Research on coopetition – the simultaneous occurrence of competition and cooperation among firms – is usually limited to the realm of large firms. While some research has examined the motives and outcomes of coopetition among small- and medium-sized business, little is known about how coopetition is managed among micro-firms. The French wine sector is dominated by micro-firms, among which coopetition is common. Focusing on the Pic Saint Loup area in south-eastern France, this article analyses how micro-firms manage coopetition. While we observe similarities in coopetition with respect to large firms, a distinct micro-firm coopetition mode is identified: (a) contrary to expectations, the management of coopetition is highly formalised in micro-firms; (b) as with large firms, the management of micro-firm coopetition requires a separation between competition and cooperation, but such separation occurs outside the firm – in the form of a collective structure; and (c) in contrast to large firms, small firms exhibit an increase in individual-level dimensions of coopetition with decreasing firm size. We conclude that policy should encourage coopetition among micro-firms provided that it is tailored to micro-firm specificities.

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Winemakers in South France combine contingently institutional logics to achieve economic performance. Entrepreneurs who decide to cooperate with their competitors must manage four phases of “coopetition”: launch, formalization, protection, and reinforcement. They engage in the coopetition process by referring to a professional logic that becomes dominant, and they complete the process by fostering a community logic that is combined with the professional logic. Identity and legitimacy are the key elements that entrepreneurs segregate and blend, which entails new combinations in the respective influential power of state logic, professional logic and community logic.