Culture and cross-functional coopetition: The interplay of organizational and national culture

Scholars now recognize coopetition—the joint occurrence of cooperation and competition—between functional units as an important factor for a firm's learning and performance. We know little, however, about the drivers of cross-functional coopetition and in particular the roles of organizational culture and national culture. This study introduces cross-functional coopetition to the international management literature by illuminating the cultural antecedents of cross-functional coopetition. Specifically, we develop a cross-cultural model to analyze the influence of organizational and national culture on cross-functional coopetition. Drawing on a dataset of 646 companies from seven countries, we theoretically advance and empirically validate the influence of organizational culture and the moderating role of individualism and uncertainty avoidance on cross-functional coopetition. Organizational cultural dimensions directly enhance cross-functional coopetition. Furthermore, strong social values of individualism and uncertainty avoidance weaken the relationship between organizational culture and cross-functional coopetition. This study provides a novel perspective on how organizational culture can represent a strategic resource by illuminating the cultural mechanisms that influence coopetition within the firm.     

Organizational innovativeness and coopetition: a study of video game developers

Collaboration with rivals is viewed as a way to achieve superior performance of firms in terms of innovation output. Yet empirical results show that coopetition may either foster, hamper or be neutral to innovation. The motivation of our study resides in firms’ heterogeneity in terms of their innovative capacity, that is innovativeness, in order to better understand the complex relationship between coopetition and innovation. We explore the interdependency between organizational innovativeness and coopetition. Our study has been conducted in the Polish video game industry. The data has been collected through a survey administered to all 506 identified Polish video game developers, with an effective sample of 84 coopetitors. We run correlation and regression analyses in a multidimensional approach to organizational innovativeness and coopetition. Our findings show that coopetition is a popular strategy for video game developers, and is adopted by 68% of firms. Organizational innovativeness and its particular dimensions are positively and significantly related to both direct and indirect coopetition. Based on factor analysis we find its three components to be reliable: openness and encouragement to innovate; strategic innovative focus; and extrinsic monetary motivation. While extrinsic monetary motivation does not play a role in coopetition of video game developers, openness and encouragement to innovate stimulates especially indirect coopetition, while strategic innovative focus affects especially direct coopetition.     

Costs of partner search and selection in strategic alliances

This study examines the costs associated with alliance partner search and selection as well as their antecedents. Based on transaction cost economics and the network perspective on inter-organizational relationships, the findings drawing on survey-based data from a sample of 83 firms in the German telecommunications industry reveal that partner search and selection costs are closely connected but differentially affected by task- and company-related factors. When firms must make alliance-specific investments, search and selection costs increase. A firm’s number of current alliances decreases search and selection costs, whereas neither alliance scope nor firm performance significantly affect them. Additional analyses show that alliance-specific investments especially increase search costs but do not affect selection costs, whereas a firm’s performance decreases search costs but does not reduce selection costs.     

动态环境下联盟竞合、治理机制与创新绩效的关系研究

本文从竞合视角审视联盟组合,结合动态关系观探讨有效的联盟治理机制,揭示了联盟组合中竞合关系(横向竞合、纵向竞合)、治理机制(契约治理、关系治理)和创新绩效之间的关系,并考察了动态环境特征(技术波动、竞争强度)的二次调节作用。在不同的竞合关系中,由于合作和竞争的强度不同,契约治理与关系治理机制的作用也存在差异,同时,治理机制与创新绩效之间的关系也受到两种不同环境动态性特征的影响。研究结果显示,在纵向竞合中,运用关系治理比运用契约治理能更好地提升创新绩效,技术波动正向调节契约治理、关系治理与创新绩效间的关系。在横向竞合中,运用契约治理比运用关系治理有效,竞争强度加强了契约治理对创新绩效的影响,即关系治理在波动的环境中更有效,契约治理在竞争的环境中更有效。本文为企业开展研发联盟组合管理提供了新的视角和管理对策。     

A coopetition perspective of MNC–host government relations

Building on convergent insights of resource dependence and business political behavior, this article attempts to develop a conceptual and typological framework of coopetition in which cooperation and competition simultaneously coexist in the relationship between multinational corporations (MNCs) and host governments. The coopetition view does not see the MNC–government relationship (MGR) as dichotomous or as a continuum between cooperation and competition but as a simultaneous, inclusive partnership containing cooperation and competition as two separate yet interrelated continua. This article addresses why coopetition arises, what coopetition constitutes, and how coopetition configures with environmental and organizational dynamics. It offers a typology of coopetition that identifies MNCs involving varying cooperation and competition (estranger, contender, partner, and integrator) and elucidates each identity's political responses.     

International coopetition for innovation: Are the benefits worth the challenges?

International coopetition has rarely been studied in relation to innovation. Further exploration of effects of international coopetition, i.e. the pursuit of simultaneous cooperation and competition, on a firm’s innovation performance is especially important as such a relationship is challenging with a high propensity to fail. This observation formed the point of departure for this study, which aims to increase the understanding of the effects of international coopetition on firm innovativeness and how these effects are conditioned on the magnitude of the organizational adjustments a firm introduces. We use an unbalanced panel of 9839 firms that participated in four waves of the Swedish Community Innovation Survey between 2008 and 2014 as our empirical base. We illustrate that firms that cooperate with competitors internationally are more likely to exhibit higher propensity to introduce radical innovations, yet this effect is conditioned upon the magnitude of organizational adjustments. Overall, our study contributes to the understanding of the implications of international coopetition and what a firm needs to benefit from it.     

Managing Technology Selection and Development Risk in Competitive Environments

Managing development decisions for new products based on dynamically evolving technologies is a complex task, especially in highly competitive industries. Product managers often have to choose between introducing an incrementally better, safe new product early and a superior, yet highly risky, product later. Recommendations for managing such performance vs. time‐to‐market trade‐offs often ignore competitive reactions to development decisions. In this paper, we study how a firm could incorporate the presence of a strategic competitor in making technology selection and investment decisions regarding new products. We consider a model in which an innovating firm and its rival can introduce a new product immediately or pursue a more advanced product for later launch. Further, the firm can reduce the uncertainty surrounding product development by dedicating more resources; the effectiveness of this investment depends on the firm's innovative capacity. Our model generates two sets of insights. First, in highly competitive industries, firms can adopt different technologies and effectively use introduction timing to mitigate the effects of price competition. More importantly, the firm could strategically invest in the advanced product to influence its rival's technology choice. We characterize equilibrium development and investment decisions of the firms, and derive innovative capacity hurdles that govern a firm's choice between the risky and safe alternatives. The effects of development flexibility—where firms might have the option to revert to the safe product if the advanced product fails—are also considered.     

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.     

Strategy frames in coopetition: An examination of coopetition entry factors in high-tech firms

Collaboration with competitors offers unique advantages such as increasing market, innovation, and financial performance. However, the degree of coopetition adoption varies between firms, as does the ability to achieve intended outcomes. We address this variety through the lens of strategic frames, essential for understanding business environment interpretations that managers develop, interactions with other actors that they engage in, and the subsequent performance firms may achieve. We examine associations between external and internal coopetition factors as perceived by coopeting managers.To single out the coopetition factors seen by respondents as the most relevant and to evaluate their mutual associations, we apply traditional regression analyses on survey data collected from 352 high-technology firms in Poland. To fully embrace the causal complexity, we advance our regression-based insights by using a complementary necessary condition analysis (NCA) and bottleneck analysis.Our results suggest that coopeting managers place higher importance on customer-driven rather than on resource-driven coopetition factors when considered as sufficient leveraging factors. Still, the complementary NCA reveals internal resources as critical factors for the perception of external factors of coopetition. Finally, we identify external technological development as the most limiting bottleneck for the perception of most internal coopetition factors, highlighting coopetition as a technology-driven strategy.     

Strategic Alliance Temporalities and Partner Opportunism*

The troubling potential for opportunistic behaviour in strategic alliances is acknowledged in both research and practice, and yet the antecedents of such opportunism remain largely unexplored in the literature. In this article we suggest that the inherent temporalities of alliances play significant roles in partner opportunism. We propose a model of potential partner opportunism that assigns antecedent and contingent roles to the temporal horizons of alliances and the temporal orientations of the member firms. We introduce the notion of alliance horizons and suggest that they are constituted by the temporal orientations of the member firms and a number of common alliance formation factors. We also discuss how these alliance horizons in conjunction with the temporal orientations of member firms result in different levels of potential opportunism. Lastly, we develop a number of propositions to facilitate empirical research on the temporal contingencies of partner opportunism and indicate directions for further studies.     

Gauging the unique developmental strategies towards human resource at Saudi Aramco

Saudi Aramco’s unrivalled upstream oil operations over the years would not have been possible without an unparalleled commitment towards the development of people. The human resource department of Saudi Aramco was successful in creating a healthy and productive environment by shifting the focus from ‘administration’ to being a ‘strategic partner’. The purpose of this paper is to identify and illuminate the human resource developmental strategies that are aligned with core business practices leading to exceptional performance at Saudi Aramco. As an academician, the author believes that this paper will provide an insight into gauging human resource development strategies for any aspiring firm and can be referred for further research.     

The impact of different fit dimensions on spillover effects in brand alliances

Brand alliances represent a popular business strategy in many industries, because firms hope to evoke positive consumer evaluations of both the alliance’s product and the partner brands. However, extant research offers mixed findings regarding the effects of a brand alliance on its partner brands (i.e., spillover effects). In response, this study separates spillover effects into the effects of the alliance product on the partner brands (brand alliance effects) and the effects between partner brands (brand contrast effects), while also noting the potential moderating impact of perceived attitude- and product-based fit between partner brands on resulting spillover effects. Two experimental studies consistently reveal the existence of brand contrast effects; furthermore, the partner brand’s attitude-based fit reduces undesired brand contrast effects and positively moderates spillover effects in brand alliances, whereas product-based fit does not. Therefore, a third study identifies relevant drivers of partner brand’s attitude-based fit for different brand alliances (i.e., co-branding, ingredient branding, and joint advertising). The findings have notable implications for the design and management of brand alliances.     

The Changing Face of Distribution Channels: Partial Forward Integration and Strategic Investments

Recent years have seen a drastic transformation in the organization of wholesale and retail markets. Where once clear distinctions between wholesale suppliers and retail competitors existed, now an era of blurring boundaries has emerged. This transformation has been marked by the introduction of online channels for suppliers to provide products directly to consumers while, at the same time, traditional retailers too persist. Thus, retailers are both wholesale customers and retail competitors of many manufacturers. The consequences of the rapid emergence of instances of such partial forward integration by suppliers are not yet fully known. To this end, we study how partial forward integration can affect competing firms' strategic investments. We find that integration shifts the environment from being one in which firms invest to undercut retail rivals to one in which firms invest more in boosting demand, even that of their competitors. A case in point is the tendency for a manufacturer to invest broadly in brand promotion (benefiting both itself and its retail competitor), rather than heavy promotion of its own sales channel. The shift in the nature of strategic investments arising from partial forward integration implies that such integration can benefit firms and consumers alike, even the firm which finds itself reliant on a competitor for supplies.     

How rival partners compete based on cooperation?

Prior studies of coopetition have explained the what, how and why of firms cooperating with competitors. Among these, examining the how question as to the stream of coopetition dynamics is the most challenging theme. Previous research has focused much more on the cooperation side. Less attention has been paid to the competition side to reveal what happens to competition after the competitors have collaborated. This study sheds light on the issue of cooperation-based competition by answering the question: while cooperating with competitors, how do rival partners compete based on cooperation? Linking the competitive dynamics perspective to coopetition, we conducted a single-case study to analyse the competition between two leading competitors in the Taiwanese bicycle industry. We collected the reported issues pertaining to the competition in the European market and supported by in-depth interviews. The analysis leads us to develop three propositions and a conceptual framework for illustrating the cooperation-based competition and addressing how cooperation may influence competition in a coopetition relationship. This study provides new insights into a theoretical issue of cooperation-based competition. The case also provides management implications while taking a coopetition strategy.     

David and Goliath: causes and effects of coopetition between start-ups and corporates

Coopetition (collaboration between competitors) among young firms (i.e. start-ups) and larger, more established firms (i.e. corporates) may be beneficial for both partners as each party typically has something to offer that is missing in the other. Start-ups often develop innovative ideas, are flexible and agile, willing to take risks, and aspire to achieve high growth, but they tend to lack the required resources, capabilities, and knowledge due to their newness and smallness. Corporates have resources, routines, and experience that enable them to work efficiently but lack a certain innovation capability. Research has suggested that coopetition represents an opportunity for start-ups facing restrictions in resources, while corporates benefit from start-ups’ innovative ideas. However, it is yet unknown whether start-ups and corporates engage in coopetition with each other and, if so, how and why they do this. This study seeks to fill this void by exploring the motives of coopeting start-ups and corporates, how they manage their coopetitive relationship, and what implications occur including potential benefits and risks. We present a multiple case study based on qualitative data collected through 70 interviews with Austrian-based start-ups and corporates representing 35 coopetitive partnerships. Discussing the findings based on our data, we propose relationships concerning coopetition and its role to enlarge resource- and technology-bases as well as its role in the development of dynamic capabilities.     

The management of managers: A review and conceptual framework

The management of managers is an important contemporary concern, but the literature on the issue is not well integrated. This paper reviews key sources on the topic across organizational economics, human resource development and strategic human resource management. It presents a novel interdisciplinary framework for analysing how firms manage senior managers and for guiding future research, arguing that firms adopt different styles to attract–defend, develop–renew and motivate–harvest their senior managerial resource, depending on their contexts and choices that are made in the firm over time. The notion that some styles draw on early identification of élites while others treat management identification as more of an emergent problem is central to the typology. Within each of the styles identified, effectiveness in the management of managers hinges on recognizing and handling certain strategic tensions and problems.     

资源互补对机会主义和战略联盟绩效的影响研究

20世纪80年代以来,全球战略联盟的数量激增,逐步成为企业的快速成长方式,但其失败率也非常高。本文以资源依赖理论和交易成本理论为基础,以中国企业为样本,从资源互补和机会主义的角度分析了合作与竞争对联盟绩效的影响。实证研究的结果表明,联盟中的资源互补能够提高联盟的财务绩效与创新,而机会主义则会负向影响财务绩效和创新。同时,适度的资源互补是有效遏制机会主义的手段,过高或过低的资源互补都会使联盟企业处于机会主义的风险之中,即资源互补和机会主义之间的关系呈倒U型的关系。     

Realizing Benefits from Enterprise Resource Planning: Does Strategic Focus Matter?

A key driver of the recent wave of enterprise resource planning (ERP) implementations was the assumption that the integration of business information would provide firms with a competitive advantage, yet concrete business benefits have been uneven across adopting firms. A possible explanation is that although the resource‐based view holds that competitive advantage is derived from inimitable resources, ERP software has become a commodity. Socio‐technical theory suggests that internal organizational resources based on a foundation of ERP technology may be the true drivers of ERP benefits. A firm's strategic configuration is posited to influence the portfolio of organizational competencies available to leverage the benefits of integrated business information, and a number of hypotheses are developed based on the notion that firms with different strategic objectives will realize different operational benefits from the adoption of ERP systems. Survey data from North American manufacturing firms that have implemented ERP systems demonstrate that ERP adopters seeking operational performance improvements are likely to realize these benefits. On the other hand, those seeking external market and supply chain performance improvements must first establish a foundation of internal operational performance improvements before customer satisfaction and supply chain benefits can be realized.     

Corporate governance effectiveness along the entrepreneurial process of a family firm: the role of private equity

This paper was motivated by the increasing interest in the corporate governance debate on how effective structure and processes may influence entrepreneurial transitions. Along the entrepreneurial process, little research to date has investigated the exit in the context of entrepreneurial family firms. Previous literature has considered the exit mainly as a failure for entrepreneurial families, but when uncertainties arise this choice may enable ownership transitions, thus facilitating survival and long term strategies. Among the exit options, a private equity buyout may balance the family’s wealth protection and the firm’s future growth. However, which family specific characteristics and strategic needs may affect the exit option still remains a neglected topic. Drawing on corporate governance literature and recent research addressing entrepreneurship in family firms, this paper investigates, by a single case study, the bridging role of private equity buyout for going through entrepreneurial transitions. Findings suggest that a private equity buyout is a governance mechanism that may sustain an entrepreneurial transition by realigning family interests and goals. It may also allow the family commitment for improving organizational capabilities required by an entrepreneurial transition.