Coopetition in New Product Development Alliances: Advantages and Tensions for Incremental and Radical Innovation

Coopetition (collaboration between competitors) can facilitate product innovation, but there is still debate about how it is suited to radical or incremental innovation. This paper argues that the early and later phases of coopetitive new product development (NPD) pose different benefits and risks for the innovation types. Building on the tensions approach to value creation and appropriation, we develop a series of hypotheses on the role of coopetition in NPD alliances and focal firm's innovation output. The hypotheses are tested on a quantitative data set of 1049 NPD alliances in the German medical and machinery sectors. The results show that, while coopetition is advantageous for incremental innovation in both pre‐launch and launch phases, radical innovation benefits from coopetition in the launch phase only.     

Discovering and Managing Interdependence with Customer‐Entrepreneurs

Research on inter‐organizational relationships has largely focused on the interdependence between formal organizations. In recent years, firms have encountered a new logic in which interdependent parties are not formal organizations but platform‐based ‘customer‐entrepreneurs’ that create value through illegal means. Drawing on a 5‐year‐long qualitative study, we examine how firms recognize and instantiate this new logic and, consequently, respond to their interdependencies with customer‐entrepreneurs. Viewed through the lens of institutional logic, we find that, with the benefit of hindsight, firms recognize the existence of the logic of customer entrepreneurship, which triggers organizational sensemaking that is made up of three elements: interpretation of legitimacy compatibility; interpretation of efficiency compatibility; and integration of stakeholder perspectives. This sensemaking results in either a determined account concluding on the compatibility calculus in a top‐down manner, or an open‐ended account avoiding the construction of a resolute, synthesized view. A determined account leads to a defiance strategy, by which firms attempt to remove the source of interdependencies with customer‐entrepreneurs, whereas an open‐ended account guides firms to espouse a decoupling strategy, whereby firms covertly resort to efficiency maximization enabled by the interdependence. Our results offer implications for the research on inter‐organizational relationships and institutional logic.     

The multiple faces of tension: dualities in decision-making

Review of Managerial Science - In making decisions about strategic and operational actions, managers commonly need to consider dualities such as long-term versus short-term, innovation versus...     

The family structures are changing—but what about the idea of the family?

In contemporary societies, stepfamilies usually emerge following divorce and remarriage. This family form has become more prevalent in Finland during the 1980s. The present article focuses on the public discourse surrounding the stepfamily as this is reflected in family and women's magazines. This discourse reveals the still prevailing strong cultural norms regarding family life: living in a family is defined as the normal way of living, with bonds of belonging together and biological ties defined as primary. The stepfamily is expected to fulfil these expectations. The ideology governing the stepfamily is therefore very similar to that of the traditional nuclear family unit.     

In search for the ideal coopetition partner: an experimental study

Coopetition (collaboration between competitors) has the potential to provide major benefits or losses to participating firms. Entering a partnership with a competitor is a strategic decision with potential long-term consequences rendering the choice of partner of key importance. Existing research has investigated partner’s strategic attributes, but not how the inter-organizational factors between coopetiting firms affect partner selection and on which layers those effects occur. We use a vignette study for reducing this gap, representing the first experimental study on the field of coopetition research. The results from our study from 874 evaluations of potential coopetition partnerships by key informants from Austria, Germany, Liechtenstein and Switzerland offer insights into how the possible partner’s role, resource alignment and the planned activity affect partner selection. The findings suggest that the partner’s role in the markets—i.e. whether it is a direct or an indirect competitor—is critical in partner selection. The planned activity and resource configuration is also found to influence the evaluation of possible coopetition partners. Overall, the results of this first experimental study in coopetition research provide important implications to both theory and practice.     

Coopetition Strategy – When is it Successful? Empirical Evidence on Innovation and Market Performance

Coopetition (collaboration between competing firms) has been viewed as a potentially beneficial but also a risky relationship for a firm. Earlier literature provides inconclusive evidence in terms of the effects of a firm's coopetition strategy on innovation and market performance, suggesting both positive and negative implications. Some of this variation could be attributed to the fact that coopetition is successful only in certain types of business environment. In order to take the research further, this study examines the effect of a coopetition strategy on the firm's innovation and market performance, focusing on the moderating effects of market uncertainty, network externalities and competitive intensity. The results from a cross‐industry survey of 209 Finnish firms provide novel evidence on the conditions under which coopetition is successful and when it is not.