The Process of Coopetitive Strategy: A Case Study of Microbreweries in Porto Alegre

Abstract

Purpose: The study presents a dynamic and complex procedural experience performed by small microbreweries in a cluster in Porto Alegre, Brazil. Thus, this article aims to establish theoretical propositions about coopetition strategies in this context. Originality/value: One of the gaps in the organizational studies is an understanding of how the process of developing a new strategic dynamic takes place. We consider coopetition to be a process that involves narrow strategies of simultaneous coopetition and cooperation between competing firms, in different areas and levels of interaction. Design/methodology/approach: Qualitative, exploratory research was conducted, using data triangulation and multiple methods. The case study technique was adopted to perform an in-depth examination of the phenomenon of secondary data collection, participant observations, and semi-structured interviews. Findings: The results showed that microbreweries are developing a strategic process of coopetition through greater sharing of resources, information, interactions, learning, and inter-organizational and intra-organizational knowledge, essentially in the stages of distribution and sales. The reports and evidence of the research showed synergy between the mechanisms and common goals found, thus demonstrating the dynamic of these small businesses.

Microfoundations of dynamic coopetition capabilities in firms from a microbrewery cluster

“…Consequently, they became capable of being more competitive, obtaining larger market shares. Thus, the dynamic of the cluster confirms that coopetition capability can offer opportunities for increasing the competitiveness and performance of both firm and network (Gnyawali & Park, 2011) because they can take better advantage of the opportunities created through collaboration and shape their business to obtain coopetitive advantage (Monticelli, Silveira, et al. , 2018).…”

“…In other words, this case study shows that the network externalities in a cluster can motivate coopetition, as firms integrate for inter-firm and inter-competitor collaborations (Monticelli, Silveira, et al. , 2018).…”

“…Consequently, its strengths and weaknesses are paradoxical (Chen, 2008). Firms that can integrate their knowledge and resources and diminish uncertainty, develop coopetitive advantage in their markets (Klein et al , 2020; Monticelli, Silveira, & Silva, 2018; Padula & Dagnino, 2007). Four mechanisms yield coopetition from cooperation and competition: mutual pursuits, resource leverage, safeguarded resources, and relevant commitments (Gnyawali & Charleton, 2018).…”

“…The Porto Alegre School of Beer (Escola da Cerveja, 2016) was created in 2010 to further the above objectives. Coopetition therefore yields intangible benefits, mainly when this strategy generates spillovers for other participants in the network, developing externality gains (Monticelli, Silveira, et al. , 2018).…”

“…The processes developed by the cluster can therefore be considered dynamic transformation capabilities that facilitate generation of competitive advantage. Strategic flexibility was observed in several situations, supporting operational, marketing, sales and logistic processes among these craft microbreweries that exchanged critical information and consolidated the trust needed for business partnerships (Monticelli, Silveira, et al. , 2018).…”