Convergence amidst divergence: Research on the diffusion of innovative products under non-contractual coopetition

When multiple innovative products within the same category diffuse simultaneously, they often exhibit a relationship of Non-Contractual Coopetition (NCC). That is, in the absence of formal contractual constraints, they achieve cooperative effects through competition—simultaneously competing for market share while collaboratively cultivating the overall market ecosystem, resulting in a phenomenon of “convergence amidst divergence". Traditional theoretical models struggle to capture the dynamic mechanisms of such emerging relationships effectively. To investigate the impact of NCC on the diffusion of innovative products and enterprises’ strategic choices, this paper proposes a conceptual framework for NCC, develops a corresponding diffusion model, and conducts empirical tests based on multi-source datasets. The findings indicate that: (1) The NCC relationship can generate a “free-riding" effect for both disadvantaged and advantaged enterprises, thereby increasing their market share and profits; (2) Enterprises with stronger relative competitive advantages are more likely to benefit from NCC. Advantaged enterprises should more proactively establish and leverage NCC relationships to expand their gains, while disadvantaged enterprises need to flexibly adjust resource inputs (e.g., strategically reducing advertising expenditure) to avoid direct impacts and protect their market share; (3) The NCC effect is uncertain: although profit-maximizing enterprises may achieve mutual benefits under NCC, an increase in NCC intensity may hinder the rapid diffusion of innovative products.