scholarly journals The dark side of coopetition: when collaborating with competitors is harmful for company performance

2019 ◽  
Vol 35 (2) ◽  
pp. 318-337 ◽  
Author(s):  
James M. Crick

Purpose Coopetition is the interplay between cooperation and competition, involving organisations sharing resources and capabilities with rival entities. Earlier work has suggested that coopetition has a linear (positive) relationship with company performance, with scarce considerations towards whether this link could have a diminishing-returns effect. Thus, this paper aims to examine the non-linear (quadratic) relationships between coopetition and three performance outcomes. Using resource-based theory and the relational view, this study is designed to evaluate the dark side of coopetition, in terms of identifying situations when such activities can be harmful for company performance. Design/methodology/approach Survey data were collected from a sample of 101 vineyards and wineries in New Zealand. After purifying the measures through a series of multivariate statistical techniques, the research hypotheses and control paths were tested through hierarchical regression. Furthermore, the statistical data passed all major assessments of reliability and validity (including common method variance). Findings Coopetition was found to have non-linear (quadratic) relationships with customer satisfaction performance, market performance, and financial performance. These results indicate that while coopetition provides organisations with new resources, capabilities and opportunities, there are some dark sides of coopetition activities. With “too little” coopetition, firms might struggle to survive within their markets, with an insufficient volume of resources and capabilities. With “too much” coopetition, companies could experience increased tensions, potentially lose intellectual property and dilute their competitive advantages. Such negative outcomes could harm their performance in several capacities. Practical implications Firms should appreciate that coopetition is a competitive strategy. In other words, regardless of how much collaboration occurs, coopetition partners are still competing entities. It is recommended that organisations should strive to engage in an “optimal-level” of coopetition, as “too little” or “too much” of such strategies can be harmful for various types of company performance. To mitigate some of the dark sides of coopetition, businesses should attempt to use all the benefits of collaborating with competitors (i.e. accessing new resources, capabilities and opportunities), but at the same time, not become dependent on rivals’ assets. Originality/value This paper develops and tests a framework examining the non-linear (quadratic) linkages between coopetition and multiple assessments of company performance. It highlights the benefits and drawbacks of businesses sharing resources and capabilities with their competitors. Contrary to prior studies in the business-to-business marketing literature, the results signify that firms need to engage in an “optimal-level” of coopetition to minimise certain dark sides, such as reduced company performance. After providing some practitioner implications, this paper ends with a series of limitations and avenues for future research.

2019 ◽  
Vol 34 (2) ◽  
pp. 518-531 ◽  
Author(s):  
James M. Crick

PurposeThe purpose of this paper is to examine the moderating factors that could affect the relationship between coopetition (the interplay between cooperation and competition) and company performance.Design/methodology/approachUnder the relational view and resource-based theory, key articles surrounding coopetition were reviewed. A conceptual framework (with six research propositions) was developed to understand the nature of the relationship between coopetition and company performance.FindingsWhile the coopetition – company performance relationship has been well-studied, this link could be moderated by the competitive business environment, organizational resources and capabilities, and trust between rivals. Further, most authors have explored the linear relationship between coopetition and company performance; however, in this paper, the non-linear (inverted U-shaped) link is also conceptualized, whereby firms might experience “too little” and “too much” coopetition in their business strategies.Practical implicationsManagement teams should engage in an “optimal-level” of coopetition by sharing resources and capabilities with rival firms, but not to the extent where they depend on such competitors. If firms rarely collaborate with their competitors, they risk not being able to achieve their performance objectives. Likewise, if businesses engage in excessive degrees of coopetition, there could be tensions between the rival companies involved. Also, practitioners should be aware of the factors that can improve or reduce their performance when they implement coopetition activities. By taking: the competitive business environment, organizational resources and capabilities, and trust between rivals into consideration, the themes of this paper should be used to help managers to maximize company performance (considered in multiple capacities).Originality/valueThis paper is used to help scholars and practitioners to understand the factors that could help or hinder the performance outcomes of coopetition activities. By appreciating the moderating roles of the competitive business environment, organizational resources and capabilities, and trust between rivals, managers are anticipated to provide themselves with scope to alter their coopetition activities to improve their performance. This article ends with a series of managerial implications, alongside some limitations and avenues for future research.


2017 ◽  
Vol 7 (5) ◽  
pp. 471-489 ◽  
Author(s):  
Tayyab Ahmad ◽  
Ajibade A. Aibinu

Purpose While the general trends in green building (GB) research are known, there is not yet a detailed review of studies on project delivery attributes (PDAs) influencing GB project outcomes. The purpose of this paper is to review the literature to understand the contributions of existing research in this area and to identify the challenges, gaps, and lessons for the future research relating GB project delivery. Design/methodology/approach For the systematic review, specially developed coding based on Boolean operators is used to search for relevant studies in major databases, i.e. Web of Science and Scopus. The studies from the initial search (443) are subjected to two rounds of scrutiny for shortlisting only relevant publications. Using a qualitative review of the shortlisted studies (20), the research objectives and findings of the studies are synthesized and critically analyzed. The contributions and challenges facing research in this area are identified. Future research directions are proposed. Findings Studies in the area have established association between PDAs and various GB project success criteria. In the literature, some PDAs such as project delivery method have been given greater attention than others. Challenges facing PDA research in GB include: the limited number of GB project cases and the complexity of GB project delivery process involving an overwhelmingly large number of variables, thereby limiting scientific rigor and creating some gaps in knowledge. The interaction among PDAs and their cumulative effect on various project performance outcomes/metrics have not been studied, limiting the validity of the existing studies. Scope exists to apply a combination of non-linear, dynamic, probabilistic, explicit, and implicit modeling as well as inductive and deductive approaches to research in this area. Research limitations/implications Existing research findings have limited application in practice. Non-linear, dynamic, probabilistic, deductive, and inductive research techniques and approaches can substantially advance knowledge and lead to plausible findings that can be applied in practice. Originality/value Considering the critical role of PDAs in the successful delivery of GBs, the review provides clear directions for future research.


Author(s):  
Jean-François Stich ◽  
Samuel Farley ◽  
Cary Cooper ◽  
Monideepa Tarafdar

Purpose – The purpose of this paper is to review four demands employees face when communicating through information and communication technologies (ICTs). The authors review the outcomes associated with each demand and discuss relevant interventions to provide a set of evidence-based recommendations. Design/methodology/approach – This paper reviews the following demands associated with ICTs: response expectations, constant availability, increased workload and poor communication. The authors draw upon empirical research to highlight outcomes and intervention strategies, before discussing implications for research and practice. Findings – The findings suggest that there are diverse outcomes associated with each demand. The outcomes were not inherently negative as evidence suggests that positive performance outcomes can arise from response expectations and constant availability, although they may be allied by health and well-being costs. Practical implications – A number of practical strategies are described to help organizations address computer-mediated communication demands, including tailored training, organizational policies and role modeling. The paper also outlines suggestions for future research on the dark side of IT use. Originality/value – This paper integrates four interrelated demands that employees can face when communicating through technology. The authors extend knowledge by analyzing interventions which enables a synthesis of implications for practice.


2019 ◽  
Vol 25 (6) ◽  
pp. 1228-1250 ◽  
Author(s):  
Lidia Sanchez-Ruiz ◽  
Beatriz Blanco ◽  
Emma Diaz

Purpose The purpose of this paper is to define a general and common construct in order to measure the level of difficulty companies experience when they implement continuous improvement (CI). Additionally, a rank of barriers is obtained together with a rank of companies. Design/methodology/approach In order to achieve the objective, first, a literature review is carried out to specify the domain of the construct; second, a sample of items is selected; third a survey is carried out in companies that have already implemented CI initiatives, the results being thus limited to this population; fourth, measures are purified by analysing the reliability and validity of the measurements, and finally results are obtained. The Rasch measurement theory will be used to provide a new perspective on a mature research topic. Findings It can be concluded that a new valid construct has been defined together with a rank of CI barriers, being lack of time the main barrier. A rank of companies is also obtained which is a first step in the development of future research studies. Practical implications Managers are provided with a better understanding of the barriers that can obstruct CI implementation. Thus, the rank of CI barriers guides managers through the most common and important obstacles so that they will be able to plan better CI strategies. In addition, the rank of companies allows each company to undertake a benchmarking exercise. Originality/value This work proposes a new way of analysing the difficulty in implementing CI as a continuum, rather than as independent barriers. From a theoretical point of view, it defines a new construct and offers a rank of CI barriers together with a rank of companies based on their level of difficulty when implementing CI initiatives. This is something new, as previous studies were mainly focussed on the items side. From a practical point of view, this study offers the surveyed companies the opportunity to see how they are positioned with respect to the other companies. Moreover, this rank of companies is the foundation on which to develop further studies with a practical orientation in the future.


Author(s):  
Vilani Sachitra ◽  
Siong-Choy Chong

Purpose The agribusiness sector has long been acknowledged as a major source of livelihood to many people in developing countries. Hence, determining the resources and capabilities influencing farm-level competitive advantage are vital to better understand and formulate appropriate strategies to increase the competitiveness ofminor export crops farms. This study aims to understand of the link between resources-capabilities-competitive advantage for appropriate measures to be recommended to enhance the competitive position of the smallholding farms. Design/methodology/approach This study adopts the resource-based view in combination with dynamic capabilities. The scope comprises owners of farms who possess experience in commercial cultivation of minor export crops in Sri Lanka. A self-administrated structured questionnaire was used to collect data. Findings Based on the responses from 456 farm owners, results of the multiple regression analysis indicate that variables representing resources such as human assets, physical assets, financial assets, institutional capital, collective action and entrepreneurial identity; and dynamic capabilities such as organisational learning, relationship building, quality management and marketing are significantly associated with competitive advantage of the minor export crops farms. Reputation and farm process management capability are the only two insignificant variables. Taken together, the resources and dynamic capabilities investigated explain 89.3 per cent of the variation in competitive advantage, in which 82 per cent is contributed by resources. Originality/value The findings provide useful insights not only in terms of understanding the link between resources, dynamic capabilities and competitive advantage but also how resources and capabilities can be channelled and leveraged to bring about competitive advantage to the minor export crops farms. Theoretical and practical implications as well as future research directions are provided.


2020 ◽  
Vol 12 (3) ◽  
pp. 273-295
Author(s):  
Elisa Mohanty ◽  
Anindya Jayanta Mishra

Purpose The widespread use of information and communication technologies (ICTs) has had a significant effect on various groups and communities of people including micro, small and medium enterprises (MSMEs) and their owners/managers. The current study aims to analyze recent literature regarding adoption of ICTs by MSMEs. Further, it tries to locate gender within this broader context of diffusion of ICTs among MSMEs. Design/methodology/approach Using the thematic analysis approach, the research articles pertaining to six leading journals on ICTs, gender and entrepreneurship published during the time period from 2011 to 2019 are reviewed. Findings The literature selected for the study has been discussed under two primary categories, viz. “adoption of information and communication technologies for development (ICT4D) for business purposes” and “insights on gender in ICT4D use by MSMEs.” Research limitations/implications The context-dependent nature of ICT use can enable future entrepreneurs to assess the scope of specific ICTs in given areas of operation. The gendered nature of ICTs helps to evaluate as well as question the empowerment potential of ICTs. The study emphasizes the need to account for historical specificities and transnational linkages in understanding access, adoption and use of ICT4D by women MSME entrepreneurs. Originality/value The study bridges together literature on ICT4D use by MSMEs and the role of gender in ICT-mediated entrepreneurial environments. While unraveling the interplay of power dynamics in such environments, the scope for future research in terms of tapping into the content of information exchanges and exploring the implications of “dark side of internet” for women MSME entrepreneurs is also indicated.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suaad Jassem ◽  
Zarina Zakaria ◽  
Anna Che Azmi

PurposeThis study aims to assess the current state of research on the use of sustainability balanced scorecards (SBSCs), as they relate to environmental performance-related outcomes. It also seeks to present a conceptual framework proposing relationships between SBSC and environmental performance.Design/methodology/approachThis paper conducts a systematic literature review of articles published in double-blind peer-reviewed journals that are listed on Scopus and/or Web of Science databases.FindingsThe first part of the paper reveals that two architectures of SBSC appear to be dominant in the literature (SBSC-4 where sustainability parameters are integrated with the four perspectives of the balanced scorecard and SBSC-5 where sustainability is shown as an additional standalone fifth perspective). The next part of the paper presents a conceptual model relating SBSC as decision-making tools to environmental performance outcomes. The paper also indicates that SBSC knowledge mediates the above relationships. Furthermore, based on the theory of expert competence, the presence of experts possibly moderates the relationship between SBSC architecture and environmental performance outcomes.Research limitations/implicationsThe literature indicates a lack of consensus on establishing a clear linkage on the relationship between SBSC architecture and environmental performance outcomes. As a result, a holistic conceptual framework where SBSC knowledge acts as a mediator and presence of experts as a moderator may be able to provide a more consistent relationship between SBSC architecture and environmental performance outcomes.Practical implicationsThe conceptual framework proposed provides factors to be considered by decision makers, for effective outcomes when aiming to achieve environmental stewardship objectives.Social implicationsEnvironmental performance by business organisations have come under close scrutiny of stakeholders. As a result, the holistic model proposed in the current study may pave the path for decision-makers to achieve superior environmental outcomes, leading to greater satisfaction of stakeholders such as the communities that are impacted by the business operations of an organisation.Originality/valueThis is the first paper to propose a model for future research regarding the link between SBSC and environmental performance outcomes – with expert managers acting as moderators and SBSC knowledge acting as a mediator.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guydeuk Yeon ◽  
Paul C. Hong ◽  
Elangovan N. ◽  
Divakar G. M.

Purpose The COVID-19 pandemic presents unprecedented challenges for small and medium enterprises (SMEs) in emerging economies. This paper aims to examine how India's SMEs implement their strategic responses in this crisis. Design/methodology/approach The study uses dynamic capability theory to explore the strategic responses of SMEs. Strategy implementation theory helps to explain how they implement innovative practices for outcomes. A research model defines the COVID-19 challenges, strategic responses and performance outcomes. The study reports the findings of an initial pilot study of 75 firms and follow-up case study results in the context of COVID-19. Findings Firms choose their approaches according to their perceived market risks. Case studies illustrate that firms display diverse attitudes depending on their strategic direction, leadership vision and organizational culture. They achieve different outcomes by implementing specific styles of risk management practices (e.g. risk-averting, risk-taking and risk-thriving). Research limitations/implications Although the study context is Indian SMEs, the findings suggest meaningful lessons for other emerging economies in similar crisis events. The propositions may be extended to future research in broad contexts. Practical implications Even in the extraordinary COVID-19 market crisis, SMEs with limited resources display their strategic potential by recognizing their unique capabilities, translating them into effective actions and achieving desirable outcomes. Social implications In the COVID-19 pandemic, top leaders' mental attitude, strategic perspective and routine practices are contagious. Positive leadership motivates both internal and external stakeholders with an enormous level of collaboration. Originality/value This rare study of Indian SMEs provides a theoretical framework for designing a pilot survey and conducting a case study of multiple firms. Based on these findings, testable propositions are articulated for future research in diverse organizational and national contexts.


2019 ◽  
Vol 16 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Bakil DhaifAllah ◽  
Sofiah Md-Auzair ◽  
Ruhanita Maelah ◽  
Md Daud Ismail

Purpose This paper aims to investigate the effect of product complexity and communication quality on inter-organizational cost management (IOCM) and open book accounting (OBA) practices in buyer–supplier relationships in Malaysian manufacturing firms. Design/methodology/approach A questionnaire survey was administrated to CFOs or accounting managers of Malaysian suppliers. Exploratory factor analysis and Structural Equation Modeling procedures were applied to test convergent and discriminant validity of the measurement model and examine the relationships among the latent constructs in the structural model. Findings The results suggest that IOCM and OBA scales show acceptable reliability and validity. The findings also report that both product complexity and communication quality have a positive effect on IOCM and OBA in buyer–supplier relationships. However, the results suggest that IOCM does not influence OBA practice. Research limitations/implications Although IOCM and OBA constructs exhibited satisfactory reliability and validity, future research is required to refine and further validate these constructs. The data were only collected from the supplier’s perspective. Thus, future research is invited to benefit from matched data from both suppliers and buyers to generate additional insights on IOCM and OBA. Practical implications This study may assist suppliers and buyers in relationships by suggesting that complex products require the adoption of IOCM and OBA practices to reduce information asymmetries and manage costs. Furthermore, emphasizing quality of communication may enhance the implementation of these practices. Originality/value Theoretically, this study contributes to the academic stream of management accounting and cost management as it enhances an understanding of contributions introduced in prior literature on IOCM and OBA. It uses a complementary approach of transaction cost theory (TCT) and social exchange theory (SET) to explain the research model. Methodologically, the study validated scales for measuring IOCM and OBA in a new environment.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hammed Oluwaseyi Musibau ◽  
Waliu Olawale Shittu ◽  
Fatai Olarewaju Ogunlana

Purpose The purpose of this paper is to study the relationship among environmental degradation, energy use and economic growth, thus lending a voice to testing the relevance, or otherwise, of the environmental Kuznets curve (EKC) hypothesis in Nigeria. Design/methodology/approach The authors rely on the secondary data obtained from World Bank’s World Development Indicators for Nigeria, between 1981 and 2014. The non-linear autoregressive distributed lag (ARDL) technique is used after examining the unit root properties – using the augmented Dickey–Fuller and Phillips–Perron methods – and the long-run relationship – using the ARDL bounds approach to estimate the asymmetries in the effects of economic growth on the environment. Findings The findings of this study uphold the relevance of the EKC hypothesis in Nigeria, as the growth of GDP first reduces the environmental quality but raises it over time. Furthermore, the use of energy is found to deteriorate environmental quality, given that CO2 rises by 0.002% for a unit increase in the consumption of energy in Nigeria. Research limitations/implications A limitation to this research is the data coverage, which is just between 1981 and 2014, based on availability. One other limitation is the use of electric power consumption as a proxy for energy use (because of the difficulty in obtaining accurate data on energy consumption in Nigeria). Future research should, therefore, test different other proxies, to either agree with the findings or justify any deviation therefrom. Also, the use of up-to-date data is recommended as an improvement to this study, while a non-linear technique should be used on studies involving the panel of countries. Originality/value Many studies have examined this relationship by simply taking the square of GDP as a measure of its non-linear effect on the environment. The authors are one of the first who consider the asymmetric effect of economic growth on the environment through the non-linear ARDL technique. With this, the partial sums of positive and negative changes in economic growth on the environment are easily established.


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