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Traditionally the relationships between competitors in the industrial market have been based on competition. The network approach and literature about strategic alliances have provided new insights into cooperation between firms based on the value chain. The empirical findings from two in‐depth studies, the rack and pinion industry and the lining industry, show that a firm can be involved in four different types of horizontal relationships at the same time. Apart from relationships consisting of competition or cooperation, a firm can live in symbiosis by coexisting with other relationships, or being involved in a relationship simultaneously containing elements of both cooperation and competition. Consequently, a successful firm needs to focus on relationship management in order to achieve a portfolio consisting of the four types of relationships to other horizontal firms.

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This article explores the nature of the paradox inherent in coopetition; that is, the simultaneous pursuit of cooperation and competition between firms, and emanating tensions that develop at individual, organizational, and inter-organizational levels. We dissect the anatomy of the coopetition paradox to discover how it materializes by creating an external boundary (i.e., via unifying forces) and internal boundaries (i.e., via divergent forces). After explaining the coopetition paradox, we distinguish tension from paradox and submit that tension comprises both positive and negative emotions simultaneously, also known as emotional ambivalence. Finally, we recognize that emotional ambivalence in coopetition prevails at different levels, and vary in its level of intensity and persistency in relation to different contexts. We employ illustrative cases to ground our propositions empirically. This article provides understanding on concepts, expects to incite fruitful dialogue, and fuels further studies on inter-firm paradoxes.

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