Coopetition among competitors in global industries: drivers that lead to coopetitive agreements

Author(s):  
Francesco Maurizio Garraffo ◽  
Suzanna Lamria Siregar

Purpose The purpose of this study is to focus on a growing strategic approach in global industries: the coopetition. Cooperation among competitors, namely, coopetition, is a strategic guideline in many global industries affected by technological innovation. This study discussed the effect of firm-, inter-firm- and industry-level drivers leading to coopetitive agreements in global industries affected by technological innovation. Design/methodology/approach By using an event history analysis, the authors develop a framework on firm-, inter-firm- and industry-level drivers on the likelihood of each competitor in the industry entering into coopetitive agreements in global competitive contexts. Empirical data are analyzed in five global industries: car industry, telecommunication industry, air transportation industry, bank industry and computer programming services industry. Findings The results of this study suggest that firms’ experience in cooperation (H1) predicts whether a firm will enter a coopetitive agreement. Moreover, the cultural similarity among competitors (H2) predicts whether a firm will enter a coopetitive agreement with a culturally similar competitor, while the total number of competitors already involved in coopetitive agreements (H3) has a low positive effect on the likelihood of a firm to coopete. Finally, the speed of agreements among competitors (H4) and the total number of coopetitive agreements in the industry (H5) (only in the car industry and software industry) are positively related to the chance of a firm entering into a coopetitive agreement. Research limitations/implications First, the authors identified and tested specific drivers of coopetition as a result of the literature review and data accessibility. The results may have omitted some variables able to further explain the event of coopetition. Second, the results of cultural distance versus cultural similarity revealed differences on firms’ behavior according to their different nationality. Chinese firms were the most oriented to deal coopetitive agreements with other Chinese firms, while firms from other countries were progressively less oriented by cultural similarity. These results may lead to studies of the “country of origin effect” on which partners to include in coopeititve agreements or which network of partners to join. Finally, the findings of this study are based on five industries over a specific ten years period of time. Consequently, the results certainly reflect the evolution of these industries over the time period considered. Practical implications The empirical investigation clarifies the relationship between decisions on strategy and competitive dynamics with the decision-making option to coopete. While managers take into account strategic moves against competitors, according to the authors’ investigation, it is valuable to consider coopetitive actions, especially when other competitors are involved in coopetitive agreements and the industry is affected by technological innovation. Moreover, the knowledge of drivers at the firm, inter-firm and industry level affecting coopetition is helpful to identify the weak or strong signals that show the rise and proliferation of coopetition in an industry. Social implications This study highlights the relevance of coopetition as an emerging approach in the competition among firms for developing or exploiting technological innovations. This approach can improve results in technological innovations that can have an impact in sustainability as well as new innovative solutions for social progress. Originality/value In literature, attention has been focused on drivers explaining the growing number of coopetitive agreements in several industries. Some contributions already discussed this topic from the perspective of costs and benefits for players. This study tries to continue to fill this research gap by studying, at firm, inter-firm and industry level, drivers of the likelihood of each competitor in the industry entering into coopetitive agreements in global competitive contexts.

2019 ◽  
Vol 30 (7) ◽  
pp. 1097-1114 ◽  
Author(s):  
Bang-Ning Hwang ◽  
Mu-Yen Hsu

Purpose For most manufacturing firms, technological innovations are usually the key strategies to gain their competitive advantages. However, competing strategically through service provision is becoming an important strategy for most industries. A growing demand for packaged product and service delivery is blurring the traditional boundaries between manufacturing and service firms. This trend is called “servitization.” Prior research had different perspectives on the relationship between technological innovations and servitization. Some argued that as servitization exerts the innovative convergence of products and services, the possession of appropriate readiness and absorption capacity through technological innovations for a manufacturing firm is critical to the success of servitization. In contrast, some argued that the knowledge gained from developing technological innovations cannot be applied to the creation of services due to the fundamental difference between technology and service. These contradicting arguments motivated the authors to study the relationship between technological innovations and servitization a step further. The paper aims to discuss these issues. Design/methodology/approach To address the research gap, the authors conducted an empirical study based on the large-scale samples from the second Taiwan Community Innovation Survey (Taiwan CIS). A multivariate logistic regression model was applied in the research. Findings The authors found that different types of technological innovations, namely product innovation and process innovation, have different impacts on servitization. The innovativeness level of the technological innovation moderates the relationship between technological innovation and servitization. Based on the above findings, this research specifically explains the causes of the contradictory results of the prior research. Originality/value The values of this research are twofold. Its academic contribution rests on bridging the literature of innovation and servitization, and on providing a model to clarify the relationships among technological innovation type, level of innovativeness and servitization. Its practical contribution lies in its establishment of a guideline that illuminates manufacturing firms reinforcing service delivery through their existing technological innovation trajectory.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wei Liu ◽  
Runhua Tan ◽  
Zibiao Li ◽  
Guozhong Cao ◽  
Fei Yu

Purpose The purpose of this paper is to investigate the diffusion patterns of knowledge in inspiring technological innovations and to enable monitoring development trends of technological innovations based on patent data analysis, thus, to manage knowledge wisely to innovate. Design/methodology/approach The notion of knowledge innovation potential (KIP) is proposed to measure the innovativeness of knowledge by the cumulative number of patents originated from its inspiration. KIP calculating formula is regressed in forms of two specific diffusion models by conducting a series of empirical studies with the patent-based indicators involving forward and backward citation numbers to reveal knowledge managing strategies regarding innovative activities. Findings Two specific diffusion models for regressing KIP formula are compared by empirical studies with the result indicating the Gompertz model has higher accuracy than the Logistic model to describe the developing curve of technological innovations. Moreover, the analysis of patent-based indicators over diffusion stages also revealed that patents applied at earlier diffusion stages normally has higher forward citation numbers indicating higher innovativeness meanwhile the patents applied at the latter stages usually requiring more knowledge inflows observed by their larger non-patent citation and backward citation amounts. Originality/value Although there is a large body of literature concerning knowledge-based technological innovation, there still room for discussing the mechanism of how knowledge diffuses and inspired knowledge. To the best of authors' knowledge, this study is the first attempt to quantitate the innovativeness of knowledge in technological innovation from the knowledge diffusion perspective with findings to support rational knowledge management related to innovation activities.


2016 ◽  
Vol 8 (4) ◽  
pp. 469-480 ◽  
Author(s):  
Deependra Sharma

Purpose The study aims to provide a comparative analysis of diverse challenges faced by different categories of hotels during the adoption of technological innovation. It also examines the role of technological innovations in enhancing the customer experience from a practitioner’s perspective. Design/methodology/approach Qualitative research is used to better understand the prevailing trends and execution challenges, using the interview method of collecting data. The sample includes owners and senior managers responsible for managing the property. Findings Indian hotels have lagged behind in technology adoption compared with their western counterparts, though the situation is now changing. The paper highlights the positive impact of technological innovation on customer experience and also identifies constraints in adopting technological innovations. Research limitations/implications All hotels participating in this study were selected from a single region of India. Hence, the results may not be a true representation of comparable hotels nationwide. Practical implications Findings of this study enable hotel managers and owners to appreciate the role of technological innovation as a differentiator and to understand a variety of nuances associated with technological innovation. Understanding of these dimensions will enable them to take cautious decisions about allocating resources for technological innovation and also to ensure that their customers are being offered maximum value-for-money. Originality/value The study was conducted in a developing economy where technological innovation is at a relatively early stage. This study explores its objectives from a practitioner’s perspective.


Author(s):  
Pauline Vromans ◽  
Marloes van Engen ◽  
Stefan Mol

Purpose – To introduce the presumed cultural similarity paradox as a possible explanation for the findings that adjusting to a culturally similar country is just as difficult as adjusting to a culturally dissimilar country. We provide a conceptual framework, enabling further understanding and research into this phenomenon. Design/methodology/approach – Expatriates moving to a country that shares common characteristics may presume more cultural similarity and easier adjustment than is actually the case. During their stay abroad, expatriates may find that these expectations are not met. While the smaller cultural distance may facilitate adjustment, the undermet expectations inhibit adjustment and performance. Findings – A first preliminary test compared Dutch expatriates in Belgium (culturally similar) and in China (culturally dissimilar). The expectations of cultural similarity and adjustment difficulty of the expatriates in Belgium were significantly more undermet than those of the expatriates in China and this had a negative influence on affective adjustment. The larger cultural distance of China was negatively related to intercultural adjustment. Better adjustment, both affective and intercultural, led to better job performance. Research limitations/implications – Future research should try to replicate and extend our findings to other cultural contexts. Practical implications – Expatriates and their employers must consider and prepare for the increased chance of undermet expectations and the negative consequences this can have on adjustment and job performance, when moving to a culturally similar country. Social implications – Expatriates and their employers must consider and prepare for the increased chance of undermet expectations and the negative consequences this can have on adjustment and job performance, when moving to a culturally similar country. Originality/value – This paper conceptualizes and provide a theoretical framework that should allow future research to empirically test the psychological process that occurs in this paradox, accommodate the contrasting effects of cultural distance and met expectations of cultural similarity and investigate which characteristics of countries lead expatriates to presume more cultural similarity than is the case.


2017 ◽  
Vol 32 (1) ◽  
pp. 167-178 ◽  
Author(s):  
Cristian Geldes ◽  
Jorge Heredia ◽  
Christian Felzensztein ◽  
Marcos Mora

Purpose This paper aims to use the proximity approach of economic geography with its spatial dimension (geographic) and their non-spatial dimensions (social, institutional, cognitive and organizational) to shed light on the determinants of business cooperation with other organizations. It is also examined whetherthis cooperation is a determining factor for business innovation (innovation networks), drawing a distinction between technological and non-technological innovations. Design/methodology/approach The study has a quantitative approach; it analyzes the case of 312 companies in a cluster of agribusinesses in an emerging economy (Chile). The proposal model and its interrelations are tested with exploratory factor analysis, confirmatory factor analysis and structural equation modeling. Findings The results show that cognitive-organizational proximity is a positive determinant of business cooperation with other organizations, whereas social and institutional proximity are negative determinants. It is also established that business cooperation is a positive determinant of business innovation. It is more relevant in the case of technological innovation unlike non-technological innovations. In addition, it is noted that business cooperation levels are lower in micro-enterprises, a result that differs from developed countries. Practical implications For business managers, it is best to cooperate with companies that are similar in terms of cognitive and organizational levels for innovation. At the same time, it is necessary develop strategies to reduce the social and institutional barriers to cooperation, especially in the agribusiness sector. Originality/value The contributions of the study are as follows: an in-depth quantitative examination of the relationships of various non-spatial proximities as determinants of business cooperation; an analysis of whether business cooperation with other organizations is a determining factor for business innovation, distinguishing between technological and non-technological innovation; and testing these relationships in the context of agribusiness in an emerging economy such as Chile’s because most of studies are related to high-tech sector and developed economies.


2020 ◽  
Vol 12 (5) ◽  
pp. 545-564
Author(s):  
Henny Indrawati ◽  
Caska ◽  
Suarman

Purpose This study aims to analyze the inhibiting factors of small and medium enterprises (SMEs’) technology innovation, supporting institutions for SMEs technology innovation development, SMEs’ technology innovation development model and strategies for developing SMEs in technology innovation. Design/methodology/approach This is a mixed-method research project conducted through a survey of SMEs in Riau Province, Sumatera Indonesia (primarily in the districts of Siak, Kampar and Pelalawan) from April to July 2019. SMEs that have been operating for at least five years were chosen purposively as samples. Based on the requirement, there are 277 entities used in this study. A focus group discussion (FGD) was also conducted to formulate SME models and development strategies in technological innovation. In addition, in-depth interviews and observations were also carried out on technological innovations undertaken by respondents. Findings It was found that there are five inhibiting factors of SMEs’ technology innovation: government support, quality of human resources, funding of technological innovation, economic conditions and business partners. The biggest inhibiting factor remains to be the funding of technological innovation. Therefore SMEs provide independent technological innovation costs to develop technological innovations for business sustainability. Supporting institutions for developing SME technology innovation consist of government institutions, private institutions, financial institutions (banks) and nonbank financial institutions. To survive and excel amid competition, SMEs need to pay attention to technological innovation. The business strategy that needs to be done is to improve services to consumers and improve their attitude toward innovation in the implementation and development of SMEs’ businesses. Research limitations/implications This research is limited to research on the inhibiting factors for SME technology innovation from the aspect of the production sector. This research has not studied various business fields in the trade, service and digital SME sectors. Future studies can reveal factors inhibiting SME technological innovation, except production aspects and various SME business fields. In addition, this study has not analyzed the cost of technological innovation provided by SMEs. Therefore, future studies could also reveal the large costs of technological innovation provided by SMEs. Originality/value This research investigates barriers hindering the SMEs’ technological innovations in Southeast Asia, including Indonesia as a maritime country. It also formulates strategies to reduce the barriers to SME’s technological innovation and contributes to the development of knowledge of technological innovations in SMEs. Moreover, this paper involves investigating government support from a nonfinancial aspect. To the best of the authors’ knowledge, this aspect has not been much discussed by studies on innovation at SMEs till now.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martin Ndzana ◽  
Onomo Cyrille ◽  
Gregory Mvogo ◽  
Thierry Bedzeme

PurposeThis article attempts to explain performance through the development of innovations within small and medium enterprises (SMEs). Specifically, the authors analyse the determinants of innovation and assess the role of technological and non-technological innovations in performance.Design/methodology/approachBased on a sample of 508 Cameroonian SMEs, the PSM (propensity score matching) technique was used to reduce the selection bias inherent in this type of analysis.FindingsThe results show that technological innovation does not influence significantly the performance of SMEs, whereas non-technological innovation positively influences it. The combination of these two types of innovation leads to better performance than even accentuated development of only one type.Practical implicationsTo improve the performance of SMEs, it is necessary to adopt a comprehensive innovation policy that combines non-technological and technological innovations. In addition, it is important to intensify informations and communication technologies (ICT) promotion policies that contribute to the adoption of innovations within enterprises.Originality/valueThis paper contributes to the literature by showing the role of technological and non-technological innovations in explaining the performance of SMEs. Moreover, unlike the existing work in sub-Saharan Africa, which is limited to testing the innovation–performance relationship, this study also determines the productivity gain generated by innovative firms compared to non-innovative ones.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nuria Recuero-Virto ◽  
Cristina Valilla-Arróspide

PurposeIn a sector that needs to satisfy a fast-increasing population, advancements like cultivated meat and bio-circular economy are basic to sustain the industry and the society. As innovations are key for economic and social progress, it is crucial to understand consumers' position on this matter.Design/methodology/approachBased on text data mining, 7,030 tweets were collected and organised into 14 different food-related topics. Of the total, 6 of these categories were positive, 5 were negative and 3 were neutral.FindingsIn total, 6 categories related to food technologies were positively perceived by Twitter users, such as innovative solutions and sustainable agriculture, while 5 like the virtual dimensions of the industry or crisis-related scenarios were negatively perceived. It is remarkable that 3 categories had a neutral sentiment, which gives ground to improvement before consumers have a negative opinion and consequently will be more complicated to change their minds.Originality/valueTechnological innovations are becoming predominant in the food industry. The SARS-CoV-2 pandemic has made the sector improve even faster. Traditional methods needed to be substituted and technologies such as robots, artificial intelligence, blockchain and genetics are here to stay.


2017 ◽  
Vol 55 (8) ◽  
pp. 1749-1769 ◽  
Author(s):  
Wenhong Zhang ◽  
Yapu Zhao ◽  
Longwei Tian ◽  
Dong Liu

Purpose The purpose of this paper is to explore how boundary-spanning demand-side search (BSDSS) fuels radical technological innovations as well as how innovation appropriability moderates this relationship. In particular, based on Teece’s (1986) argument regarding the appropriability of innovation, the authors divide factors to influence innovation appropriability into two types: external institution related and internal capability related. Design/methodology/approach This study employs a survey methodology. Specifically, the authors collected a sample composed of 150 high-tech manufacturing Chinese firms. Findings Results show that BSDSS has a positive effect on radical technological innovations. Further, the authors find that dysfunctional competition and political ties negatively moderate the main effect, whereas firms’ legal and IPRs protection capabilities positively moderate the main effect. Research limitations/implications One major limitation is that the findings are based on data derived from Chinese firms, which may limit the generalization of the findings. Practical implications The findings suggest that firms competing Chinese market, both Chinese and foreign firms, should actively leverage BSDSS to boost radical technological innovations. Chinese firms should pay attention to the negative roles of appropriability hazards originating from external institutional environment. Foreign firms in Chinese market should be cautious on potential dysfunctional competition from local competitors, such as imitation and intelligence property violation, and enhance appropriability through building internal capabilities, such as legal and IPRs capabilities. Originality/value The study highlights the crucial roles of BSDSS in radical technological innovations, as well as the moderating roles of innovation appropriability. These results provide new insights into the drivers of radical technological innovations.


2015 ◽  
Vol 7 (2) ◽  
pp. 205-218
Author(s):  
Sunil Sahadev ◽  
Pongsak Hoontrakul

Purpose – This conceptual paper aims to discuss issues relevant to fostering cooperation between India and countries in the ASEAN region in the area of technological innovation. Design/methodology/approach – This is a conceptual paper, based on insights from the existing body of literature and secondary data. Findings – The study looks at the competitiveness of different countries in the ASEAN region and considers their technological competitiveness vis-à-vis India. Broad policy issues related to fostering technological innovation as well as the main advantages of such collaboration are discussed. Research limitations/implications – This is a conceptual paper mainly intended for discussion. Practical implications – The paper provides guidelines for fostering technological innovation and could, therefore, help policy development. Originality/value – Although the Indo-ASEAN free-trade agreement is helping trade flow between the countries in the region, the potential for technological collaborations still lies unutilised. This paper looks at the possibilities for such collaborations and is one of the few papers that consider this line of thinking.


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