Business interaction between competitors – towards a model for analyzing strategic alliances

Abstract

Purpose -The purpose of this paper is to understand the intercompetitor relationships response to the contextual developments, the interaction processes between participants and the relationship nature and outcomes. Design/methodology/approach -A model to study intercompetitor strategic alliances, within the theoretical realm of business relationships and industrial networks, is proposed. Methodological challenges related to this phenomenon are put forward and manners to overcome them are suggested. Findings -The proposed model encompasses four components: interaction context, relationship nature, interaction processes and relationship outcomes. The specificities of intercompetitor interaction are considered, leading to the inclusion of the relationship nature's dimension that tackles the coopetition character of such relationships. Further, since the relational aspects of the relationship are highlighted, in relation to the economic exchanges' characteristic of vertical relationships, it is expected, in the horizontal business interactions, that coordination processes prevail over adaptation processes. Originality/value -Strategic alliances established between competitors are a growing phenomenon that may entail many benefits to those involved in these relationships. Still, business interactions between competitors are not sufficiently investigated and conceptualized. It is argued that an enlarged view of intercompetitor relationships is attained by using a dyadic and network perspective.

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“…These relationships involve “cooperative inter-competitive relationships within networks” (Santos 2016, p. 6). Scholars conclude that “the increasing reality of these [inter-competitor] relationships is unquestionable” (Santos and Baptista 2015, p. 296). The nature of these competitor relationships varies and “can change from competition at one point of time, to cooperation or coexistence, or co-opetition at another” (Bengtsson and Kock 1999, p. 182).…”