The dark-side of coopetition: it’s not what you say, but the way that you do it

Crick, James M.; Crick, David; Chaudhry, Shiv

doi:10.1080/0965254x.2019.1642936

Cited by 27 publications

(30 citation statements)

References 92 publications

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“…Further, these results highlight that coopetition yields some dark-sides, which are attributed to these nonlinear (quadratic) relationships (Figure 2). Hence, the business-to-business marketing literature that has explored some of the negative aspects of coopetition (e.g., inter-firm tensions) have translated into this current paper, whereby, "too little" and "too much" coopetition should be avoided to mitigate some of these dark-sides (Park et al, 2014;Mattsson and Tidstrom, 2015;Gnyawali et al, 2016;Crick et al, 2019a). If organisations cannot manage the interplay between cooperation and competition, they might experience a range of negative performance consequences (Raza-Ullah et al, 2014;Raza-Ullah, 2019).…”

Section: Discussionmentioning

confidence: 99%

“…[Insert Figure 2 about here] Additionally, this paper has supplemented the earlier work related to the dark-sides of business-to-consumer and business-to-business marketing relationships. That is, the extant literature has explored how organisations can yield negative relationships with customers (value co-creation manifesting into value co-destruction) (Patterson and Baron, 2010;Caru and Cova, 2015;Heidenreich et al, 2015;Chowdhury et al, 2016;Zhang et al, 2018;Cabiddu et al, 2019), as well as failed relationships across interfirm strategies (Grayson and Ambler, 1999;Abosag et al, 2016;Grandinetti, 2017;Peters et al, 2018;Crick et al, 2019a). By investigating the non-linear (quadratic) links between coopetition and customer satisfaction performance, market performance, and financial performance, new evidence has emerged on the outcomes that could be harmed by firms engaging in "too little" or "too much" of such strategies.…”

Section: Discussionmentioning

confidence: 99%

“…In business-to-business marketing relationships, there will always be negative aspects pertaining to working with partners with varied objectives, close inter-personal ties, and vague contracts (Abosag et al, 2016). If dark-sides exist within business-tobusiness marketing activities (including coopetition), there can be uncertainty and distrust between the firms involved -yielding reductions in company performance (see Grayson and Ambler, 1999;Tidstrom, 2009;Fang et al, 2011;Raza-Ullah et al, 2014;Crick et al, 2019a). In this current study, the dark-side of coopetition is explored by focusing on the non-linear (quadratic) relationship between such activities and company performance (building upon Luo et al, 2007;Ang, 2008;Crick, 2019).…”

Section: The Dark-side Of Coopetitionmentioning

confidence: 99%

“…Furthermore, the outcome variables were controlled by firm size, firm age, degree of internationalisation, and regional competitiveness, as additional factors that could explain their variances (Westhead et al, 2001;Low, 2007;Cadogan et al, 2009;Felzensztein and Deans, 2013;Lai and Woodside, 2015;Crick and Crick, 2016b;Geldes et al, 2017;Felzensztein et al, 2018;Crick et al, 2019b). For clarity, the non-linear (quadratic) relationships between coopetition and the three company performance outcomes were used to delve deeper into the dark-side of such activities (building upon Tidstrom, 2009;Fang et al, 2011;Abosag et al, 2016;Chowdhury et al, 2016;Crick et al, 2019a;Raza-Ullah, 2019).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

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The dark side of coopetition: when collaborating with competitors is harmful for company performance

Crick

2019

JBIM

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Purpose Coopetition is the interplay between cooperation and competition, involving organisations sharing resources and capabilities with rival entities. Earlier work has suggested that coopetition has a linear (positive) relationship with company performance, with scarce considerations towards whether this link could have a diminishing-returns effect. Thus, this paper aims to examine the non-linear (quadratic) relationships between coopetition and three performance outcomes. Using resource-based theory and the relational view, this study is designed to evaluate the dark side of coopetition, in terms of identifying situations when such activities can be harmful for company performance. Design/methodology/approach Survey data were collected from a sample of 101 vineyards and wineries in New Zealand. After purifying the measures through a series of multivariate statistical techniques, the research hypotheses and control paths were tested through hierarchical regression. Furthermore, the statistical data passed all major assessments of reliability and validity (including common method variance). Findings Coopetition was found to have non-linear (quadratic) relationships with customer satisfaction performance, market performance, and financial performance. These results indicate that while coopetition provides organisations with new resources, capabilities and opportunities, there are some dark sides of coopetition activities. With “too little” coopetition, firms might struggle to survive within their markets, with an insufficient volume of resources and capabilities. With “too much” coopetition, companies could experience increased tensions, potentially lose intellectual property and dilute their competitive advantages. Such negative outcomes could harm their performance in several capacities. Practical implications Firms should appreciate that coopetition is a competitive strategy. In other words, regardless of how much collaboration occurs, coopetition partners are still competing entities. It is recommended that organisations should strive to engage in an “optimal-level” of coopetition, as “too little” or “too much” of such strategies can be harmful for various types of company performance. To mitigate some of the dark sides of coopetition, businesses should attempt to use all the benefits of collaborating with competitors (i.e. accessing new resources, capabilities and opportunities), but at the same time, not become dependent on rivals’ assets. Originality/value This paper develops and tests a framework examining the non-linear (quadratic) linkages between coopetition and multiple assessments of company performance. It highlights the benefits and drawbacks of businesses sharing resources and capabilities with their competitors. Contrary to prior studies in the business-to-business marketing literature, the results signify that firms need to engage in an “optimal-level” of coopetition to minimise certain dark sides, such as reduced company performance. After providing some practitioner implications, this paper ends with a series of limitations and avenues for future research.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: The Dark-side Of Coopetitionmentioning

confidence: 99%

Section: Conceptual Frameworkmentioning

confidence: 99%

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The dark side of coopetition: when collaborating with competitors is harmful for company performance

Crick

2019

JBIM

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“…through exporting), lower overheads, boost productivity and various other benefits (Kor and Mesko, 2013; Bengtsson et al , 2016; Geldes et al , 2017; Ryan et al , 2019). Nonetheless, this involves the “correct” industry experience, so that firms can pinpoint trustworthy and complementary rivals within their markets (Crick et al , 2021). Otherwise, managers and functional-level employees might make the wrong decision to work with competitors that behave opportunistically (Luo et al , 2007; Tidstrom, 2009).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

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

Crick

2020

JBIM

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Purpose Earlier work has suggested that assumptions, values and beliefs about the importance of cooperating with competitors (a coopetition-oriented mindset) should manifest into behavioural forms of coopetition, such as resource and capability-sharing activities. Yet, limited research surrounds the complexities of this link. The purpose of this study is to unpack the relationship between a coopetition-oriented mindset and coopetition-oriented behaviours under the moderating roles of industry experience and degree of internationalization, guided by resource-based theory and the relational view. Design/methodology/approach The chosen empirical context was the Canadian wine industry because wine producers are often involved in coopetition strategies and have varying degrees of internationalisation. Preliminary interview data were collected from 18 managers to shape the operationalisations. Then survey data were collected from 195 Canadian wine producers. After checking the statistical data for all major assessments of reliability and validity (together with common method variance), the hypothesised and control paths were tested through hierarchical regression. Findings A coopetition-oriented mindset had a positive and significant association with coopetition-oriented behaviours. Surprisingly, this link was negatively moderated by industry experience. Additionally, degree of internationalisation yielded a positive moderation effect. These moderators highlight situations where a coopetition-oriented mindset is (and is not) likely to manifest into coopetition activities. Practical implications If firms aim to engage in behavioural forms of coopetition, they should manage assumptions, values and beliefs associated with the advantages of collaborating with their competitors. Industry experience can limit the extent to which business’ coopetition-oriented mindsets manifest into coopetition-oriented behaviours. This could be explained by decision makers possessing information that discourages them from working with certain (untrustworthy) rivals because of the potential harmful effects on their performance. Companies should use their industry experience to avoid working with rival entities that will create negative outcomes, such as tensions (e.g., conflict, power imbalances and opportunistic behaviours), lost intellectual property and diluted competitive advantages. Nonetheless, industry experience might signify that there are more risks than rewards linked with these business-to-business marketing strategies. Higher levels of internationalisation can help firms to recognise that coopetition-oriented behaviours may lead to performance-enhancing opportunities in their overseas markets. Originality/value This investigation contributes to the business-to-business marketing literature with new evidence on how organisations can foster a coopetition-oriented mindset to engage in coopetition strategies. The negative moderation effect from industry experience highlights that knowledge of competitors’ activities can limit the extent to which coopetition-oriented behaviours are implemented. Moreover, the positive interaction effect from degree of internationalisation extends the growing body of knowledge pertaining to coopetition in an international arena. Collectively, these results show that while a coopetition-oriented mindset is a critical driver of coopetition-oriented behaviours, there are certain contingencies that can strengthen or weaken this association. Finally, by integrating resource-based theory and the relational view, this paper could explore the different forms of coopetition, in terms of organisation-wide mindsets and firm-level behaviours. This paper concludes with some managerial recommendations, alongside a series of limitations and avenues for future research.

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Coopetition Strategies and Wine Tourism Offerings

Crick,

Crick

2024

Strategic Management in the Wine Tourism Industry

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The dark-side of coopetition: it’s not what you say, but the way that you do it

Cited by 27 publications

References 92 publications

The dark side of coopetition: when collaborating with competitors is harmful for company performance

The dark side of coopetition: when collaborating with competitors is harmful for company performance

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

Coopetition Strategies and Wine Tourism Offerings

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