Product innovation through coopetition in alliances: Singular or plural governance?

This study researches how firms can improve their product innovation in coopetition alliances through alliance governance. Our survey-based study of 372 vertical alliances in the medical device industry contributes to a clarification of prior studies' contrasting findings on product innovation when coopetition is present in alliances. Our results show that the singular use of relational governance improves product innovativeness in vertical alliances that experience growing levels of coopetition. In contrast, the singular use of transactional governance reduces product innovativeness with growing coopetition. When firms apply both relational and transactional governance as plural governance, vertical coopetition alliances get access to new ways to improve their product innovativeness.     

The changing importance of affective trust and cognitive trust across the relationship lifecycle: A study of business-to-business relationships

The purpose of this paper is to examine affective trust and cognitive trust and their effects on business relationship outcomes. Within a relationship marketing framework, the influence of affective trust and cognitive trust on the success of business relationships at the early and mature phases of the relationship lifecycle is examined. Both affective and cognitive forms of trust are demonstrated to be multidimensional constructs that indirectly influence relationship performance via the mediating variables commitment and liking.The development and use of five elements of trust to explain relationship performance extends existing understanding of relationship marketing. By combining five elements of trust (three cognitive and two affective) and testing them in two different relationship lifecycle phases, insights are generated into how a relationship can succeed. The model tested in this paper highlights the importance of affective trust in the early phase and cognitive trust in the mature phase of the relationship lifecycle. Further, the mediating roles of commitment and liking between trust and relationship performance are also developed. Hence, the research increases understanding of how relationships evolve, in particular the role of affective trust and cognitive trust in influencing relationship performance.The context of this research is business-to-business relationships in small and medium enterprises. A survey of 458 businesses people is used to evaluate both the early and mature relationship lifecycle phases. The data are analysed with structural equation modelling where the basic structural model testing is extended with multigroup analysis.     

Conceptualizing and modeling interpersonal trust in exchange relationships: The effects of incomplete model specification

The importance of interpersonal trust in exchange relationships is well-established, and trust is known to have two important and distinct underlying forms, one cognitive, the other affective. Despite this, trust studies often model only the cognitive task-related form and omit the affective form. This article achieves two main objectives. First it demonstrates that interpersonal trust is best considered a bidimensional construct consisting of both cognitive and affective components, and that omitting either form of trust from empirical studies is a conceptual and specification error. Second, we reveal that both forms explain a large amount of variance in the quality of exchange relationships. Also, studies omitting affective trust ignore the more potent of the two trust dimensions. In addition, models examining only one form of trust strongly inflate the apparent effects of that form, and are diagnostically unsound. Our results have important theoretical and managerial implications regarding the conceptualization and measurement of interpersonal trust, and its role in improving the effectiveness of exchange relationships.     

Top management team conflict and exploratory innovation: The mediating impact of market orientation

Drawing on upper echelon theory, this study examines the linkage of top management team (TMT) conflict to exploratory innovation and the mediating impact of market orientation (MO) on the linkage. It finds that cognitive conflict in TMTs positively affects exploratory innovation, while affective conflict has a negative effect. Moreover, MO is a critical conduit through which TMT conflict plays its role in exploratory innovation. These findings advance our knowledge on the antecedents of exploratory innovation, improve our understanding about the linkage of TMT conflict to innovation, and identify additional antecedents and consequences for MO.     

Coopetition and trust: What we know,where to go next

This paper offers a systematic review of the main findings concerning the role of trust in coopetitive interactions. It adheres to a multilevel conceptualization of trusting relationships in coopetition, analyzing the manifestations of trust on the interpersonal, intergroup, interorganizational and inter-network level. It also applies a dynamic perspective on trust, investigating its antecedents, development processes and outcomes in coopetitive collaboration. Finally, it suggests some directions for future research of trusting relationships forged among coopetitors.     

Fundamental transformations of trust and its drivers: A multi-stage approach of business-to-business relationships

This research tests a multistage model of trust in business-to-business (B2B) relationships. The model contains three forms of trust, each with unique drivers and consequences for buyer–supplier relationships. An exploratory qualitative study (N = 38) and four quantitative studies (N_Total = 616) validate the distinct stages (N1 = 140, N2 = 144, N3 = 152) and provide an overall test of the model (N4 = 180), using structural equation modeling techniques. The results support the proposed modeling of the stages and highlight a positive effect of reputation on calculative trust. Conflict resolution, communication, and sympathy positively affect cognitive trust. However, shared values do not significantly drive affective trust. Interdependence also exists among the three trust forms, both directly and indirectly. That is, calculative trust does not affect investments in relationship or confidential communication, but cognitive trust influences these constructs indirectly, through the mediation of affective trust. Affective trust also leads directly to greater investments in relationship and generates additional confidential communication.     

Adding co-creation as an antecedent condition leading to trust in business-to-business relationships

Trust enjoys wide acceptance among scholars as a key facilitator of inter-organisational relationship development, and successful relationship development demands an understanding of what drives the propensity to trust between organisations within both cognitive and affective dimensions of trust. The six most salient antecedents of trust within contemporary trust literature have been identified as satisfaction, communication, competence, shared values, benevolence and integrity. This research suggests that co-creation is also an important antecedent of trust in business-to-business relationships. Co-creation is described here as the active participation, interactions and collaboration of the buyer and seller and other actors in the marketing exchange to develop a deeper understanding of the customer problem solving context.The relative strength of the cognitive and affective aspects of trust antecedents, the moderating influence of business experience and seniority on the relationship between significant antecedents and trust is also explored. The analysis uses statistical tools and then probes deeper using fuzzy-set qualitative comparative analysis (fsQCA).     

Conflict handling, trust and commitment in outsourcing relationship: A Chinese and Indian study

This paper presents a theoretical and empirical model that identifies conflict handling typologies which affect trust and commitment in B2B outsourcing relationship. Three typologies of conflict handling namely integrating, accommodating and compromising were examined for their effects on trust and commitment of Chinese and Indian human resource (HR) outsourcing service providers. The paper also considered the moderating effect of culture in the relationship. Data was collected from Chinese and Indian firms providing HR outsourcing services and analyzed using factor and hierarchical multiple regression analyses. We found both similarities and dissimilarities in the outcomes of the study. Specifically, conflict handling styles are significantly associated with trust and commitment. Trust mediates in the association of conflict handling styles with commitment. The impact of compromising conflict handling on trust and commitment is moderated by culture — significantly higher for the Chinese service providers compared to the Indians. Culture has also a direct impact on commitment but not on trust. Theoretical, cultural and managerial implications of the findings are presented.     

Different roles of control mechanisms in buyer-supplier conflict: An empirical study from China

Using transaction cost economics and contemporary insights from the literature on relationship contracts as a base, this paper focuses on how control mechanisms (contracts and trust) affect relationship conflicts in buyer-supplier relationships, and investigates the moderating effects of environmental uncertainty. Based on a sample of 162 Chinese buyers, this paper shows that contracts have a U-shaped effect on destructive conflict and an inverted U-shaped effect on constructive conflict, while trust has a negative effect on destructive conflict and a positive effect on constructive conflict. In addition, environmental uncertainty strengthens the U-shaped effect of contracts on destructive conflict, but weakens the inverted U-shaped effect of contracts on destructive conflict and strengthens the effect of trust on both types of relationship conflict. Our findings reveal the “double-edged sword” nature of contracts, especially the “dark side”, and highlight the importance of trust in buyer-supplier relationships in contexts of environmental uncertainty. These findings also have important implications for buyer-supplier relationship management research and managerial practices, particularly in regard to governance structure and conflict management in dynamic contexts.     

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.     

Rising up to the challenge of our rivals: Unpacking the drivers and outcomes of coopetition activities

Although a body of work surrounds the notion of coopetition (simultaneous cooperation and competition), the complexities of these inter-firm networks remain relatively under-researched. Consequently, this current study infuses resource-based theory and the relational view (alongside drawing upon the outside-in marketing perspective) to evaluate the drivers and outcomes of coopetition activities. The core method involved collecting survey data from a national-level sample of 323 American wine producers. After assessing this information for all major robustness checks, ordinary least squares regression analysis was used in the model-testing stage. The results showed that while a coopetition-oriented mindset, a competitor orientation, inter-firm trust, and competitive intensity positively impact coopetition activities (in a linear manner), there are certain moderating effects that influence these paths. Additionally, coopetition activities yielded a quadratic association with company performance. Business experience negatively affected this link, whereas, there was a positive interaction effect from industry experience. These findings, offer new evidence regarding the risks and potential rewards of coopetition, including mechanisms that decision-makers can utilize to manage these inter-firm relationships.     

Value co-creation and appropriation of platform-based alliances in cooperative advertising

Digital platforms help develop the open value co-creation strategic alliances, reshape traditional B2B relationships, and promote inclusive social innovation. This research explores the nature of coopetition between the digital platform and its participants. The focus is on how the platform-based alliance balances the contradiction between value creation and appropriation. The support evidence derives from a Stackelberg game in the context of cooperative advertising. Either the platform or the participant supporting advertising in the alliance prompts a Pareto improvement for all players. But the increased profit would be mainly occupied by the dominant platform. The incentive mechanism of profit sharing can promote the alliance to co-create value in a sustainable manner. The game illustrates the significance of cooperative relationships to co-create a larger total value and the existence of an unequal win-win relationship in the strategic alliance. The contradictory logic of cooperation and competition can be accommodated in the platform-based alliance. The dynamic coopetition is involved in a partially convergent interest structure and impacted by power asymmetry. The results highlight the balance between the tensions and harmonies through value creation and appropriation.     

Product and relationship quality influence on customer commitment and loyalty in B2B manufacturing relationships

The article examines how product and relationship quality influence customer commitment along with their combined effect on customer loyalty. The results show that product quality influences positive and negative calculative commitment. With regard to relationship quality, its “social” dimensions such as cooperation and trust have a much greater influence on commitment than its “technical” dimensions such as knowledge transfers and adaptation. On the “social” side, cooperation and trust positively influence affective and normative commitment, with trust also positively affecting positive calculative commitment, while on the “technical” side the only significant link is between adaptation and normative commitment. As for the consequences of commitment, affective commitment positively influences attitudinal and behavioral loyalty, while negative calculative commitment positively influences behavioral loyalty. In addition to indirect effects, product quality also directly positively influences attitudinal and behavioral loyalty. The results imply that customer loyalty depends more on “emotional” (affective commitment) than on “rational” (negative calculative commitment and product quality) motivation to continue the relationship.     

Managing supplier-retailer relationships: From institutional and task environment perspectives

This study develops an integrated model of managing channel relationships that involves task and institutional environment perspectives. Using survey data from automobile dealers in China, the authors provide empirical evidence to demonstrate the utility of the legitimacy-based institutional environment perspective in clarifying channel relationship issues, which have been considered mostly only from an economic efficiency-based task environment approach. As the institutional environment perspective's factors, imposition asymmetry and bypassing have indirect impacts on trust in supplier and the level of conflict in a channel relationship. As the task environment standpoint's factors, explicit contracts and supplier's transaction-specific investments (TSIs) are posited to have direct effects on trust in supplier and the level of conflict, however, the hypothesized relationship between supplier's TSIs and the level of conflict is not supported. The results also indicate both building a retailer's trust in its supplier and lowering the level of conflict lead to improved relationship performance.     

Exporter-importer relationship quality: The inhibiting role of uncertainty, distance, and conflict

The article examines the impact of uncertainty, distance, and conflict on key elements comprising the quality of the relationship between U.S. industrial exporters and their overseas customers. Information received from 151 manufacturers revealed that these three parameters play a significant negative role in building sound relationship quality, in terms of adaptation, commitment, communication, cooperation, satisfaction, trust, and understanding — which, in turn, may inhibit the firm's progression along the internationalization path. Specifically, an inverse association was found between uncertainty, distance, and conflict, on one hand, and commitment, cooperation, and satisfaction, on the other. In addition, in relationships characterized by high uncertainty, adaptation, communication, trust, and understanding were low. In high distance relationships, communication was insufficient, and in high conflict situations, trust and understanding were low. Several managerial implications are extracted from the study, as well as directions for future 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 architecture of coopetition: Strategic intent,ambidextrous managers,and knowledge sharing

The study investigates the significance of strategic intent, manager's ambidexterity, and knowledge sharing routines for firms in their quest to pursue coopetition. We utilize the resource-based view and the dynamic capabilities theory to ground our hypotheses. We test the hypotheses using the data collected from 313 firms that engage in coopetition relationships through an online survey. The findings forward knowledge sharing and ambidextrous managers as intervening variables, in that when complemented with knowledge sharing, a firm's strategic intent could better guide the firm's managers to pursue coopetition successfully. Findings further advocate that knowledge sharing complements to enable the relationship between a firm's strategic intent and its ambidextrous managers, as well as the relationship between strategic intent and coopetition. Furthermore, results also indicate that ambidextrous managers, with a skillset of a combination of exploration and exploitation, are positively associated to coopetition. Overall, the findings make important theoretical as well as empirical contributions to the coopetition and strategic alliance literature.     

Creating trust and commitment in B2B services

In an ever-changing environment, business relationships are becoming increasingly complex. This particularly applies to the business-to-business (B2B) service sector due to its intangible nature. The combination of personal and organizational relationships further increases this complexity. However, trust can reduce uncertainty and complexity and help maintain commitment. Based on structural equation modeling and a sample of 1692 participants, this study provides insights into the drivers of trust in organizations and salespersons and their impact on commitment. The results show that both are important, but trust in a salesperson far surpasses the effect of trust in an organization. Furthermore, reputation and service quality influence trust in an organization, while social skills and low selling orientation affect trust in a salesperson. In summary, to the best of our knowledge, our study is the first to provide a comprehensive trust model in the B2B service market, and it might serve as a guide for future research.     

The performance implications of power–trust relationship: The moderating role of commitment in the supplier–retailer relationship

The current research examines how coercive power and non-coercive power affect trust and how these relationships are affected by affective and calculative commitment. It also expands the understanding of the role of an under-researched dimension of performance, i.e., strategic performance, and studies it as a mediating variable in the relationship between trust and financial performance. The proposed model is empirically tested using Partial Least Squares (PLS) in supplier–retailer channel in Taiwan. The findings reveal that affective commitment has a positive moderating effect on the negative relationship between coercive power and trust, while calculative commitment has a negative moderating effect on the positive relationship between non-coercive power and trust. The results also indicate that strategic performance partially mediates the effect of trust on financial performance. The research advances theoretical understanding on the complex power–trust relationship and provides insights into the role of commitment in both enabling and undermining channel relationships. The findings highlight the importance of building affective commitment in channel relationships and the critical role of strategic performance in the trust–financial performance relationship.     

Interfirm coopetition,interfirm knowledge creation,and collaborative innovation performance: The moderating roles of environmental competitiveness and dysfunctional competition

This paper investigates whether and how interfirm coopetition—the combination of cooperation and competition—affects collaborative innovation performance in competitive environments. We address this issue by introducing interfirm knowledge creation as a mediating mechanism based on knowledge creation theory and by examining the moderating effects of environmental competitiveness and dysfunctional competition. The hypotheses are tested using survey data from a sample of 170 Chinese high-tech firms. The results show that interfirm knowledge creation mediates the impact of interfirm coopetition on collaborative innovation performance. Furthermore, the findings indicate that the positive relationship between interfirm coopetition and interfirm knowledge creation is stronger under higher levels of environmental competitiveness but weaker under higher levels of dysfunctional competition. The positive relationship between interfirm knowledge creation and collaborative innovation performance is more evident under higher levels of environmental competitiveness. These findings enrich the interfirm coopetition literature, contribute to knowledge creation theory by extending it to the interfirm context, and provide a better understanding and useful advice for enterprise managers and government officials.