Coopetition or co-opetition (sometimes spelled "coopertition" 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.
The concept and term coopetition and its variants have been re-coined several times in history.
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.
The term and the ideas around co-opetition gained wide attention within the business community after the publication in 1996 of the book by Brandenberger and Nalebuff bearing the same title. Until today this remains the reference work for both researchers and practitioners alike.
Giovanni Battista Dagnino and Giovanna Padula's conceptualized in their conference paper (2002)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(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.
Marcello Mariani (2007)examined that in practice policy makers and regulators can trigger, promote, and affect coopetitive interactions among economic actors that did not intentionally plan to coopete before the external institutional stakeholders (i.e., a policy maker or regulator) created the conditions for the emergence of coopetititon.
Sadegh Asgari, Abbas Afshar and Kaveh Madani(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 theoryand 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. 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.
In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's top managers on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization operates. Strategic management provides overall direction to an enterprise and involves specifying the organization's objectives, developing policies and plans to achieve those objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision-making in the context of complex environments and competitive dynamics. Strategic management is not static in nature; the models often include a feedback loop to monitor execution and to inform the next round of planning.
In business, a competitive advantage is the attribute that allows an organization to outperform its competitors. A competitive advantage may include access to natural resources, such as high-grade ores or a low-cost power source, highly skilled labor, geographic location, high entry barriers, and access to new technology.
Porter's Five Forces Framework is a method for analyzing competition of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness of an industry in terms of its profitability. An "unattractive" industry is one in which the effect of these five forces reduces overall profitability. The most unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit levels. The five-forces perspective is associated with its originator, Michael E. Porter of Harvard University. This framework was first published in Harvard Business Review in 1979.
Tit for tat is an English saying meaning "equivalent retaliation". It developed from "tip for tap", first used in 1558.
A consortium is an association of two or more individuals, companies, organizations or governments with the objective of participating in a common activity or pooling their resources for achieving a common goal.
A cross-functional team is a group of people with different functional expertise working toward a common goal. It may include people from finance, marketing, operations, and human resources departments. Typically, it includes employees from all levels of an organization. Members may also come from outside an organization.
A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. A strategic alliance will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. Typically, two companies form a strategic alliance when each possesses one or more business assets or have expertise that will help the other by enhancing their businesses. Strategic alliances can develop in outsourcing relationships where the parties desire to achieve long-term win-win benefits and innovation based on mutually desired outcomes.
A strategic partnership is a relationship between two commercial enterprises, usually formalized by one or more business contracts. A strategic partnership will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. Strategic partnerships can take on various forms from shake hand agreements, contractual cooperation's all the way to equity alliances, either the formation of a joint venture or cross-holdings in each other.
Barry J. Nalebuff is a Milton Steinbach Professor of Management at Yale School of Management and author who specializes in business strategy and game theory. His published books include Thinking Strategically and The Art of Strategy. Nalebuff's class on negotiation has over 67,000 active learners through Coursera and has the second-highest net promoter score on the platform. He has a semi-regular column in Forbes with Ian Ayres called "Why Not?"
In evolution, co-operation is the process where groups of organisms work or act together for common or mutual benefits. It is commonly defined as any adaptation that has evolved, at least in part, to increase the reproductive success of the actor's social partners. For example, territorial choruses by male lions discourage intruders and are likely to benefit all contributors.
Innovation management is a combination of the management of innovation processes, and change management. It refers to product, business process, marketing and organizational innovation. Innovation management is the subject of ISO 56000 series standards being developed by ISO TC 279.
Philippe N. Baumard graduated from the University of Aix-Marseille II, and Paris Dauphine University. Philippe Baumard is an organizational scientist who has held visiting professorships at New York University from 1997 to 1998, University of California, Berkeley from 2004 to 2007, Stanford University from 2008 to 2010. He is currently Professor at the French National Conservatory of Arts and Crafts (CNAM), associate-researcher at École Polytechnique's Chair on Innovation & Regulation, Paris, Professor at the School of Economic Warfare, Paris, and President of the scientific council of France's High Council for Strategic Education and Research
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Vincent Mangematin is a French researcher and professor in management, specialized in Strategy, Strategic management of Innovation and Technology Management. He is currently professor and scientific director at Grenoble Ecole de Management.
'A management system is the framework of processes and procedures used to ensure that an organization can fulfill all tasks required to achieve its objectives.
In R&D management and systems development, open coopetition or open-coopetition is a neologism to describe cooperation among competitors in the open-source arena. The term was first coined by the scholars Jose Teixeira and Tingting Lin to describe how rival firms that, while competing with similar products in the same markets, collaborate which each other in the development of open-source projects.
Co-opetition: A Revolution Mindset that Combines Competition and Cooperation is a non-fiction book on coopetition, business strategy, and game theory by Adam M. Brandenburger and Barry J. Nalebuff. The book was initially published by Crown Business on May 1, 1996. As of 2015, the book is still available in its 9th printing.
Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life is a non-fiction book by Indian-American economist Avinash Dixit and Barry Nalebuff, a professor of economics and management at Yale School of Management. The text was initially published by W. W. Norton & Company on February 1, 1991.
Co-opetition or coopetition – simultaneous competition and cooperation – is an important philosophy or strategy that goes beyond the conventional rules of competition and cooperation to achieve advantages of both. Global co-opetition, an application of co-opetition in a global context, is first systematically addressed in Luo’s (2004) book “Coopetition in international business”. According to this book, global co-opetition refers to the simultaneous competition and cooperation between multinational enterprises (MNEs) and their geographically dispersed business stakeholders such as global rivals, global suppliers, global distributors, global alliance partners, and foreign governments as well as among foreign subsidiaries within an MNE.
Cooperative strategy refers to a planning strategy in which two or more firms work together in order to achieve a common objective. Several companies apply cooperative strategies to increase their profits through cooperation with other companies that stop being competitors.