Coopetition

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Coopetition or co-opetition (sometimes spelled "coopertition" [1] or "co-opertition") is a neologism coined to describe cooperative competition. Coopetition is a portmanteau of cooperation and competition. Basic principles of co-opetitive structures have been described in game theory, a scientific field that received more attention with the book Theory of Games and Economic Behavior in 1944 and the works of John Forbes Nash on non-cooperative games. Coopetition occurs both at inter-organizational or intra-organizational levels.

Coopetition in practice[edit]

The concept appeared as early as 1913, being used to describe the relationships among proximate independent dealers of the Sealshipt Oyster System, who were instructed to cooperate for the benefit of the system while competing with each other for customers in the same city.[2] Giovanni Battista Dagnino and Giovanna Padula's conference paper (2002) [3] is considered a pioneering contribution. They conceptualized that, at inter-organisational level, coopetition occurs when companies interact with partial congruence of interests. They cooperate with each other to reach a higher value creation if compared to the value created without interaction and struggle to achieve competitive advantage. Often coopetition takes place when companies that are in the same market work together in the exploration of knowledge and research of new products, at the same time that they compete for market-share of their products and in the exploitation of the knowledge created. In this case, the interactions occur simultaneously and in different levels in the value chain. This is the case in the arrangement between PSA Peugeot Citroën and Toyota to share components for a new city car—simultaneously sold as the Peugeot 107, the Toyota Aygo, and the Citroën C1, where companies save money on shared costs while remaining fiercely competitive in other areas. Several advantages can be foreseen, as cost reductions, resources complementarity and technological transfer. Some difficulties also exist, as distribution of control, equity in risk, complementary needs and trust. It is possible for more than two companies to be involved in coopetition with one another. Another possible case for coopetition is joint resource management in construction. Sadegh Asgari and his colleagues [4] (2013) present a short-term partnering case in which construction contractors form an alliance, agreeing to put all or some of their resources in a joint pool for a fixed duration of time and to allocate the group resources using a more cost-effective plan. Sadegh Asgari, Abbas Afshar and Kaveh Madani[4] (2013) suggested cooperative game theory as the basis for fair and efficient allocation of the incremental benefits of cooperation among the cooperating contractors. Their study introduced a new paradigm in construction resource planning and allocation. Contractors no longer see each other as just competitors; They look for cooperation beyond their competition in order to reduce their costs.

At the intra-organizational level, coopetition occurs between individuals or functional units within the same organization. Based on game theory[5] and social interdependence theories, some studies investigate the presence of simultaneous cooperation and competition among functional units, the antecedents of coopetition, and its impact on knowledge sharing behaviors. For example, the concept of coopetitive knowledge sharing is developed to explain mechanisms through which coopetition influences effective knowledge sharing practices in cross-functional teams.[6] The underlying argument is that while organizational teams need to cooperate, they are likely to experience tension caused by diverse professional philosophies and competing goals from different cross-functional representatives.[7]

See also[edit]

Notes[edit]

  1. ^ Urban Dictionary, Coopertition, added 25 April 2008, accessed 20 November 2018
  2. ^ Paul Terry Cherington, Advertising as a Business Force: A Compilation of Experience Records, Doubleday, for the Associated advertising clubs of America, 1913, p. 144 (full text at Google Books)
  3. ^ Dagnino, Giovanni Battista; Padula, Giovanna (May 2002). "Coopetition strategy: Towards a new kind of interfirm dynamics for value creation" (PDF). EURAM 2nd annual conference, Stockholm School of Entrepreneurship, Sweden (pp. 8-10).
  4. ^ a b Asgari, Sadegh; Afshar, Abbas; Madani, Kaveh. "Cooperative Game Theoretic Framework for Joint Resource Management in Construction". Journal of Construction Engineering and Management. 140 (3). doi:10.1061/(asce)co.1943-7862.0000818.
  5. ^ Loebecke, C; Van Fenema, P; Powell, P (1999). "Coopetition and Knowledge Transfer". ACM SIGMIS Database - Special issue on information systems: current issues and future changes. 30 (2): 14–25.
  6. ^ Ghobadi, S. "Knowledge sharing in cross‐functional teams: a coopetitive model". Journal of Knowledge Management. 16 (2): 285–301. doi:10.1108/13673271211218889.
  7. ^ Ghobadi, Shahla; D'Ambra, John. "Coopetitive knowledge sharing: An analytical review of literature". The Electronic Journal of Knowledge Management. 9 (4): 307–317.

References[edit]

  • Brandenburger, Adam, and Nalebuff, Barry (1996). Co-Opetition: A Revolution Mindset That Combines Competition and Cooperation ISBN 0-385-47950-6
  • Bengtsson, M., and Kock, S. (2000). Coopetition in Business Networks: To Cooperate and Compete Simultaneously Industrial Marketing Management, Vol. 29, pp 411–426
  • Dagnino, Giovanni Battista, and Padula, Giovanna (2002). Coopetition Strategy: Towards a New Kind of Interfirm Dynamics for Value Creation, EURAM 2nd annual conference, Stockholm School of Entrepreneurship, Sweden 8–10 May.
  • Asaro, V. Frank (2011). Universal Co-opetition: Nature's Fusion of Cooperation and Competition. ISBN 978-1-936332-08-3.
  • Asaro, V. Frank (2012). The Tortoise Shell Code, a novel. ISBN 978-1-936332-60-1
  • Asaro, V. Frank (2014). A Primal Wisdom: Nature's Unification of Cooperation and Competition. ISBN 978-1-940784-23-6
  • Asaro, V. Frank (2015). The Tortoise Shell Game. ISBN 978-1-940784-49-6
  • Asaro, V. Frank (2015). A Primal Wisdom, 2d.Ed. ISBN 978-1-940784-55-7
  • Musolino, F (2012). "A Coopetitive Approach to Financial Markets Stabilization and Risk Management, Advances in Computational Intelligence". Communications in Computer and Information Science. 300: 578–592.
  • Musolino, F (2013). "Credit Crunch in the Euro Area: A Coopetitive Solution, in Multicriteria and Multiagent Decision Making with Applications to Economic and Social Sciences". Studies in Fuzziness and Soft Computing. 305: 27–48.
  • Schiliro, D (2012). "A Coopetitive Model for the Green Economy". Economic Modelling. 29 (4): 1215–1219.
  • Gnyawali, D. R.; Park, B.J. (2009). "Co-opetition and Technological Innovation in Small and Medium Enterprises: A Multi-Level Conceptual Model". Journal of Small Business Management. 47 (3): 308–330. doi:10.1111/j.1540-627X.2009.00273.x.
  • Gnyawali, D.R.; Park, B. J. (2011). "Co-opetition between Giants: Drivers and Consequences of Collaboration between Large Competitors". Research Policy. 40 (5): 650–663. doi:10.1016/j.respol.2011.01.009.
  • Czakon, W., Fernandez, A. S., & Minà, A. (2014). Editorial–From paradox to practice: the rise of coopetition strategies. International Journal of Business Environment, 6(1), 1-10.

External links[edit]