are engaged in coopetition exhibit a competitor orientation remains under-researched. Unique insights feature a 2 × 2 matrix in order to provide originality regarding international entrepreneurs' respective product-market strategies within their business models that are underpinned by varying coopetition relationships and competitor orientations.

Airport classification in Chinese multi-airport regions

The agglomeration of airports into multi-airport regions (MARs) has become one of the salient features of the worldwide air transport system in the last decades. Meanwhile, in China, the development of HSR is growing quickly, and is both competitive to and cooperative with the aviation network. To date some research has focused on the airport classification with aviation network properties within the specific MARs. However, little research comprehensively integrates complementary transport systems (such as civil aviation versus high-speed rail (HSR)) into the analytical framework for airport classification. The purpose of this paper is to identify the unique nature of component airports and their distribution in MARs in China from multiple perspectives by accounting for the influence of the HSR system. Airports are classified along multiple dimensions including competitive concentrations, the interaction between air transport and HSR, and airport community structure, among others. The results produce distinct partitions of the component airports in Chinese MARs, and provide insights into Chinese airport functionality and impacts of the HSR network on the distribution of different types of airports. The conclusions provide a more comprehensive assessment of airports’ spatial arrangement in the unique Chinese MAR context. Although this paper did not derive the market share allocation and co-opetition relationship between a specific airport and HSR, it proposed a basic framework for future research.

The Co-Opetition Relationship between Bus and Bicycle Sharing in Integrated Public System from Travel Accessibility Perspective

The Co-Opetition Relationship between Bus and Bicycle Sharing in Integrated Public System from Travel Accessibility Perspective

The Co-Opetition Relationship between Bus and Bicycle Sharing in Integrated Public System from Travel Accessibility Perspective

The Co-Opetition Relationship between Bus and Bicycle Sharing in Integrated Public System from Travel Accessibility Perspective