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Co-opetition between giants: Collaboration with competitors for technological innovation

  • Gnyawali, Devi R.
  • Park, Byung-Jin (Robert)
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    We investigate why and how co-opetition (simultaneous pursuit of collaboration and competition) between large firms occurs, evolves, and impacts the participating firms and the industry. We develop a multi-level conceptual framework by combining literature-based conceptual arguments and insights from an in-depth study of an exemplar case of co-opetition between Samsung Electronics and Sony Corporation. Our study demonstrates that co-opetition is challenging yet very helpful for firms to address major technological challenges, to create benefits for partnering firms, and to advance technological innovation. We also show that co-opetition between giants causes subsequent co-opetition among other firms and results in advanced technological development. Moreover, co-opetition capabilities of firms play an important role in enhancing common benefits as well as in gaining proportionately larger share of the benefits.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0048733311000187
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    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 40 (2011)
    Issue (Month): 5 (June)
    Pages: 650-663

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    Handle: RePEc:eee:respol:v:40:y:2011:i:5:p:650-663
    Contact details of provider: Web page: http://www.elsevier.com/locate/respol

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    1. Tsai, Kuen-Hung, 2009. "Collaborative networks and product innovation performance: Toward a contingency perspective," Research Policy, Elsevier, vol. 38(5), pages 765-778, June.
    2. Luo, Yadong, 2007. "A coopetition perspective of global competition," Journal of World Business, Elsevier, vol. 42(2), pages 129-144, June.
    3. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    4. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    5. von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
    6. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
    7. Teece, David J., 1992. "Competition, cooperation, and innovation : Organizational arrangements for regimes of rapid technological progress," Journal of Economic Behavior & Organization, Elsevier, vol. 18(1), pages 1-25, June.
    8. Teece, David J., 1996. "Firm organization, industrial structure, and technological innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 31(2), pages 193-224, November.
    9. Garud, Raghu, 1994. "Cooperative and competitive behaviors during the process of creative destruction," Research Policy, Elsevier, vol. 23(4), pages 385-394, July.
    10. Jorde, Thomas M & Teece, David J, 1990. "Innovation and Cooperation: Implications for Competition and Antitrust," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 75-96, Summer.
    11. Seung Ho Park & Michael V. Russo, 1996. "When Competition Eclipses Cooperation: An Event History Analysis of Joint Venture Failure," Management Science, INFORMS, vol. 42(6), pages 875-890, June.
    12. Rachelle C. Sampson, 2004. "The Cost of Misaligned Governance in R&D Alliances," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(2), pages 484-526, October.
    13. Dodgson, Mark & Mathews, John & Kastelle, Tim & Hu, Mei-Chih, 2008. "The evolving nature of Taiwan's national innovation system: The case of biotechnology innovation networks," Research Policy, Elsevier, vol. 37(3), pages 430-445, April.
    14. Utterback, James M. & Suarez, Fernando F., 1993. "Innovation, competition, and industry structure," Research Policy, Elsevier, vol. 22(1), pages 1-21, February.
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