Studying coopetition in a wine industry context: directions for future research

2019

JBIM

Self Cite

107

Purpose -The purpose of this paper is to examine the moderating factors that could affect the relationship between coopetition (the interplay between cooperation and competition) and company performance.Design/methodology/approach -Under the relational view and resource-based theory, key articles surrounding coopetition were reviewed. A conceptual framework (with six research propositions) was developed to understand the nature of the relationship between coopetition and company performance.Findings -While the coopetition -company performance relationship has been wellstudied, this link could be moderated by: the competitive business environment, organizational resources and capabilities, and trust between rivals. Further, most authors have explored the linear relationship between coopetition and company performance; however, in this paper, the non-linear (inverted U-shaped) link is also conceptualized, whereby, firms might experience "too little" and "too much" coopetition in their business strategies.Practical implications -Management teams should engage in an "optimal-level" of coopetition by sharing resources and capabilities with rival firms, but not to the extent where they depend on such competitors. If firms rarely collaborate with their competitors, they risk not being able to achieve their performance objectives. Likewise, if businesses engage in excessive degrees of coopetition, there could be tensions between the rival companies involved. Also, practitioners should be aware of the factors that can improve or reduce their performance when they implement coopetition activities. By taking: the competitive business environment, organizational resources and capabilities, and trust between rivals into consideration, the themes of this paper should be used to help managers to maximize company performance (considered in multiple capacities).Originality/value -This paper is used to help scholars and practitioners to understand the factors that could help or hinder the performance outcomes of coopetition activities. By appreciating the moderating roles of: the competitive business environment, organizational resources and capabilities, and trust between rivals, managers are anticipated to provide themselves with scope to alter their coopetition activities to improve their performance. This article ends with a series of managerial implications, alongside some limitations and avenues for future research.

Section: Empirical Contexts For Studying Coopetitionmentioning

confidence: 99%

Section: Empirical Contexts For Studying Coopetitionmentioning

confidence: 99%

Section: Limitations and Avenues For Future Researchmentioning

confidence: 99%

See 1 more Smart Citation

Moderators affecting the relationship between coopetition and company performance

2019

JBIM

Self Cite

107

“…Additionally, not all industries host companies that are prepared to engage in different forms of coopetition, as competitiveness often outweighs any cooperation (Raza-Ullah et al , 2014). Hence, it is important for researchers to locate a suitable empirical context for studying coopetition, but nonetheless, theory should drive the use of a coopetition-oriented empirical context (Crick, 2018b).…”

Section: Methodsmentioning

confidence: 99%

Developing and validating a multi-dimensional measure of coopetition

2019

JBIM

Self Cite

Purpose Coopetition, namely, the interplay between cooperation and competition, has received a good deal of interest in the business-to-business marketing literature. Academics have operationalised the coopetition construct and have used these measures to test the antecedents and consequences of firms collaborating with their competitors. However, business-to-business marketing scholars have not developed and validated an agreed operationalisation that reflects the dimensionality of the coopetition construct. Thus, the purpose of this study is to develop and validate a multi-dimensional measure of coopetition for marketing scholars to use in future research. Design/methodology/approach To use a highly cooperative and highly competitive empirical context, sporting organisations in New Zealand were sampled, as the key informants within these entities engaged in different forms of coopetition. Checks were made to ensure that the sampled entities produced generalisable results. That is, it is anticipated that the results apply to other industries with firms engaging in similar business-to-business behaviours. Various sources of qualitative and quantitative data were acquired to develop and validate a multi-dimensional measure of coopetition (the COOP scale), which passed all major assessments of reliability and validity (including common method variance). Findings The results indicated that coopetition is a multi-dimensional construct, comprising three distinct dimensions. First, local-level coopetition is collaboration among competing entities within a close geographic proximity. Second, national-level coopetition is cooperation with rivals within the same country but across different geographic regions. Third, organisation-level coopetition is cooperation with competitors across different firms (including with indirect rivals), regardless of their geographic location and product markets served. Indeed, organisation-level coopetition extends to how companies engage in coopetition in domestic and international capacities, depending on the extent to which they compete in similar product markets in comparison to industry rivals. Also, multiple indicators were used to measure each facet of the coopetition construct after the scale purification stage. Originality/value Prior coopetition-based investigations have predominately been conceptual or qualitative in nature. The scarce number of existing scales have significant problems, such as not appreciating that coopetition is a multi-dimensional variable, as well as using single indicators. In spite of a recent call for research on the multiple levels of coopetition, there has not been an agreed measure of the construct that accounts for its multi-dimensionality. Hence, this investigation responds to such a call for research by developing and validating the COOP scale. Local-, national- and organisation-level coopetition are anticipated to be the main facets of the coopetition construct, which offer several avenues for future research.

“…In terms of an empirical context, it is important to study coopetition an industry (or industries) that is both highly cooperative and highly competitive (Bengtsson and Kock, 2000; Rusko, 2011; Bengtsson and Johansson, 2014). That is, coopetition is the interplay between cooperation and competition, meaning that it is important to investigate such activities where cooperative and competitive forces are at play (Crick, 2018c). For example, academics have studied coopetition in agricultural markets, such as the wine industry (Crick, 2015; Granata et al , 2018).…”

Section: Directions For Future Researchmentioning

confidence: 99%

Incorporating coopetition into the entrepreneurial marketing literature

2019

JRME

Self Cite

Purpose The purpose of this paper is to extend the entrepreneurial marketing literature to account for coopetition (the interplay between cooperation and competition). This paper is also designed to highlight the research gaps surrounding coopetition, so that academics, working at the marketing/entrepreneurship interface, can undertake more investigations linked with this topic. Design/methodology/approach The entrepreneurial marketing literature was reviewed to develop a conceptual framework, guided by three research propositions, examining the antecedents and consequences of coopetition, as well as the boundaries of the coopetition–organisational performance relationship. Findings Coopetition activities are driven by an organisation-wide coopetition-oriented mindset – the degree to which managers and employees believe in the importance of cooperating with competitors. Also, coopetition can help entrepreneurs access new resources and capabilities from their competitors; however, “too much” coopetition can lead to tensions between such rival firms. Additionally, it is proposed that the relationship between coopetition activities and organisational performance is moderated by competitive intensity (a facet of the competitive business environment). That is, with higher levels of competitive intensity, entrepreneurs are less likely to improve their performance from coopetition activities. That is, the competitive business environment can affect the delicate balance between the forces of cooperativeness and competitiveness. Originality/value Entrepreneurial marketing research has concentrated on individualistic perspectives concerning how entrepreneurs operate their businesses. In this viewpoint, the competitive assumptions of the marketing/entrepreneurship interface are extended to account for coopetition. This paper also outlines the areas within the coopetition literature that entrepreneurial marketing scholars should appreciate. Specifically, entrepreneurial marketing scholars are recommended to examine the antecedents and consequences of coopetition, coupled with the moderating role of competitive intensity (a facet of the competitive business environment) in the coopetition–organisational performance relationship. This paper ends with a recommended methodology for academics to test the conceptual framework in future empirical research.