Purpose
The purpose of this study is to focus on a growing strategic approach in global industries: the coopetition. Cooperation among competitors, namely, coopetition, is a strategic guideline in many global industries affected by technological innovation. This study discussed the effect of firm-, inter-firm- and industry-level drivers leading to coopetitive agreements in global industries affected by technological innovation.
Design/methodology/approach
By using an event history analysis, the authors develop a framework on firm-, inter-firm- and industry-level drivers on the likelihood of each competitor in the industry entering into coopetitive agreements in global competitive contexts. Empirical data are analyzed in five global industries: car industry, telecommunication industry, air transportation industry, bank industry and computer programming services industry.
Findings
The results of this study suggest that firms’ experience in cooperation (H1) predicts whether a firm will enter a coopetitive agreement. Moreover, the cultural similarity among competitors (H2) predicts whether a firm will enter a coopetitive agreement with a culturally similar competitor, while the total number of competitors already involved in coopetitive agreements (H3) has a low positive effect on the likelihood of a firm to coopete. Finally, the speed of agreements among competitors (H4) and the total number of coopetitive agreements in the industry (H5) (only in the car industry and software industry) are positively related to the chance of a firm entering into a coopetitive agreement.
Research limitations/implications
First, the authors identified and tested specific drivers of coopetition as a result of the literature review and data accessibility. The results may have omitted some variables able to further explain the event of coopetition. Second, the results of cultural distance versus cultural similarity revealed differences on firms’ behavior according to their different nationality. Chinese firms were the most oriented to deal coopetitive agreements with other Chinese firms, while firms from other countries were progressively less oriented by cultural similarity. These results may lead to studies of the “country of origin effect” on which partners to include in coopeititve agreements or which network of partners to join. Finally, the findings of this study are based on five industries over a specific ten years period of time. Consequently, the results certainly reflect the evolution of these industries over the time period considered.
Practical implications
The empirical investigation clarifies the relationship between decisions on strategy and competitive dynamics with the decision-making option to coopete. While managers take into account strategic moves against competitors, according to the authors’ investigation, it is valuable to consider coopetitive actions, especially when other competitors are involved in coopetitive agreements and the industry is affected by technological innovation. Moreover, the knowledge of drivers at the firm, inter-firm and industry level affecting coopetition is helpful to identify the weak or strong signals that show the rise and proliferation of coopetition in an industry.
Social implications
This study highlights the relevance of coopetition as an emerging approach in the competition among firms for developing or exploiting technological innovations. This approach can improve results in technological innovations that can have an impact in sustainability as well as new innovative solutions for social progress.
Originality/value
In literature, attention has been focused on drivers explaining the growing number of coopetitive agreements in several industries. Some contributions already discussed this topic from the perspective of costs and benefits for players. This study tries to continue to fill this research gap by studying, at firm, inter-firm and industry level, drivers of the likelihood of each competitor in the industry entering into coopetitive agreements in global competitive contexts.
