The dark-side of coopetition: Influences on the paradoxical forces of cooperativeness and competitiveness across product-market strategies.

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Authors: James M. Crick and Dave Crick
Date: Jan. 2021
Publisher: Elsevier B.V.
Document Type: Report; Brief article
Length: 216 words

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Abstract :

Keywords Coopetition; Financial performance; Competitive intensity; Competitive aggressiveness; Resource-based theory; Relational view Abstract Although it has been widely established that coopetition (simultaneous cooperation and competition) has a positive association with firms' performance, researchers have largely overlooked the environmental and firm-level forces potentially affecting that relationship. Under resource-based theory and the relational view, this current study evaluates whether competitive intensity and competitive aggressiveness negatively moderate the coopetition-financial performance relationship. Through a mixed methods approach featuring New Zealand wine producers, a positive relationship existed between coopetition and financial performance supporting earlier research. However, competitive aggressiveness provided a negative moderation effect and competitive intensity had a positive moderation effect. Unique insights emerge regarding underlying issues (potential dark-sides) behind the coopetition-financial performance relationship. Competitive intensity provides an opportunity for owner-managers to select trustworthy rivals targeting complementary product-markets. However, if decision-makers cannot effectively manage competitive aggressiveness across product-market strategies, they are likely to experience certain harmful outcomes, like tensions and diluted competitive advantages. Author Affiliation: (a) Loughborough University, School of Business and Economics, Epinal Way, Loughborough, Leicestershire LE11 3TU, UK (b) Dave Crick, University of Ottawa, Telfer School of Management, Ontario K1N 6N5, Canada * Corresponding author. Article History: Received 10 May 2020; Revised 24 August 2020; Accepted 26 August 2020 Byline: James M. Crick [j.m.crick@lboro.ac.uk] (a), Dave Crick [dcrick@uottawa.ca] (b,*)

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Gale Document Number: GALE|A648491663