Mitigating coopetition tensions: The forgotten formation stage

Abstract

Coopetition entails tensions inherent to collaboration with competitors. This paper focuses on the coopetition formation stage and its effects on the development of tensions. We performed interviews with executives of coopeting firms, create case studies of organizations that initiate and execute coopetition agreements for other firms, and then study firms engaged in mutual coopetition. While this study confirms previous findings that coopetition formation can be deliberate or emergent, it also reveals that the two approaches differ in strategy development patterns, which influence the type and intensity of tensions, as well as the scope and sustainability of the coopetition. The deliberate approach mainly includes tensions due to lack of trust, knowledge exposure and cultural gaps, and the scope and timeframe of the coopetition are clearly delimited. Previous acquaintance and existing trust correspond to a lower intensity of tensions for the emergent approach, and the scope and timeframe are open for extension.

How intentional are the employability strategies of Higher Education Institutions?

“…Empirical analyses confirm the hypothesis of a continuum of hybrid solutions between the extreme poles of planned and emergent strategies depending on the conditions of the internal and the external environment (see, e.g., Idenburg, 1993;Slevin and Covin, 1997;Neugebauer et al, 2016). An emergent approach in strategy formation helps reducing tensions among involved players (Efrat et al, 2022), but only when the new strategy gets embedded in the organisational context. To this aim Mirabeau and Maguire (2014) stress the need of legitimating emerging strategies by committing organisation members and adapting the organisational structure by creating new teams, new procedures and routines, and new organisational objectives.…”

Untangling Coopetitive Dynamics: A Microanalysis of Collaborative and Competitive Tensions in an Ecosystem

“…Coopetition, a blend of competition and cooperation, is a strategic and dynamic process that significantly impacts ecosystem value creation and governance (Garri, 2021;Efrat et al, 2022). It is rooted in a paradox involving simultaneous collaborative and competitive interactions among economic actors (Bouncken et al, 2015;Garri, 2021).…”

“…These tensions can lead to cognitive dissonance and operational difficulties, affecting overall performance and innovation outcomes. The literature stresses the importance of trust, governance mechanisms, and knowledge brokers in navigating these tensions effectively (Chiambaretto et al, 2019;Efrat et al, 2022). Effectively managing these tensions is vital to leveraging coopetition for enhanced innovation outcomes (Hückstädt, 2022).…”

“…A coopetitive mindset is crucial for balancing competitive pressures with collaborative opportunities that influence firm decisions, particularly under performance challenges and technological uncertainties (Zheng et al, 2023). This paradoxical nature of coopetition leads to tensions at multiple levels -inter-organizational, intra-organizational, and individual -affecting knowledge sharing, resource distribution, and psychological challenges (Efrat et al, 2022). The understanding of coopetition at multiple levels expands the concept of coopetition, identifying specific tensions, and highlighting the role of knowledge brokers and governance mechanisms (Amatta et al, 2022;Chiambaretto et al, 2019;Corbo et al, 2023;Foguesatto et al, 2021), and the importance of balancing collaboration and competition.…”

“…Tensions in coopetition arise from the conflicting goals of collaboration and competition. These tensions can manifest as cognitive difficulties and operational challenges, potentially leading to what is referred to as the 'dark side of coopetition' (Chiambaretto et al, 2019;Efrat et al, 2022). Managing these tensions is crucial for the stability and success of coopetitive relationships.…”