Coopetition: a fundamental feature of entrepreneurial firms' collaborative dynamics

Abstract

Purpose This paper aims to explore coopetition as a fundamental feature of the collaborative dynamics inherent in entrepreneurial ventures. The authors present a conceptual model and definition of entrepreneurial coopetition, the latter being explained as entrepreneurial involvement in simultaneous cooperative and competitive interactions with business network actors in a relational environment. Design/methodology/approach Using the micro-brewing industry in a Southern State in the USA, as an empirical base, the authors use an abductive case study approach drawing from multiple data sources including semi-structured interviews, marketing materials, information available on websites and social media, as well as information contained in newspaper articles and policy documents. Findings Findings suggest that entrepreneurs habitually interact in a coopetitive manner through norms formed in interaction and that these are often in response to the environment. Research limitations/implications Findings are limited to one particular context. Future research could include entrepreneurs from other sectors, state or country contexts which may reveal other coopetition themes. Practical implications More benefits in coopetition could be reaped if the entrepreneur were more cognitively aware of, and strategically planned for, the coopetitive processes in which they are (or could be) engaged. Originality/value The authors open the black box of entrepreneurial coopetition by putting forward and empirically examining a conceptual definition of entrepreneurial coopetition. This work moves the coopetition discussion beyond the motives behind and consequences of coopetition, analysing interactions from a process perspective. The authors respond to recent calls for a deeper understanding of coopetitive mind-sets and a multilevel approach to coopetition.

Unpacking the relationship between a coopetition-oriented mindset and coopetition-oriented behaviours

“…Over the past twenty years, there has been a growing interest surrounding coopetition-oriented behaviours (also known as coopetition activities or coopetition strategies) throughout the broader business-to-business marketing literature (Bengtsson and Kock, 2000; Rusko, 2011; Park et al , 2014; Bengtsson and Raza-Ullah, 2016; Felzensztein et al , 2018; McGrath et al , 2019; Lascaux, 2020). These activities are described as being the interplay between cooperation and competition, whereby rival organisations (especially smaller-sized entities) share resources (e.g.…”

“…As such, it could be that the coopetition-oriented mindset–coopetition-oriented behaviours link is affected by organisations’ degree of internationalisation. Collectively, these research gaps signify that work should be undertaken to unpack this association to identify how firms can best-manage the interplay between cooperation and competition (extending Brandenburger and Nalebuff, 1996; Tidstrom, 2009; Mattsson and Tidstrom, 2015; Leite et al , 2018; McGrath et al , 2019). More formally, under resource-based theory and the relational view (Barney, 1991; Dyer and Singh, 1998; Lavie, 2006; Dyer et al , 2018), the objective of this current study is to evaluate the relationship between a coopetition-oriented mindset and coopetition-oriented behaviours under the moderating roles of industry experience and degree of internationalisation.…”

Managing technology transfer between coopetitive firms: the roles of coopetition, asset specificity and justice

“…Coopetition with the paradox perspective challenges the traditional resolution of a trade-off because it manages opposites, thus showing a synergistic consequence of the cooperative and competitive forces Schad et al, 2016;McGrath et al, 2019). It is, therefore, crucial to understand that coopetition is not simply the addition of the two separate continuums (Bengtsson et al, 2010) because cooperation and competition mutually define and depend on each other (Schad et al, 2016); meanwhile, the characteristic of contradiction existing in the opposites will bring tensions that lead to the instability of the inter-firm relationships but can also stimulate partners' effectiveness and creativity (Chiambaretto and Fernandez, 2016).…”

Does competitive aggressiveness negatively moderate the relationship between coopetition and customer satisfaction performance?

“…That is, companies can supplement their unique selling points (points-of-differentiation) by harnessing rivals' resources and capabilities to enhance their customer satisfaction performance (Felzensztein et al, 2018). Thus, coopetition can assist small firms to satisfy the wants and needs of their target markers in ways that would be more difficult to achieve through their own assets (McGrath et al, 2019;O'Dwyer et al, 2011). Accordingly, it follows that:…”

“…The empirical context for this current article was the New Zealand wine industry. Wineproducing countries (as well as other firms within the global alcohol market) are wellknown for hosting the above-mentioned factors (Felzensztein et al, 2014;Mathias et al, 2018;McGrath et al, 2019). For example, Crick (2018) found that wine producers are cooperative through lending equipment, such as expensive machinery that is needed only once a year (e.g., during the harvest).…”