Journal Article

Internationalizing the Coopetition Construct

Crick, Dave, Crick, James M.

2021

Overview

Although coopetition (simultaneous cooperation and competition) is likely to enhance financial performance if effectively managed, earlier investigations have overlooked the complexities of this relationship. Most notably, understanding the impact of moderating factors can help unpack the complexity of the association between coopetition and performance. Therefore, grounded in resource-based theory and the relational view, this study focuses on the quadratic relationship between coopetition and financial performance under different degrees of export intensity and export geographical scope. Using survey responses from 101 wine producers in New Zealand, the empirical results show that coopetition has a nonlinear (inverted U-shaped) relationship with financial performance. Furthermore, export intensity and export geographical scope positively moderate this quadratic association. As such, for underresourced firms with overseas market potential, decision makers should consider the merits of combining the benefits of coopetition with those from an internationalized business model. This arrangement can help them navigate these potentially paradoxical forces, assuming they engage with trustworthy and complementary rivals in coopetition partnerships.

• Publisher: Sage Publications, Inc,SAGE Publications,SAGE PUBLICATIONS, INC