Untangling the Rise of Coopetition: The Intrusion of Competition in a Cooperative Game Structure

Abstract

Strategy research on inter-firm cooperation has been commonly affected by a collaborative bias, implicitly assuming that firms interact among each other on the basis of fully converging interests and goals. Yet, plenty of empirical evidence shows that cooperation is affected by the intrusion of competitive issues and that consequently results in a game structure that actually moves away from the ideal circumstance of complete convergent interests. The purpose of this paper is twofold. First, it proposes the notion of cooperation as a truly coopetitive game, where firms interact among each other on the basis of a partially convergent interest structure. Second, it develops a series of propositions linking the rise of coopetition to a set of, respectively, environment-related and firm-related factors in order to explain the drivers of the intrusion of competitive issues within a cooperative game structure. The study eventually provides relevant implications for strategy research that we discuss in the final section. 32

Coopetition Strategies in the Brazilian Higher Education

“…This is associated with a lack of recognition of competitive forces in a cooperative relationship (Padula & Dagnino, 2007) or an understanding of those facts only as negative influences (Bengtsson et al, 2010). Similar to the competitive approach, the cooperative perspective is incomplete and can be improved through the concept of coopetition.…”

“…Cooperation and coopetition strategies complement the competitive paradigm through the generation of new forms of intra-organizational governance and expansion of grouping alternatives between organizations (Brandenburger & Nalebuff, 1995;Padula & Dagnino, 2007). Consquently, the traditional dichotomy between competition and cooperation is no longer appropriate to understand inter-organizational relations (Yami & Le Roy, 2010).…”

“…The premise of the competitive paradigm is the dispute between agents for the same resources that cannot be achieved simultaneously. This motivates behavior for individual gains and results in counter-movements, which are intensified by challenges posed by competition or opportunities to improve market position (Padula & Dagnino, 2007).…”

“…The main implication of the cooperative paradigm is that interdependence between firms generates a positive sum, in which the performance of a participant is directly related to the performance of another, which emphasizes the development of joint actions to achieve mutual benefits (Jarillo, 1993;Padula & Dagnino, 2007). It is a strategy based on trust and harmony in relationships (Bengtsson & Kock, 1999) that has the foundation of concern and commitment to the other party (Das & Teng, 1998).…”

“…Dispute by the agents for the same resources that cannot be achieved individually (Padula & Dagnino, 2007). Maximization of individual interests (Bengtsson & Kock, 2000).…”