Untangling the value-creation and value-appropriation elements of coopetition strategy: A longitudinal analysis on the firm and relational levels

Abstract

Collaboration among competing firms (i.e., coopetition) highlights the co-existence of value creation and appropriation due to the simultaneity of competition and collaboration in the relationship. As a consequence, there may be firm- and relationship-level differences in a coopetition strategy in terms of how the partners create and realize value. However, the research on this issue is still scarce, on both the theoretical and the empirical levels. In order to narrow this gap, this study develops a conceptual framework of value creation and appropriation in coopetition, and analyzes this in light of an exploratory longitudinal case study of the relationships and interactions of four Finnish manufacturing firms. The results show that relational- and firm-level coopetition strategies differ notably in terms of value-creation and -appropriation objectives, and that they evolve over time. There are also evident differences in firm-specific strategies, illustrating the multifaceted nature of the managerial challenges inherent in coopetitive networks.