Coopetition is paradoxical in that the simultaneous cooperation and competition can give rise to important synergies as well as tensions. To circumvent these tensions, scholars primarily suggest structural, separationcentred strategies. Such strategies are helpful, but incomplete, as total separation would not allow exploitation of the synergies that coopetition may offer. Based on an in-depth case study of a pioneering multi-company, cross-sector partnership, we explore how employees cope with the remaining tensions. Illustrating employees' sense-making processes, we show how they build on the organisational and the boundaryspanning task contexts and develop paradoxical frames. Juxtaposing the competitive and collaborative logics, these frames shape the employees' understanding of who they are (i.e. a nested identity) and what they should do (i.e. contextual segmentation). This juxtaposition allows the employees to navigate emerging tensions by adopting both logics (i.e. integrating behaviour) and by contextually prioritising one logic without ignoring the other (i.e. demarcating behaviour). These insights complement structural strategies with integrative, employee-centred ones and highlight contextual factors that promote such an integrative approach.

Complementing extant studies on the antecedents of firms' environmental strategy, this article focuses on the trajectories of corporate engagement in proactive environmental alliances. Specifically, we build an awareness–motivation–capability framework and analyze factors that drive the move beyond incremental pollution prevention and facilitate firms' engagement in transformative, sustainable development strategies in their alliances. Based on 212 environmental alliance‐related observations, our test results indicate limited explanatory power of regulatory pressures, but highlight the role of firms' environmental networks to sharpen their awareness to engage in transformative alliances. Further, we elaborate on the nuances and boundary conditions of firms' risk‐taking propensity, industry concentration, financial capacity and especially prior sector‐spanning experiences as motivation and capability drivers. These insights contribute to the discourse on firms' environmental strategy and alliance formation by depicting how and to what extent environment‐specific and more general firm attributes predispose them to engage in transformative rather than incremental environmental projects. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

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