Managing tensions in coopetition

Tensions are natural in coopetitive business relationships that simultaneously involve cooperation and competition. The purpose of this study is to investigate how tensions are managed in coopetitive business relationships and examine the potential outcomes of the management of such tensions. The study will focus on various kinds of coopetitive relationships and how the management of the different tensions produces specific outcomes. The empirical study is based on comparative case study research on coopetitive business networks that features two different kinds of cases. The findings of the study contribute to coopetition research by identifying several new perspectives on tensions. Different levels of cooperation and competition in a coopetitive relationship as well as other underlying issues cannot alone determine tensions, but aspects such as the management of tensions are crucial. Most tensions are managed by using styles of competition and avoidance and result in mixed outcomes, which implies both positive and negative perceptions.     

The coopetition paradox and tension: The moderating role of coopetition capability

In this study, we apply a paradox perspective on coopetition to investigate the effects of coopetition paradox on managers' experience and perception of coopetitive tensions, and the role of coopetition capability in managing such tensions. We propose a theoretical model to posit that the intensity of coopetition paradox positively associates with managers' experience of external tension, which in turn lead them to perceive internal tension. Further, coopetition capability plays a dual role—moderates the relation between coopetition paradox and external tension, and reduces internal tension. We tested hypotheses on a representative multi-industry sample of 1532 firms in Sweden and the results confirm them. Our study contributes to understanding the critical role of coopetition capability that enables firms to maintain a moderate level of tension regardless of the intensity of coopetition paradox.     

Organizing coopetition for innovation: The case of wireless telecommunication sector in Europe

Prior research highlighted the prevalence of coopetition as a strategy for innovation in high-tech industries for several reasons but the link between forms of coopetition and innovation is still understudied. In order to fill this gap in the literature, this study attempts to answer the following question: which form of coopetition favors which type of innovation? The results of an embedded case study approach of five Celtic-Plus projects (European Eureka Program) in the wireless telecommunication sector show that two forms of coopetition exist: multiple and dyadic. While multiple coopetition is successfully pursued for radical innovation, dyadic coopetition is more suitable for incremental innovation. Different innovation objectives lead to different levels of value creation/appropriation tensions between coopetitors. In order for competitors to pursue radical or incremental innovation successfully, different levels of social capital related to different choices of partners are needed. The role of social capital levels as a moderating factor between value creation/appropriation tensions and innovation type is discussed in detail. The study proposes a conceptual model that links coopetition strategy motives to the types of coopetition and their results in terms of radical or incremental innovation. Finally, a framework that helps firms to balance between multiple/dyadic–vertical/horizontal collaboration according to the levels of value creation/appropriation tensions and social capital is proposed.     

Conceptualizing coopetition as a process: An outline of change in cooperative and competitive interactions

This study discusses how and why cooperative interactions between competitors change as their coopetitive relation develops over time. Such cooperative interactions are conceptualized to depend on the existence of agreements between competitors, or rules for cooperating and competing, which are formulated based on past experiences from mutual interaction. The purpose is to develop a framework which explains change in coopetitive interactions and particularly in inter-organizational rules for interaction. This framework distinguishes three mechanisms underlying change: inter-organizational learning manifested in cooperation between competitors, intra-organizational learning based on confrontations between conflicting experiences among organizational members, and the development of the external environment. Based on this generic framework, three scenarios are developed that delineate the nature of the change process in relations characterized respectively by strong competitive and cooperative dimensions, and in relations characterized by equal and moderately strong levels of cooperation and competition. These scenarios further suggest that rules for interaction change in a predefined or discontinuous manner depending on the balance and strength of the cooperative and competitive interactions.     

Mapping the perspectives of coopetition and technology-based strategic networks: A case of smartphones

The aim of this study is to introduce and rearrange various coopetition perspectives and consider their implications in the context of a technology-based case study example from the smartphone industry and especially with the state of strategic networks between smartphone producers and operating systems at one chosen moment (autumn 2012). The case study analysis is based on a strategic map of the (technical) coalitions of firms (cf. Näsi et al., 2001). The most important introduced coopetitive features are present in the studied case. This study emphasizes in the literature review the dichotomy between contextual and procedural coopetition. However, this dichotomy is not solid in practice according to the studied case: the same firm might simultaneously have both contextual and procedural features. The study reveals this overlapping and multidimensional character of coopetition generally and its technological dimension in practice, and the general need to continue to study these coopetitive features. The study shows that contemporary theoretical typologies and frameworks of coopetition require experiments in order to direct the coopetition discussions toward the practical phenomena of business.     

Walking the tight rope of coopetition: Impact of competition and cooperation intensities and balance on firm innovation performance

This study empirically investigates an important question in the coopetition literature: to what extent does coopetition impact a firm's innovation performance? With a focus on the intensity of competition and intensity of cooperation of a focal firm with its alliance partners, our theory proposes that a moderate level of competition with alliance partners is more beneficial than a very high or a very low level of competition. We further develop the concept of “balance” in coopetition and examine how the interplay of competition and cooperation and the balance between the two matter for innovation performance. Results from our empirical study using data from the semiconductor industry show that competition and cooperation intensities have non-monotonic positive relationship with firm's coopetition-based innovation performance. Further, balanced coopetition (i.e., when competition is moderately high and cooperation is high) has a positive effect on innovation performance. A key contribution of this paper is the conceptualization and empirical demonstration of the effects of various aspects of coopetition such as competition dominant, cooperation dominant, and balanced coopetition on innovation performance.     

Sources and management of tension in co-opetition case evidence from telecommunications satellites manufacturing in Europe

Co-opetition is filled with tension due to inherent contradictory and opposing forces. In this research, we develop a multi-level conceptual framework that helps to understand key drivers of tension in co-opetition and key approaches to managing the tension. We combine literature-based conceptual arguments and insights from in-depth study of one exemplar case of co-opetition between Astrium (EADS group) and Thales Alenia Space (Thales group) within the sector of telecommunications satellites manufacturing in Europe. Our findings highlight multiple sources of co-opetitive tension at different levels. Further, our research shows that a mixed organization based on both separation and integration of competition and cooperation is helpful to understand and effectively manage tension in co-opetition. This paper offers case-based rich insights on the sources and management of tension and has important implications for the design and conduct of future empirical research.     

Managing tension in coopetition through mutual dependence and asymmetries: A longitudinal study of a Norwegian R&D alliance

Strategic alliances between competitors (coopetition) is perceived to be full of tensions that needs to be managed. This study explore the evolution of a Norwegian coopetition alliance, through how firms handle tensions over time. The study finds that the firms experience a mutual dependence towards one another and that this dependence evolves over time. In the early phases of a coopetition alliance firms handle tension by relying on a structural dependence with their partners whereas firms move towards a more harmonious relationship with their partners by building a psychological dependence through trust and generosity. Further, the results indicate these dependencies might reduce the possible tensions related to asymmetries in size and knowledge between firms.     

The fog of feedback: Ambiguity and firm responses to multiple aspiration levels

This study examines firms' responses to performance assessments relative to multiple aspiration levels. We argue that comparisons of performance to multiple aspiration levels over time affects the interpretative clarity of feedback and, consequently, shapes a firm's responsiveness. We further conceptualize the relationship between performance relative to social and historical aspirations as ambiguous, inconsistent, and consistent performance feedback. Empirically, we examine the effects—on firms' responsiveness—of weak, negative, and positive correlations between performance relative to social and historical aspirations, where responsiveness is measured in terms of new product introductions. We find that both inconsistent and consistent feedback increase a firm's responsiveness, whereas ambiguous feedback dampens responsiveness. Our focus on this type of feedback ambiguity is novel, and it establishes the functional form of the relationship between feedback clarity/ambiguity and responsiveness. This paper augments the behavioral theory of the firm and research on performance feedback; it also extends previous work on ambiguity in strategic decision making. Copyright © 2014 John Wiley & Sons, Ltd.     

The interplays of coopetition,conflicts, trust,and efficiency process innovation in vertical B2B relationships

In this study, we examine the interplays among coopetition, conflicts, trust, and efficiency process innovation in vertical business-to-business (B2B) relationships. We posit that, in vertical B2B relationships, coopetition is positively associated with efficiency process innovation. Such association is also mediated by conflicts (i.e., affective and cognitive), thus resulting in the indirect effects of vertical coopetition on efficiency process innovation through affective and cognitive conflicts. In addition, we hypothesize that the conflict-based indirect effects are contingent on the trust level in the coopetitive relationships. We then empirically test the proposed hypotheses, using survey data collected from two international trade fairs. The results yield support for the positive association between vertical coopetition and efficiency process innovation. The mediating role of affective conflict in the indirect effect of vertical coopetition on efficiency process innovation is also supported, but that of cognitive conflict is not. Finally, the results indicate that trust moderates the indirect effect of vertical coopetition on efficiency process innovation through cognitive conflict but not through affective conflict. The implications of our findings for future research and managerial practices are also discussed.     

The effects of emotional intelligence on job performance and life satisfaction for the research and development scientists in China

To demonstrate the utility of the emotional intelligence (EI) construct in organizational studies, this study focuses on the effect of EI on job performance among research and development scientists in China. We argue that EI is a significant predictor of job performance beyond the effect of the General Mental Ability (GMA) battery on performance. This predictor effect is supported by results on a study of research and development scientists working for a large computer company in China. Our results also show that a self-reported EI scale developed for Chinese respondents, the WLEIS, is a better predictor of job performance than the scale developed in the U.S., the MSCEIT. Implications of the findings are discussed.

The involvement and influence of emotions in problematic business relationships

This paper discusses emotions as mediators in business-to-business relationships which is an understudied topic. Yet within consumer marketing, emotions have been widely studied, and calls have been made for business relationship research to take account of managers' emotions. This study addresses the gap by firstly establishing the relevance of emotions in problematic business relationships and secondly showing how emotions are a major component in determining the outcomes of the problematic relationships. Interview data in the form of narratives describing problematic relationships is analyzed and identifies both the emotions experienced by participants and their role in the future course of the business relationship.     

The persistence of abnormal returns at industry and firm levels: Evidence from Spain

We apply structural equation models to longitudinal data on profits of firms within industries to study the persistence of abnormal returns. We obtain a two‐way variance decomposition for abnormal returns: at firm vs. industry levels, and at permanent vs. transitory components. This decomposition enables us to assess the relative importance of the fundamental components of abnormal returns discussed in the literature. The method is applied to a panel of 5,000 Spanish firms observed over the period 1995–2000. We conclude that: (a) there are significant and permanent differences between profit rates at both industry and firm levels; (b) variation of abnormal returns at firm level is greater than at industry level; and (c) firm and industry levels do not differ significantly regarding rates of convergence of abnormal returns. Copyright © 2007 John Wiley & Sons, Ltd.     

Reconciling the paradox of supply-side and demand-side strategies in industrial innovation

Abernathy and Utterback [Abernathy, W.J. & Utterback, J.M., (1978). Patterns of industrial innovation. In Burgelman, R.A., Maidique, M.A. and Wheelwright, S.C., Strategic management of technology and innovation: 149-155. McGraw Hill.] argued that successful firms seek a functional product performance strategy in the early stage of industrial innovation and seek a cost reduction strategy in the late stage. However, Adner and Levinthal [Adner, R. & Levinthal, D., (2001). Demand heterogeneity and technology evolution: Implications for product and process. Management Science, 47(5), 611-628.] argued firms enhance functionality or reduce prices to a level that corresponds to consumer willingness to pay in the early stage, and increase performance at a relatively stable product price (i.e. new strategy they claimed) in the late stage. This study reconciles this paradox of choosing strategies using an integrative framework for theory development. Generated from the framework, a numerical indicator of performance/cost ratio directs firm strategy choices in industrial innovation when an environment changes. This study justifies the popular use of performance/cost ratio in practices as primary criteria to predict the winning dominant standard from a value creation perspective and elucidates an evolution of industrial innovations by using a three-year field study.     

The risk‐return paradox for strategic management: disentangling true and spurious effects

The concept of risk is central to strategy research and practice. Yet, the expected positive association between risk and return, familiar from financial markets, is elusive. Measuring risk as the variance of a series of accounting‐based returns, Bowman obtained the puzzling result of a negative association between risk and mean return. This finding, known as the Bowman paradox, has spawned a remarkable number of publications, and various explanations have been suggested. The present study contributes to this literature by showing that skewness of individual firm' return distributions has a considerable spurious effect on the empirically estimated mean‐variance relationship. I devise a method to disentangle true and spurious effects, illustrate it using simulations, and apply it to empirical data. It turns out that the size of the spurious effect is such that, on average, it explains the larger part of the observed negative relationship. My results might thus help to reconcile mean‐variance approaches to risk‐return analysis with other, ex‐ante, approaches. In concluding, I show that the analysis of skewness is linked to all three streams of literature devoted to explaining the Bowman paradox. Copyright © 2008 John Wiley & Sons, Ltd.     

Achieving new product success via the synchronization of exploration and exploitation across multiple levels and functional areas

While ambidexterity has been identified as a critical prerequisite for new product success, synchronizing exploration and exploitation in practice represents a multifaceted enigma. Ambidexterity is not in reality limited to a single organizational level, or a specific functional area. Firms become ambidextrous when corporate-level exploratory and exploitative strategies interact with operational-level exploratory and exploitative capabilities across multiple functional areas. Data from a sample of technology-intensive industrial firms using a multi-informant design shows that operational-level exploratory and exploitative product innovation and marketing capabilities allow firms to implement corporate-level exploratory and exploitative strategies in the context of new product development (NPD). Further, the findings reveal that the integration of exploratory product innovation–exploratory marketing and exploitative product innovation–exploitative marketing is significant for the implementation of exploratory and exploitative strategies over deploying each capability in isolation. Finally, we show that the implementation of exploratory and exploitative strategies drives new product success through creating distinct positional advantages to customers in the form of both differentiation and cost efficiency. These positional advantages help to better explain the effects of exploratory and exploitative capabilities on new product market performance.     

物业管理企业的服务层次定位

文章阐述物业管理企业服务层次的概念,如何针对物业所有人与使用者的不同情况,准确地进行服务层次的定位,指出服务层次定位是否准确将是物业管理企业提高收益水平和最大限度地满足业主要求的关键所在。     

Trust-opportunism paradox,relationalism, and performance in interfirm relationships: evidence from the retail industry

Building on recent theoretical work documenting that interorganizational relationships (IORs) are ‘multifaceted and multiplex’ we investigate, from the agent's perspective, the joint effects of trust and opportunism in fostering (or inhibiting) relationalism, which, in turn, is predicted to influence performance within interfirm exchange relationships. Based on longitudinal survey data on 409 catalog intermediaries affiliated with a large retail firm, we found strong support for most of the hypothesized relationships. Implications for future research are offered. Copyright © 2008 John Wiley & Sons, Ltd.     

Supplier representative activities and customer perceived value in complex industrial solutions

The study of value delivery through complex industrial solutions involves a service-rich deployment of resources, many of which are human. Despite this realization, few studies consider the activities of specific actors in this service-dominant context. Through an exploratory netnography of ten online community discussion boards, this study investigates the link between the activities of supplier representatives and the effects on customer perceived value in complex industrial solutions. The findings reveal four major categories of activity (communication, planning, risk management and coordination) as important sources of intangible value (conceptualized as emotional, social and functional outcomes). The data shows, however, that activities must be executed in a timely, accurate, appropriate and value-added manner. The study compliments research in complex industrial solutions through explicit consideration of activities and their relationship with perceived value from a supplier perspective.     

Research notes and communications first-mover effects in multiple dynamic markets

A study of first-mover effects in semi-submersible oil-drilling suggests that first-entrants in international markets maintain higher market share after controlling for market localization and life cycle. Examining only surviving entrants at a point in time inflates this pioneering-market share relationship. Pioneering has an inter-market effect on market share, greater than the intra-market effect. Multinational firms may use market pioneering to resist localization pressures and enhance survival in foreign markets. The study suggests the importance of careful first-mover identification and market definition, a wider examination of first-mover effects over multiple markets, and control for measurement timing.