Microfoundations of dynamic coopetition capabilities in firms from a microbrewery cluster

Abstract

PurposeThe objective of this research is to analyze the microfoundations of dynamic capabilities used by microbreweries in Porto Alegre (Brazil) in their coopetition strategies.Design/methodology/approachA case study with a qualitative approach was developed. Data were collected during interviews with owners of 11 microbreweries, via analysis of documents and nonparticipatory observation. The authors used the content analysis technique to infer knowledge.FindingsThe authors identified the microfoundations of dynamic coopetition capabilities including collective purchases, shared distribution expenses, shared production, education of consumers and other beer producers, group interaction and a business roundtable with entrepreneurs from the food and drink sector in the hospitality industry.Research limitations/implicationsThe authors developed a framework that considers the relationship between the microfoundations of dynamic capabilities and coopetition regarding the paradox between competition and cooperation. It is relevant to identify different actors’ movements and the potential outcomes of coopetitive strategies, which yield a competitive advantage for the cluster.Practical implicationsTogether, the microfoundations of dynamic capabilities contribute to the competitive advantage of the cluster.Originality/valueThe study highlights how small companies can jointly develop competitive advantage in a market dominated by a large company.

Tensions in Coopetition between Gypsy and Non-gypsy Breweries in the Light of Actor-network Theory

“…Basically, external tension refers to the difficulties top-level managers play out in multilateral coopetition through a combination of cooperation-inducing and competition-inducing mechanisms (Geurts et al, 2022). In contrast, internal tension refers to tensions between generalists (actors who contribute a range of resources, bits of knowledge, and experiences through dispersed efforts over time) and specialists (actors who contribute few resources, bits of knowledge, and experiences in a concentrated effort, often at one point in time) with divergent views and opinions inside the same organization Geurts et al, 2022;Raza-Ullah et al, 2014;Silva et al, 2023). Therefore, coopetition enables companies (or individuals) to pursue difficult yet highly rewarding opportunities that cannot be attained of singular format.…”

“…Coopetition is based on simultaneous cooperation and competition between companies in the same segment (Silva et al, 2023). This dynamic relationship alters and outlines the balance and strength of cooperative and competitive interactions (Dahl, 2014;Padula & Dagnino, 2007).…”

“…Despite being a topic that is currently widely studied, as well as the tension between companies that, according to Tidström (2014), is "natural in coopetitive business relationships that simultaneously involve cooperation and competition," (p. 261) some gaps have not yet been deepened, such as tensions between competition and cooperation among small companies (e.g., Lundgren-Henriksson & Tidström, 2021). Despite this, research opportunities exist to focus on how companies can deal with the tensions and paradoxes that arise in coopetition (Silva et al, 2023).…”

“…The craft microbreweries sector exemplifies the coopetition strategy (Kraus et al, 2019). The collaboration, co-sharing, interdependence and complementarity of individuals, technologies, processes, and organizations that operate in craft beer production provides an ideal context to study this phenomenon (Silva et al, 2023) since this is a common strategy among them (Monticelli et al, 2018) -more analysis of the balance between stresses and performance (Raza-Ullah et al, 2014). Previous studies have connected dynamic capabilities, processes, routines, and governance to coopetition (Silva et al, 2023).…”

“…The collaboration, co-sharing, interdependence and complementarity of individuals, technologies, processes, and organizations that operate in craft beer production provides an ideal context to study this phenomenon (Silva et al, 2023) since this is a common strategy among them (Monticelli et al, 2018) -more analysis of the balance between stresses and performance (Raza-Ullah et al, 2014). Previous studies have connected dynamic capabilities, processes, routines, and governance to coopetition (Silva et al, 2023). On the other hand, much of the potential for gaining coopetition advantages lies in the recognized types of knowledge, culture, processes, apprehension, interactions, and tensions between multiple actors (Bouncken et al, 2015;Lundgren-Henriksson & Tidström, 2021;Tidström, 2014).…”