IDEAS home Printed from https://ideas.repec.org/a/men/journl/v7y2021i2p133-151.html
   My bibliography  Save this article

Coopetition and Small Firms Value Creation

Author

Listed:
  • Adedeji Saidi Adelekan

    (Dominican University, Ibadan, Nigeria)

  • James Olanipekun Ojo

    (Mountain Top University, Ibafo, Nigeria)

  • Powel Maxwell Worimegbe

    (Olabisi Onabanjo University, Ago-Iwoye, Nigeria)

Abstract

Small firms are faced with the challenges of competing with larger firms. This has given birth to utilising different strategies to enhance the small firms' capacity to achieve their corporate goals. This study examines the nature of coopetition among small firms and how it has influenced their ability to create value. Employing the survey research design, the study sampled 1119 small firms and established the interaction between coopetition and value creation in small firms using the partial least square-structural equation model. The results reveal entrepreneurial orientation is the most prevalent type of coopetition among small firms and that coopetition is a significant driver of value creation among small firms. The study recommends that small firms should integrate coopetition into their strategy to remain relevant, increase their revenue, customise their services through value-added services and create new products and services.

Suggested Citation

  • Adedeji Saidi Adelekan & James Olanipekun Ojo & Powel Maxwell Worimegbe, 2021. "Coopetition and Small Firms Value Creation," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(2), pages 133-151.
    • Handle: RePEc:men:journl:v:7:y:2021:i:2:p:133-151
    DOI: 10.11118/ejobsat.2021.015
    as

    Download full text from publisher

    File URL: http://ejobsat.cz/doi/10.11118/ejobsat.2021.015.html
    Download Restriction: free of charge
    File URL: http://ejobsat.cz/doi/10.11118/ejobsat.2021.015.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/ejobsat.2021.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bouncken, Ricarda B. & Fredrich, Viktor, 2016. "Business model innovation in alliances: Successful configurations," Journal of Business Research, Elsevier, vol. 69(9), pages 3584-3590.
    2. Joanna Cygler & Włodzimierz Sroka & Marina Solesvik & Katarzyna Dębkowska, 2018. "Benefits and Drawbacks of Coopetition: The Roles of Scope and Durability in Coopetitive Relationships," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    3. Windsor, Duane, 2013. "Corporate social responsibility and irresponsibility: A positive theory approach," Journal of Business Research, Elsevier, vol. 66(10), pages 1937-1944.
    4. Luo, Yadong, 2007. "A coopetition perspective of global competition," Journal of World Business, Elsevier, vol. 42(2), pages 129-144, June.
    5. Bouncken, Ricarda B. & Kraus, Sascha, 2013. "Innovation in knowledge-intensive industries: The double-edged sword of coopetition," Journal of Business Research, Elsevier, vol. 66(10), pages 2060-2070.
    6. Pedro M. Gardete, 2016. "Competing Under Asymmetric Information: The Case of Dynamic Random Access Memory Manufacturing," Management Science, INFORMS, vol. 62(11), pages 3291-3309, November.
    7. Werner H. Hoffmann, 2007. "Strategies for managing a portfolio of alliances," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 827-856, August.
    8. Wojciech Czakon & Mariusz Rogalski, 2014. "Coopetition typology revisited - a behavioural approach," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 6(1), pages 28-46.
    9. Asma Zgarni, 2019. "Cooperation or Coopetition Strategy: What is the Best Strategy Face to Competition’ Intensity and Strategic Capabilities?," International Review of Management and Marketing, Econjournals, vol. 9(5), pages 114-124.
    10. Kylänen, Mika & Rusko, Rauno, 2011. "Unintentional coopetition in the service industries: The case of Pyhä-Luosto tourism destination in the Finnish Lapland," European Management Journal, Elsevier, vol. 29(3), pages 193-205, June.
    11. Keith Walley, 2007. "Coopetition: An Introduction to the Subject and an Agenda for Research," International Studies of Management & Organization, Taylor & Francis Journals, vol. 37(2), pages 11-31, January.
    12. Alexander McKelvie & Johan Wiklund, 2010. "Advancing Firm Growth Research: A Focus on Growth Mode Instead of Growth Rate," Entrepreneurship Theory and Practice, , vol. 34(2), pages 261-288, March.
    13. Frédéric Le Roy & Wojciech Czakon, 2016. "Managing coopetition: the missing link between strategy and performance," Post-Print hal-02012534, HAL.
    14. Ritala, Paavo & Tidström, Annika, 2014. "Untangling the value-creation and value-appropriation elements of coopetition strategy: A longitudinal analysis on the firm and relational levels," Scandinavian Journal of Management, Elsevier, vol. 30(4), pages 498-515.
    15. Ricarda Bouncken & Johanna Gast & Sascha Kraus & Marcel Bogers, 2015. "Coopetition: a systematic review, synthesis, and future research directions," Post-Print hal-02018068, HAL.
    16. Ricarda Bouncken & Johanna Gast & Sascha Kraus & Marcel Bogers, 2015. "Coopetition: a systematic review, synthesis, and future research directions," Post-Print hal-02945341, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mierzejewska Wioletta, 2023. "Does coopetition pay off? Benefits of intra-organizational coopetition within business groups," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(2), pages 150-167, June.
    2. Youngwook Ko & Yanghon Chung & Hangyeol Seo, 2020. "Coopetition for Sustainable Competitiveness: R&D Collaboration in Perspective of Productivity," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    3. Wioletta Mierzejewska, 2022. "Understanding Coopetition Within Multinational Corporations: The Perspective of Relationship Between Subsidiaries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(3), pages 371-385, September.
    4. Patrycja Klimas & Ali Ashraf Ahmadian & Morteza Soltani & Meisam Shahbazi & Ali Hamidizadeh, 2023. "Coopetition, Where Do You Come From? Identification, Categorization, and Configuration of Theoretical Roots of Coopetition," SAGE Open, , vol. 13(1), pages 21582440221, January.
    5. Eduard Gabriel Ceptureanu & Sebastian Ion Ceptureanu & Violeta Radulescu & Stefan Alexandru Ionescu, 2018. "What Makes Coopetition Successful? An Inter-Organizational Side Analysis on Coopetition Critical Success Factors in Oil and Gas Distribution Networks," Energies, MDPI, vol. 11(12), pages 1-20, December.
    6. Xiaotian Yang, 2022. "Coopetition for innovation in R&D consortia: Moderating roles of size disparity and formal interaction," Asia Pacific Journal of Management, Springer, vol. 39(1), pages 79-102, March.
    7. Xie, Qiuhao & Gao, Ying & Xia, Nini & Zhang, Shuibo & Tao, Guowu, 2023. "Coopetition and organizational performance outcomes: A meta-analysis of the main and moderator effects," Journal of Business Research, Elsevier, vol. 154(C).
    8. Sascha Kraus & Fabian Meier & Thomas Niemand & Ricarda B. Bouncken & Paavo Ritala, 2018. "In search for the ideal coopetition partner: an experimental study," Review of Managerial Science, Springer, vol. 12(4), pages 1025-1053, October.
    9. Siarhei Manzhynski & Frank Figge, 2020. "Coopetition for sustainability: Between organizational benefit and societal good," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 827-837, March.
    10. Raza-Ullah, Tatbeeq & Bengtsson, Maria & Gnyawali, Devi R., 2020. "The nature, consequences, and management of emotions in interfirm paradoxical relationships—A conceptual framework," Scandinavian Journal of Management, Elsevier, vol. 36(4).
    11. Dorn, Stefanie & Schweiger, Bastian & Albers, Sascha, 2016. "Levels, phases and themes of coopetition: A systematic literature review and research agenda," European Management Journal, Elsevier, vol. 34(5), pages 484-500.
    12. Fonseca Cristina & Meneses Raquel, 2020. "Motivations for Coopetition Strategies between Banks and Fintechs," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 282-293, July.
    13. Hubert J. Kiss & Alfonso Rosa-Garcia & Vita Zhukova, 2019. "Coopetition in group contest," CERS-IE WORKING PAPERS 1911, Institute of Economics, Centre for Economic and Regional Studies.
    14. Xue, Jinjie & Liu, Junqi & Geng, Zizhen & Yuan, Hongping & Chao, Lei, 2023. "Why and when do paradoxical management capabilities matter to paradoxical pressure? An empirical investigation of the role of coopetition," Technovation, Elsevier, vol. 120(C).
    15. Le Roy, Frédéric & Robert, Frank & Hamouti, Rizlane, 2022. "Vertical vs horizontal coopetition and the market performance of product innovation: An empirical study of the video game industry," Technovation, Elsevier, vol. 112(C).
    16. Chim-Miki, Adriana F. & Batista-Canino, Rosa M., 2017. "Tourism coopetition: An introduction to the subject and a research agenda," International Business Review, Elsevier, vol. 26(6), pages 1208-1217.
    17. Norat Roig‐Tierno & Sascha Kraus & Sonia Cruz, 2018. "The relation between coopetition and innovation/entrepreneurship," Review of Managerial Science, Springer, vol. 12(2), pages 379-383, March.
    18. Arakpogun, Emmanuel Ogiemwonyi & Elsahn, Ziad & Nyuur, Richard B. & Olan, Femi, 2020. "Threading the needle of the digital divide in Africa: The barriers and mitigations of infrastructure sharing," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    19. Vladimir Vanyushyn & Maria Bengtsson & Malin H. Näsholm & Håkan Boter, 2018. "International coopetition for innovation: Are the benefits worth the challenges?," Review of Managerial Science, Springer, vol. 12(2), pages 535-557, March.
    20. Martin Schnitzer & Maximilian Seidl & Philipp Schlemmer & Mike Peters, 2018. "Analyzing the Coopetition between Tourism and Leisure Suppliers—A Case Study of the Leisure Card Tirol," Sustainability, MDPI, vol. 10(5), pages 1-20, May.

    More about this item

    Keywords

    coopetition; collaboration; competition; value creation; small business;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:men:journl:v:7:y:2021:i:2:p:133-151. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://edirc.repec.org/data/femencz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.