Coopetition as a Small Business Strategy: Implications for Performance

  • Michael H. Morris Syracuse University
  • Akin Kocak Ankara University
  • Alper Ozer Ankara University

Abstract

This paper explores coopetition, a strategy that combines cooperation and competition in addressing relationships between firms. We examine the underlying nature of coopetition, and evaluate the extent to which it represents a relevant strategy for small firms. Inherent problems are identified when attempting to collaborate with competitors. We propose an approach to measuring the coopetitive tendencies of small firms. The measurement approach centers on three underlying dimensions: mutual benefit, trust, and commitment. Applying this approach, we assess the relationship between coopetition and firm performance. Based on a survey of 647 small firms in Turkey, a strong, positive relationship is identified. Theoretical and managerial implications are drawn from the findings.

Downloads

Download data is not yet available.

References

Adler, L. (1967). "Resource Pooling for Mutual Benefit." Management Review, 56(2): 59-64.

Afuah, A. (2000). "How Much Do Your Coopetitiors' Capabilities Matter in the Face of Technological Change?" Strategic Management Journal, 21(3): 387-404.

Aldrich, H., and Auster, E. (1986). "Even Dwarfs Started Small: Liabilities of Age and Size and Their Strategic Implications." Research in Organizational Behavior, 8(2): 165 - 198.

Amaldoss, W., Meyer, R., Raju, J., and Rapoport, A.(2000). "Collaborating to Compete." Marketing Science, Spring, 19(2): 105-126.

BarNir, A. and Smith, K. A. (2002). "Interfirm Alliances in the Small Business: The Role of Social Networks." Journal of Small Business Management, 40(3): 219- 232.

Bengtsson, M. and Kock, S. (2000). "Coopetition in Business Networks-to Cooperate and Compete Simultaneously." Industrial Marteting Management, 29(5): 411-426.

Bengtsson, M., Hinttu, S., and Kock, S. (2003). "Relationships of Cooperation and Competition between Competitors." 19 . Annual IMP Conference, Lugano, Switzerland.

Bird, B. (1989). Entrepreneurial Behavior. Glenview, IL: Scott, Foresman.

Borch, O. J. and Arthur, M.B. (1995). "Strategic Networks Among Small Firms: Implications for Strategy Research Methodology." Journal of Management Studies, 32(4): 419-441.

Bucklin, L. P. and Sengupta, S. (1993). "Organizing Successful Co-Marketing Alliances." Journal of Marketing, 57(2): 32-46.

Churchill, G. A. (1979). "A Paradigm for Developing Better Measures of Marketing Constructs." Journal of Marketing Research, 76(1), 64-73.

Combs, J.G. and Ketchen, DJ. (1999). "Explaining Interfirm Cooperation and Performance: Toward a Reconciliation of Predictions from the Resource-Based View and Organizational Economics." Strategic Management Journal, 20(9): 867-888.

Dagnino, G.B. and Padula, G. (2002). "Coopetition Strategy: A New Kind of Interfirm Dynamic for Value Creation." European Academy of Management, 2 . Annual Conference on Innovative Research in Management, Stockholm, Sweden.

Dennis, C. (2000). "Networking for Marketing Advantage." Management Decision, 38(4): 287- 292.

Dowling, M. J. and Roering, W. D. (1996). "Multifaceted Relationships under Coopetition: Description and Theory." Journal of Management Inquiry, June, 5(2): 155-167.

Dussauge, P., Garrette, B. and Mitchell, W. (2000). "Learning From Competing Partners: Outcomes and Durations of Scale and Link Alliances in Europe, North America and Asia." Strategic Management Journal, 21(2): 99-126.

Dyer, J. and Singh, H. (1998). "The Relational View: Cooperative Strategy and Sources of Interorganizational Advantage." Academy of Management Review, 23(4): 660-679.

Farrelly, F. and Quester, P. (2003). "The Effects of Market Orientation on Trust and Commitment: The Case of the Sponsorship Business-to-Business Relationship." European Journal of Marketing, 37(3/4): 530-553.

Garcia, C.Q. and Velasco, C. (2002). "Coopetition and Performance: Evidence from European Biotechnology Industry." European Academy of Management, 2nd . Annual Conference on Innovative Research in Management, Stockholm, Sweden.

Garaffo, F. (2002). "Types of Coopetition to Manage Emerging Technologies." EURAM: Second Annual Conference, Innovative Research in Management, Stockholm.

Gee, E. P. (2000). "Coopetition: The New Market Milieu." Journal of Healthcare Management, 45(6): 359-363.

Gnyawali, D. and Madhavan, R. (2001). "Cooperative Networks and Competitive Dynamics: A Structural Embeddedness Perspective." Academy of Management Review, 26(3): 431-449.

Gomes-Casseres, B. (1997). "Alliance Strategies of Small Firms." Small Business Economics, 9(1): 33-44.

Gutnmesson, E.(1997). "Collaborate or Compete." Marketing Management, 6(3): 17-20.

Gursoy, D. and Gavcar, E. (2003). "International Leisure Tourists' Involvement Profile." Annals of Tourism Research, 30(4): 906-926.

Hakansson, H. and Ford, D. (2002). "How Should Companies Interact in Business Networks." Journal of Business Research, 55(2): 133-139.

Hooley, G. and Fahy, J. (2002). "A Scale for Measuring Marketing Capabilities." Marketing in a Changing World, EMAC Annual Conference, University of Minho, Braga, Portugal.

Jap, S.D.(2001). "Pie Sharing in Complex Collaboration Contexts." Journal of Marketing Research, 38(1): 86-99.

Jarvis, R., Curran, J., Kitching, J. and Lightfoot, G. (2000). "The Use of Quantitative and Qualitative Criteria in the Measurement of Performance in Small Firms." Journal of Small Business and Enterprise Development, 7(2): 123-134.

Jorde, T. M. and Teece, D. J. (1989). "Competition and Cooperation: Striking the Right Balance." California Management Review, 31(3): 25-37.

Jöreskog, K.G. and Sörbom, D. (1998). Lisrel 8.20 and Prelis 2.20 for Windows. Chicago, Scientific Software.

Kanter, R. (1994). "Collaborative Advantage." Harvard Business Review, 72 (4): 96-108.

Kelloway, E. K. (1998). Using Lisrel for Structural Equation Modelling: A Researcher's Guide. SAGE Publications, Thousand Oaks, CA.

Laine, A. (2002). "Hand in Hand with the Enemy." European Academy of Management, 2nd Annual Conference on Innovative Research in Management, Stockholm, Sweden.

Luo, Y. (2005). "Toward Coopetition within a Multinational Enterprise: A Perspective from Foreign Subsidiaries." Journal of World Business, 40(1): 71-90.

Meijaard, J., Brand, M. J. and Mosselman, M. (2005). "Organizational Structure and Performance in Dutch Small Firms." Small Business Economics, 25(1): 83-96.

Morgan, R. M. and Hunt, S. D. (1994). "The Commitment-Trust Theory of Relationship Marketing." Journal of Marketing, 58(3): 20-38.

Parker, H. (2000). "Interfirm Collaboration and the New Product Development Process." Industrial Management & Data Systems, 100(6): 255-260.

Ploetner, O. and Ehret, M. (2006). "From Relationships to Partnerships-New Forms of Cooperation between Buyer and Seller." Industrial Marketing Management, 35(1): 4-9.

Premaratne, S.P. (2001). "Networks, Resources, and Small Business Growth: The Experience in Sri Lanka." Journal of Small Business Management, 39(4): 363- 371.

Ramaseshan, B. and Loo, O. (1998). "Factors Affecting a Partner's Perceived Effectiveness of Strategic Business Alliance." International Business Review, 7(4): 443-458.

Robson, P. and Bennet, R. J. (2000). "SME Growth: The Relationship with Business Advice and External Collaboration." Small Business Economics, 15(3): 193-208.

Sargeant, A. and Lee, S. (2004). "Trust and Relationship Commitment in the United Kingdom Voluntary Sector." Psychology & Marketing, 27(8): 613-635.

Sherer, S. A. (2003). "Critical Success Factors for Manufacturing Networks as Perceived by Network Coordinators." Journal of Small Business Management, 41(4): 325-345.

Shook, C. L., Ketchen, D.J., Huit, G., and Kacmar, K.M. (2004). "An Assessment of the Use of Structural Equation Modeling in Strategic Management Research." Strategic Management Journal, 25(4): 397-404.

Spence, L.J., Coles, A. and Harris, L. (2001). "The Forgotten Stakeholder? Ethics and Social Responsibility in Relation to Competitors." Business and Society Review, 106(4): 331-352.

Svensson, G. (2002). "The Measurement and Evaluation of Mutual Dependence in Spesific Dyadic Business Relationships." Journal of Business and Industrial Marketing, 77(1): 56-74.

Tsai, W. (2002). "Social Structure of Coopetition Within a Multiunit Organization: Coordination, Competition, and Knowledge Sharing." Organization Science, 13(2): 179-190.

Volery, T. (1995). "Critical Success Factors In Interfirm Cooperation: The Case of Swiss SMEs." Proceedings of the ICSB 40th World Conference, Sydney, Australia.

Vandenbosch, M. B. (1996). "Confirmatory Compositional Approaches to the Development of Product Spaces" European Journal of Marketing, 30(3): 23-46.

Verhees, F. and Meulenberg, M. (2004). "Market Orientation, Innovativeness and Performance in Small Firms." Journal of Small Business Management, 42(2): 134-154.

Widaman, K. F. (1993). "Common Factor Analysis Versus Principal Component Analysis: Differential Bias in Model Parameters?" Multivariate Behavioral Research, 28(3): 263-311.

Wijewardena, H. and Tibbits, G. E. (1999). "Factors Contributing to the Growth of Small Manufacturing Firms." Journal of Small Business Management, 37(2): 88-95.

Wilkinson, I. and Young, L., (2002). "On Cooperating Firms, Relations and Networks." Journal of Business Research, 55(2): 123-132.

Yusuf, A. and Saffu, K. (2005). "Planning and Performance of Small and Medium Enterprise Owners in a Country in Transition." Journal of Small Business Management, 43(4): 480-497.

Zabkar, V. and Brencic, M. M. (2004). "Values, Trust and Commitment in Business to Business Relationships." International Marketing Review, 21(2): 202-215.

Zineldin, M. (1998). "Towards an Ecological Collaborative Relationship Management." European Journal of Marketing, 52(11/12): 1138-1164.
Published
2007-01-20
How to Cite
MORRIS, Michael H.; KOCAK, Akin; OZER, Alper. Coopetition as a Small Business Strategy: Implications for Performance. Journal of Small Business Strategy, [S.l.], v. 18, n. 1, p. 35-56, jan. 2007. ISSN 2380-1751. Available at: <https://libjournals.mtsu.edu/index.php/jsbs/article/view/77>. Date accessed: 22 apr. 2019.
Section
Articles