Frenemies in Business: A Case Study on the Phenomenon of Coopetition

Title: Frenemies in Business: A Case Study on the Phenomenon of Coopetition Research Question: What are drivers and challenges behind coopetition, as well as possible outcomes of the relationship? Keywords: Coopetition, Cooperation, Competition, Coopetitive Relationship, Competing Companies, Coopetitors, Coopetition Process, Drivers, Challenges, Possible Positive Outcomes, Possible Negative Outcomes Purpose: The purpose of this paper is to explore the drivers behind coopetition and to identify challenges that organizations have to overcome when cooperating with their competitors. Further, this paper will explore the possible outcomes of a coopetitive relationship. Thereafter, once having identified key conditions, necessary capabilities and other factors influencing the success of coopetition, a conceptual framework with managerial recommendations is provided. Methodology: A qualitative method was chosen for this study as it is rather based upon words and an overall understanding than numerical assessments. Therefore, multiple interviews were conducted to collect the empirical data in order to and gain new and deep insights in the coopetition process. Further, a single case study was utilized to address the research question. This case study was chosen according to different criteria that needed to be met beforehand in order to represent a suitable example. Findings: Our findings provide some new insights concerning drivers, challenges and possible outcomes of coopetition that have not yet been addressed in previous literature on the phenomenon. Among the novel findings regarding coopetition drivers are for instance having a common goal, previous experience that led to establish trust among the coopetitors or certain market characteristics and the culture. Moreover, we found determined employees and governance structures and procedures as challenges in coopetition. Besides what was mentioned in coopetition literature, employee branding was found to be a possible positive outcome, while governance and decision-making processes were found to be a possible negative outcome of a coopetitive relationship between competing companies. Conclusion: The study has shown that coopetition is a valuable business strategy for firms and can result in a win-win scenario for all actors involved. Once being successful, coopetition can be iterated. Further, the study has minimized a seemingly research gap in coopetition literature by identifying more drivers, challenges and possible outcomes by covering the coopetition process holistically. The research has also provided managerial implications for firms and thus, managers, who consider coopetition as an advantageous business strategy for the future