Horizontal Versus Vertical Coopetition: The Tunisian Manufacturing Industry

Abstract

By opting for coopetition strategy, some companies prefer the horizontal one while others opt for the vertical. Furthermore, some coopetitions are rather aggressive, while others are rather cooperative. Nevertheless, the reasons for using one or the other of these strategies remain still ambiguous.
 This article aims to explain the reasons, both internal and external, for the use of each type of coopetition and its nature. By adopting a quantitative hypothetico-deductive approach, and through a sample of Tunisian industrial companies, this study confirms that the need for strategic capabilities holds the strongest weight that the competitive intensity in the explanation of the coopetition type and its nature.

The Role of Coopetition in Fostering Innovation and Growth in New Technology-based Firms: A Game Theory Approach

“…We specifically focus on studies that, regardless of their sectoral focus -from technology startups to established manufacturing firms -, provide insights into the strategic utilization of coopetition for overcoming common challenges in innovation and market positioning. For instance, Corbo et al (2023) in the technology sector and Zgarni (2019) in the manufacturing industry both illustrate how coopetition fosters innovation through shared knowledge and resources, despite their differing contexts. This comparative analysis not only bridges the sectoral divides but also underscores the universal applicability and benefits of coopetition strategies, thus directly supporting our study's premise on the role of coopetition in driving innovation and growth within new technology-based firms.…”

Exploring the Effects of Inter-Firm Coopetition on Firm Performance

“…Literature categorises two factors that may determine the use of coopetition strategies; these are external and internal factors (Zgarni, 2019). There are four external factors and include; firstly, environmental changes, changes in regulation, and uncertainty that makes firms to find ways of survival and growth; secondly, shortened product life cycles that require quick and efficient development of new products and services leads to the need to pool resources for innovation, development and delivery of products ; thirdly, industry concentration/convergence which both increases competition and provides opportunities for growth which were not previously available; and fourthly, sector maturity which requires a rejuvenation of the product life cycle through coopeting with other parties (Cygler et al, 2018;Park et al, 2014;Robert et al, 2018).…”

“…Internal factors mainly involve the need for survival and perceived mutual benefits. The achievement of those benefits would be through acquisition of expertise, capacities or resources from industry players (Zgarni, 2019).…”

The Nexus Among Inter-Firm Coopetition, Cooperation Coopetition and Digital Financial Inclusion: A Conceptual Analysis

“…Literature categorises two factors that may determine the use of coopetition strategies; external and internal factors (Zgarni, 2019). There are four external factors and include; firstly, environmental changes and uncertainty that makes firms to find ways of survival and growth.…”

“…Thirdly, industry concentration/convergence which both increases competition and provides opportunities for growth which were not previously available, and fourthly, sector maturity which requires a rejuvenation of the product life cycle through coopeting with other parties (Cygler et al, 2018;Park et al, 2014;Robert et al, 2018). Internal factors mainly involve the perceived mutual benefits and the achievement of those benefits through acquisition of expertise, capacities or resources from industry players (Zgarni, 2019).…”