Address the underlying issues |
Trust and commitment are key factors influencing the management of tensions in coopetition. It is important to work on these aspects to strengthen the relationship between the parties. It can be done through open communication, transparency, and meeting deadlines. Mutual trust reduces conflict and promotes cooperative behavior. |
Celuch et al. (2010Celuch, K., Bantham, J., & Kasouf, C. (2010). The role of trust in buyer-seller conflict management. Journal of Business Research, 64(10), 1082-1088. https://doi.org/10.1016/j.jbusres.2010.11.011 https://doi.org/10.1016/j.jbusres.2010.1...
); Ndubisi (2011Ndubisi, N. (2011). Conflict handling, trust and commitment in outsourcing relationship: A Chinese and Indian study. Industrial Marketing Management, 40(1), 109-117. https://doi.org/10.1016/j.indmarman.2010.09.015 https://doi.org/10.1016/j.indmarman.2010...
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Use different styles of management |
Different styles of managing tensions can be applied, such as compromise and collaboration. Compromise involves finding mutually agreeable solutions where both parties compromise. Collaboration, in turn, seeks to achieve optimal results that satisfy all parties involved. These styles can be chosen based on the situation and the specific needs of the coopetition. |
Fang et al. (2011Fang, S.-R., Chang, Y.-S., & Peng, Y.-C. (2011). The dark side of relationships: A tension-based view. Industrial Marketing Management, 40(5), 774-784. https://doi.org/10.1016/j.indmarman.2011.02.003 https://doi.org/10.1016/j.indmarman.2011...
); Osarenkhoe (2010Osarenkhoe, A. (2010). A coopetition strategy - A study of inter-firm dynamics between competition and cooperation. Business Strategy Series, 11(6), 343-362. https://doi.org/10.1108/17515631011093052 https://doi.org/10.1108/1751563101109305...
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Consider the similarities and differences between companies |
The similarity between companies generally favors closer cooperation and more efficient interactions. However, it is important to recognize that similarity can also lead to tensions, especially if companies compete for the same customers. Understanding cultural and procedural differences and seeking convergence points can help manage similarity-related tensions. |
Bengtsson et al. (2003Bengtsson, M., Hinttu, S., & Kock, S. (2003). Relationships of cooperation and competition between competitors. Proceedings of the Annual IMP Conference, Lugano, Switzerland.); Morris et al. (2007Morris, M., Kocak, A., & Özer, A. (2007). Coopetition as a small business strategy: Implications for performance. Journal of Small Business Strategy, 18(1), 35-55. https://libjournals.mtsu.edu/index.php/jsbs/article/view/77 https://libjournals.mtsu.edu/index.php/j...
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Valuing personal relationships |
The existence of personal relationships between the actors involved in coopetition can reduce the risk of opportunistic behavior and strengthen mutual trust. Investing in developing personal relationships can be beneficial for managing tensions in coopetition. |
Uzzi (1997Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42(1), 35-67. https://doi.org/10.2307/2393808 https://doi.org/10.2307/2393808...
); Kemp and Ghauri (1999Kemp, R., & Ghauri, P. (1999). Cooperation and conflict in international joint venture relationship. Proceedings of the 15th Annual IMP Conference, Dublin, Ireland.); Zaheer et al. (1998Zaheer, A., McEvily, B., & Perrone, V. (1998). Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science, 9(2), 141-159. https://doi.org/10.1287/orsc.9.2.141 https://doi.org/10.1287/orsc.9.2.141...
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Build mutual trust |
Trust is an essential element for successful cooperation. It can be developed through sharing resources, communicating effectively, and fulfilling commitments. Mutual trust reduces conflict and promotes cooperative behavior. |
Parkhe (1991Parkhe, A. (1991). Interfirm diversity, organizational learning, and longevity in global strategic alliances. Journal of International Business Studies, 22, 579-601. https://doi.org/10.1057/palgrave.jibs.8490315 https://doi.org/10.1057/palgrave.jibs.84...
); Zaheer et al. (1998Zaheer, A., McEvily, B., & Perrone, V. (1998). Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science, 9(2), 141-159. https://doi.org/10.1287/orsc.9.2.141 https://doi.org/10.1287/orsc.9.2.141...
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Cultivate commitment |
Commitment is essential for strengthening coopetition. The parties must realize that they are responsible for the goals and activities that contribute to the results of the relationship. A high level of commitment from both parties contributes to the viability of the cooperation over time. |
Morris et al. (2007Morris, M., Kocak, A., & Özer, A. (2007). Coopetition as a small business strategy: Implications for performance. Journal of Small Business Strategy, 18(1), 35-55. https://libjournals.mtsu.edu/index.php/jsbs/article/view/77 https://libjournals.mtsu.edu/index.php/j...
); Ndubisi (2011Ndubisi, N. (2011). Conflict handling, trust and commitment in outsourcing relationship: A Chinese and Indian study. Industrial Marketing Management, 40(1), 109-117. https://doi.org/10.1016/j.indmarman.2010.09.015 https://doi.org/10.1016/j.indmarman.2010...
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Consider institutional factors |
Institutional factors, such as social norms and the regulatory context, can also influence tensions in coopetition. Understanding and respecting these factors can facilitate interaction between competing companies in a cooperative relationship. |
Mele (2011Mele, C. (2011). Conflicts and value co-creation in project networks. Industrial Marketing Management, 40(8), 1377-1385. https://doi.org/10.1016/j.indmarman.2011.06.033 https://doi.org/10.1016/j.indmarman.2011...
); Oliver (1991Oliver, C. (1991). Strategic responses to institutional processes. Academy of Management Review, 16(1), 145-179. https://doi.org/10.2307/258610 https://doi.org/10.2307/258610...
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