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Coopetition and Its Determinants in a Business Group: Theoretical Considerations

Published online by Cambridge University Press:  16 November 2021

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Summary

Abstract

Bringing together the apparently contradictory forces of competition and cooperation into one relationship and interaction is not a new approach, but the body of research in the area of coopetition is fragmentary. A new perspective can open up as a result of studies on coopetition in business groups since this area has not been investigated yet. Empirical and cognitive premises have made us engage in an attempt to theoretically consider the determinants of intensity and nature of coopetition in business groups to find answers to questions concerning the orientation at value appropriation in a dynamic multiple-unit context. The paper enumerates the most important factors that lead to the emergence of competition side by side with cooperation between companies. The analysis covers factors related to business group characteristics, as well as the specificity of business group environment.

keywords: coopetition, determinants of coopetition, business group

Introduction

Subject matter literature defines coopetition as operations within the realm of strategic management, relationship marketing, business networks, building industrial quarters or managing the value chain. In the simplest way possible, coopetition is defined as the relationship between companies in which cooperation and competition take place simultaneously. Relational dynamics amongst different actors may take the form of competition, coexistence, cooperation, and coopetition. Coopetition can be distinguished by simultaneous value creation and appropriation. It may happen at different levels, starting from employees and workers of the same enterprise (individual coopetition) through divisions, departments or subsidiaries (intra-organisational coopetition) up to the level of independent enterprises (inter-organisational coopetition). Most publications in the subject matter literature are devoted to inter-organisational coopetition but there are almost no writings available that would examine coopetition within business groups. Coopetition in business groups is treated as intra-organisational coopetition. Research studies in this area are still relatively scarce and in most cases they focus on multinational enterprises (MNE). Yet, by looking at business groups operations we can surely conclude that together with cooperation we can observe the emergence of rivalry amongst companies within particular groups.

The paper is intended to present theoretical considerations focused on coopetition and its determinants in business groups based on the examination of subject matter literature. It is divided into three parts which introduce us to the substance of coopetition, examine the phenomenon in the context of business groups, and identify the major determinants of cooperation and competition taking place simultaneously in business groups.

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The Future of Management
Volume One: Entrepreneurship, Change and Flexibility
, pp. 37 - 49
Publisher: Jagiellonian University Press
Print publication year: 2022

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