Coopetition: An Introduction to the Subject and an Agenda for Research

Abstract

The traditional view of inter-firm dynamics suggests that relationships are either competitive or cooperative in nature. However, it is apparent that in practice, firms can compete and cooperate with each other at the same time. The term used to refer to a relationship between two firms that simultaneously involves both competition and cooperation is "coopetition." Although there is evidence to suggest that organizations have been involved in coopetitive relationships for some considerable time, it is only relatively recently that the subject has found increased favor in the academic literature. It would appear, however, that the literature concerning coopetition is still limited in scope, and in order to address the issue, this paper presents an agenda for researchers interested in the subject of coopetition. The agenda is generated by reconciling a review of the literature on coopetition with a similar review of the literature relating to competition and cooperation. The agenda also incorporates two innovative ideas based on anecdotal evidence and personal observations. According to Bengtsson and Kock (2003), coopetition is "a situation where competitors simultaneously cooperate and compete with each other." It is 11 Keith Walley is head of the Business Management and Marketing Group, Harper

The relation between coopetition and innovation/entrepreneurship

“…Coopetition offers firms certain advantages that stem from the synergies of sharing costs, risks, economies of scale (Luo 2007;Park 2009, 2011;Osarenkhoe 2010), R&D operations (Walley 2007), and access to knowledge and external resources (Bengtsson and Kock 2000;Akdoğan and Cingšz 2012). Rodrigues et al (2011) report that coopetition can boost sales, market share, and international brand recognition and successfully enable market penetration strategies.…”

“…In many cases, coopetition offers an attractive strategy to improve the firm's competitive performance and ensure the success of radical innovations (Bouncken and Fredrich 2012). Accordingly, coopetition potentially offers competitive advantages that derive from the firm's ability to develop products or services that the same firm on its own could never develop or would take too long to do so (Ganguli 2007;Walley 2007).…”

Brand value in horizontal alliances: the case of twin-cars

“…Researchers studying horizontal alliances, in which a partner is simultaneously a competitor, have argued that it is the most beneficial relationship between competitors (Bengtsson and Kock, 2000;Walley, 2007). These strategies implemented to mitigate the market risk of entering a new product market could leverage other kinds of risks.…”

“…But competitors can simultaneously cooperate with each other in developing horizontal alliances in which the allied firms contribute similar resources in production processes or research and development (R&D) to share risks or to enjoy economies of scale: better access to raw materials, lower risks in R&D projects and general gains in productivity, for example. Horizontal alliances can be found in industries ranging from consumer goods and pharmaceuticals to automobiles and air travel (Bengtsson and Kock, 2000;Luo et al, 2007;Walley, 2007). These alliances can be used to reduce transaction costs, gain access to new technologies or resources, gain access to new geographic and product markets, achieve economies of scale and scope, reduce financial risks, integrate markets and technologies, increase the rate of new product or process development, and reduce the cost or risk of R&D (Harbison and Perkar, 1995;Freidheim 1999;Luo et al, 2007).…”

Coopetition Strategies in the Brazilian Higher Education

“…However, participants cooperate in distinct fields where they are competing (Luo, 2005). Firms collaborate to create value, away from customers, and compete to appropriate the value that has been created, near customers (Bengtsson & Kock, 2000;Walley, 2007).…”