Cooperation-Competition (Coopetition)

by

Devi Gnyawali, S M Abidul Islam

• LAST MODIFIED: 23 May 2024
• DOI: 10.1093/obo/9780199846740-0221

Introduction

Coopetition involves the simultaneous pursuit of cooperation and competition to create value. This unique strategy blends opposing principles of competition and cooperation and presents intriguing opportunities and challenges. Various factors drive organizations to pursue coopetition, and success in coopetition is enhanced when organizations possess specialized capabilities to navigate the complexities involved. Recognized as a modern strategic approach, coopetition has gained significant attention in academic research and management practice, making it a compelling area of study in contemporary business environments.

Textbooks

No fully developed textbook is available on this topic, as it is a relatively new research topic. However, some textbooks on strategic management initially provided a basic overview of coopetition, with a few case examples and a focus on game theory–related arguments. As coopetition research progressed, several aspects of it have been covered by more textbooks, and some of those incorporate multinational contexts. Brandenburger and Nalebuff 1996 is the initial book that illustrated coopetition as a new strategy. Luo 2004 illustrates many complicated dynamics of coopetition between global firms. Yami, et al. 2010 provided more comprehensive coverage of theoretical insights and empirical evidence on coopetition.

• Brandenburger, A. M., and B. J. Nalebuff. Co-opetition. New York: Currency Doubleday, 1996.

  This is the first book that used the word “co-opetition” and argues that managers need to view competition and cooperation differently. This revolutionary book describes coopetition from the game theoretic angle and suggests that the pursuit of both competition and cooperation helps combine the advantages of both.

• Luo, Y. Coopetition in International Business. Copenhagen: Copenhagen Business School Press, Denmark, 2004.

  This book provides a discussion of coopetition from a global perspective involving multinational companies, foreign governments, and other international stakeholders. It argues that cooperating is important to create a bigger pie and competing to divide up the pie.

• Yami, S., S. Castaldo, B. Dagnino, and F. Le Roy, eds. Coopetition: Winning Strategies for the 21st Century. Cheltenham, UK: Edward Elgar, 2010.

  An edited book that includes multiple chapters on the topic by various authors covering the topic from different angles.