Winning Strategies for the 21st Century

Edited by Saïd Yami, Sandro Castaldo and Giovanni Battista Dagnino

As an original strategic management perspective, coopetition has hitherto been underexploited in analysing contemporary firm strategies and behaviours and, more generally, managerial practices and processes. This innovative book provides both theoretical insights and empirical evidence on coopetition.

Chapter 10: Strategic Management of Coopetitive Relationships in CoPS-Related Industries

Thomas Herzog

Subjects: business and management, strategic management


10. Strategic management of coopetitive relationships in CoPSrelated industries Thomas Herzog INTRODUCTION So how is it that two fierce competitors can work together in developing a family of engines? – That’s the question I’m asked most often indeed. E. Schoenholz, Vice President Marketing, Engine Alliance The increasingly complicated structures and rules of a near globalised economy today confront companies with a situation of accelerated market dynamics, intensified competition and ever-increasing product demands. Given these challenges, interorganisational arrangements have become the centre of interest. At present, they represent the make-up of economic reality and the inherent subject of strategic decisions, and manifest themselves through alliances, networks, clusters and joint ventures, and in many other ways. Not least because of their obvious popularity and presence in business practice, interfirm forms of organisation have received significant attention from management research, though the forms of interaction have mostly been characterised and analysed as purely cooperative constellations. It turns out, however, that even those arrangements made with quite cooperative intentions also always exhibit a more or less pronounced momentum of competition. This means that cooperation only rarely implies an absolute suppression of competition, but instead causes a shift in the relational structure between the two forms of interdependence. In this view, interorganisational relations are usually marked by a multifaceted and complicated tension between forces of competition and cooperation. For the economic success of a business and the respective management of interfirm relations as a genuinely strategic challenge in the sense of establishing ‘relational capability . . . as a...

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