IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v112y2022ics0166497221001929.html
   My bibliography  Save this article

Vertical vs horizontal coopetition and the market performance of product innovation: An empirical study of the video game industry

Author

Listed:
  • Le Roy, Frédéric
  • Robert, Frank
  • Hamouti, Rizlane

Abstract

The aim of this research is to study the impact of coopetition on the market performance of product innovation. Previous research suggests, on the one hand, that coopetition is a powerful strategy for innovation but, on the other hand, that coopetition creates opportunism risk. Therefore, the impact of coopetition on innovation depends on external and internal conditions. This impact also differs according to the radicalness of the focal innovation. Past studies have identified many different factors that influence the impact of coopetition on innovation. However, they have not taken into account the different types of coopetition. To fill this gap, here, 1) we introduce a key distinction between the two main types of coopetition, i.e., vertical vs horizontal coopetition and 2) we distinguish between the impacts of these two types of coopetition on the market performance of two types of innovation, i.e., incremental vs radical innovation. We build a set of four hypotheses and test them on a sample of 763 new products in the video game industry. The results show that 1) horizontal coopetition has a positive impact on the market performance of radical and incremental innovation, 2) horizontal coopetition has a greater impact on the market performance of radical innovation 3) vertical coopetition has no impact on the market performance of innovation, and 4) the null impact of vertical coopetition is true for both radical and incremental innovation.

Suggested Citation

  • Le Roy, Frédéric & Robert, Frank & Hamouti, Rizlane, 2022. "Vertical vs horizontal coopetition and the market performance of product innovation: An empirical study of the video game industry," Technovation, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:techno:v:112:y:2022:i:c:s0166497221001929
    DOI: 10.1016/j.technovation.2021.102411
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497221001929
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.technovation.2021.102411?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. Sascha Kraus & Fabian Meier & Thomas Niemand & Ricarda B. Bouncken & Paavo Ritala, 2018. "In search for the ideal coopetition partner: an experimental study," Review of Managerial Science, Springer, vol. 12(4), pages 1025-1053, October.
    3. Wojciech Czakon & Thomas Niemand & Johanna Gast & Sascha Kraus & Frühstück Lisa, 2020. "Designing coopetition for radical innovation: An experimental study of managers' preferences for developing self-driving electric cars," Post-Print hal-02943184, HAL.
    4. Bouncken, Ricarda B. & Fredrich, Viktor, 2016. "Learning in coopetition: Alliance orientation, network size, and firm types," Journal of Business Research, Elsevier, vol. 69(5), pages 1753-1758.
    5. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
    6. Ricarda Bouncken & Johanna Gast & Sascha Kraus & Marcel Bogers, 2015. "Coopetition: a systematic review, synthesis, and future research directions," Post-Print hal-02018068, HAL.
    7. Ricarda Bouncken & Johanna Gast & Sascha Kraus & Marcel Bogers, 2015. "Coopetition: a systematic review, synthesis, and future research directions," Post-Print hal-02945341, HAL.
    8. Fréderic Le Roy & Anne-Sophie Fernandez, 2015. "Managing Coopetitive Tensions at the Working-group Level: The Rise of the Coopetitive Project Team," Post-Print hal-02011138, HAL.
    9. Frédéric Le Roy & Marc Robert & Frank Lasch, 2016. "Choosing the Best Partner for Product Innovation," International Studies of Management & Organization, Taylor & Francis Journals, vol. 46(2-3), pages 136-158, April.
    10. Czakon, Wojciech & Niemand, Thomas & Gast, Johanna & Kraus, Sascha & Frühstück, Lisa, 2020. "Designing coopetition for radical innovation: An experimental study of managers' preferences for developing self-driving electric cars," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    11. Colette Depeyre & Hervé Dumez, 2010. "The role of architectural players in coopetition: the case of the US defense industry," Post-Print hal-00539561, HAL.
    12. Frédéric Le Roy & Marc Robert & Frank Lasch, 2016. "Choosing the Best Partner for Product Innovation," Post-Print hal-02012535, HAL.
    13. Tomlinson, Philip R., 2010. "Co-operative ties and innovation: Some new evidence for UK manufacturing," Research Policy, Elsevier, vol. 39(6), pages 762-775, July.
    14. Bruce E. Hansen, 2001. "The New Econometrics of Structural Change: Dating Breaks in U.S. Labour Productivity," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 117-128, Fall.
    15. Anne Sophie Fernandez & Frédéric Le Roy & Paul Chiambaretto, 2018. "Implementing the right project structure to achieve coopetitive innovation projects," Post-Print hal-02051335, HAL.
    16. repec:dau:papers:123456789/5571 is not listed on IDEAS
    17. Belderbos, Rene & Carree, Martin & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2004. "Heterogeneity in R&D cooperation strategies," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1237-1263, November.
    18. Paul Chiambaretto & Călin Gurău & Frédéric Le Roy, 2016. "Coopetitive branding: Definition, typology, benefits and risks," Post-Print hal-02010660, HAL.
    19. Ritala, Paavo & Tidström, Annika, 2014. "Untangling the value-creation and value-appropriation elements of coopetition strategy: A longitudinal analysis on the firm and relational levels," Scandinavian Journal of Management, Elsevier, vol. 30(4), pages 498-515.
    20. Anne-Sophie Fernandez & Fréderic Le Roy & Devi Gnyawali, 2014. "Sources and management of tension in co-opetition case evidence from telecommunications satellites manufacturing in Europe," Post-Print hal-02042458, HAL.
    21. Patrycja Klimas & Wojciech Czakon, 2018. "Organizational innovativeness and coopetition: a study of video game developers," Review of Managerial Science, Springer, vol. 12(2), pages 469-497, March.
    22. Fredrich, Viktor & Bouncken, Ricarda B. & Kraus, Sascha, 2019. "The race is on: Configurations of absorptive capacity, interdependence and slack resources for interorganizational learning in coopetition alliances," Journal of Business Research, Elsevier, vol. 101(C), pages 862-868.
    23. Marc Robert & Paul Chiambaretto & Benjamin Mira & Frédéric Le Roy, 2018. "Better, faster, stronger, the impact of market oriented coopetition on product commercial performance," Post-Print hal-02091702, HAL.
    24. Gnyawali, Devi R. & Park, Byung-Jin (Robert), 2011. "Co-opetition between giants: Collaboration with competitors for technological innovation," Research Policy, Elsevier, vol. 40(5), pages 650-663, June.
    25. Miotti, Luis & Sachwald, Frederique, 2003. "Co-operative R&D: why and with whom?: An integrated framework of analysis," Research Policy, Elsevier, vol. 32(8), pages 1481-1499, September.
    26. Seo, Hangyeol & Chung, Yanghon & Yoon, Hyungseok (David), 2017. "R&D cooperation and unintended innovation performance: Role of appropriability regimes and sectoral characteristics," Technovation, Elsevier, vol. 66, pages 28-42.
    27. Bouncken, Ricarda B. & Kraus, Sascha, 2013. "Innovation in knowledge-intensive industries: The double-edged sword of coopetition," Journal of Business Research, Elsevier, vol. 66(10), pages 2060-2070.
    28. Wojciech Czakon & Devi Gnyawali & Frédéric Le Roy & Manish K. Srivastava, 2020. "Coopetition Strategies: Critical Issues and Research Directions," Post-Print hal-02517434, HAL.
    29. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    30. Ricarda B. Bouncken & Viktor Fredrich, 2012. "Coopetition: Performance Implications And Management Antecedents," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1-28.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sea Matilda Bez & Frédéric Le Roy, 2022. "Open Innovation and Coopetition," Post-Print hal-03920452, HAL.
    2. Rouyre, Audrey & Fernandez, Anne-Sophie & Bruyaka, Olga, 2024. "Big problems require large collective actions: Managing multilateral coopetition in strategic innovation networks," Technovation, Elsevier, vol. 132(C).
    3. Wioletta Mierzejewska & Maria Aluchna & Emilia Tomczyk, 2023. "Do coopetition and cohesion of business groups stimulate their innovation performance?," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(2), pages 153-168, June.
    4. Czernek-Marszałek Katarzyna & Klimas Patrycja & Wójcik Dagmara, 2023. "Playing with social relationships. Their role among actors in the video game industry," International Journal of Contemporary Management, Sciendo, vol. 59(4), pages 34-57, December.
    5. Xie, Qiuhao & Gao, Ying & Xia, Nini & Zhang, Shuibo & Tao, Guowu, 2023. "Coopetition and organizational performance outcomes: A meta-analysis of the main and moderator effects," Journal of Business Research, Elsevier, vol. 154(C).
    6. Telg, Nina & Lokshin, Boris & Letterie, Wilko, 2023. "How formal and informal intellectual property protection matters for firms' decision to engage in coopetition: The role of environmental dynamism and competition intensity," Technovation, Elsevier, vol. 124(C).
    7. Lafuente, Esteban & Vaillant, Yancy & Rabetino, Rodrigo, 2023. "Digital disruption of optimal co-innovation configurations," Technovation, Elsevier, vol. 125(C).
    8. Zhou, Wenwen & shi, Yu & Zhao, Tian & Cao, Ximeng & Li, Jialin, 2024. "Government regulation, horizontal coopetition, and low-carbon technology innovation: A tripartite evolutionary game analysis of government and homogeneous energy enterprises," Energy Policy, Elsevier, vol. 184(C).
    9. Songsong Cheng & Qunpeng Fan & Yang Song, 2023. "Performance Gap and Innovation Ambidexterity: A Moderated Mediation Model," Sustainability, MDPI, vol. 15(5), pages 1-22, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Czakon, Wojciech & Niemand, Thomas & Gast, Johanna & Kraus, Sascha & Frühstück, Lisa, 2020. "Designing coopetition for radical innovation: An experimental study of managers' preferences for developing self-driving electric cars," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    2. Bouncken, Ricarda B. & Fredrich, Viktor & Kraus, Sascha & Ritala, Paavo, 2020. "Innovation alliances: Balancing value creation dynamics, competitive intensity and market overlap," Journal of Business Research, Elsevier, vol. 112(C), pages 240-247.
    3. Corbo, Leonardo & Kraus, Sascha & Vlačić, Božidar & Dabić, Marina & Caputo, Andrea & Pellegrini, Massimiliano M., 2023. "Coopetition and innovation: A review and research agenda," Technovation, Elsevier, vol. 122(C).
    4. Patrycja Klimas & Ali Ashraf Ahmadian & Morteza Soltani & Meisam Shahbazi & Ali Hamidizadeh, 2023. "Coopetition, Where Do You Come From? Identification, Categorization, and Configuration of Theoretical Roots of Coopetition," SAGE Open, , vol. 13(1), pages 21582440221, January.
    5. Xie, Qiuhao & Gao, Ying & Xia, Nini & Zhang, Shuibo & Tao, Guowu, 2023. "Coopetition and organizational performance outcomes: A meta-analysis of the main and moderator effects," Journal of Business Research, Elsevier, vol. 154(C).
    6. Fernandez, Anne-Sophie & Chiambaretto, Paul & Chauvet, Mathieu & Engsig, Juliane, 2021. "Why do MNEs both make and coopete for innovation?," Technovation, Elsevier, vol. 106(C).
    7. Vladimir Vanyushyn & Maria Bengtsson & Malin H. Näsholm & Håkan Boter, 2018. "International coopetition for innovation: Are the benefits worth the challenges?," Review of Managerial Science, Springer, vol. 12(2), pages 535-557, March.
    8. Frédéric Le Roy & Sea Matilda Bez & Johanna Gast, 2021. "Unpacking the management of Oligo-coopetition strategies in the absence of a moderating third party," Post-Print hal-03349671, HAL.
    9. Chiambaretto, Paul & Massé, David & Mirc, Nicola, 2019. "“All for One and One for All?” - Knowledge broker roles in managing tensions of internal coopetition: The Ubisoft case," Research Policy, Elsevier, vol. 48(3), pages 584-600.
    10. Mierzejewska Wioletta, 2023. "Does coopetition pay off? Benefits of intra-organizational coopetition within business groups," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(2), pages 150-167, June.
    11. Bagherzadeh, Mehdi & Ghaderi, Mohammad & Fernandez, Anne-Sophie, 2022. "Coopetition for innovation - the more, the better? An empirical study based on preference disaggregation analysis," European Journal of Operational Research, Elsevier, vol. 297(2), pages 695-708.
    12. Ming-Chao Wang & Ja-Shen Chen, 2022. "Driving coopetition strategy to service innovation: the moderating role of coopetition recognition," Review of Managerial Science, Springer, vol. 16(5), pages 1471-1501, July.
    13. Rouyre, Audrey & Fernandez, Anne-Sophie & Bruyaka, Olga, 2024. "Big problems require large collective actions: Managing multilateral coopetition in strategic innovation networks," Technovation, Elsevier, vol. 132(C).
    14. Farazi, Mohammad Saleh & Chiambaretto, Paul & Fernandez, Anne-Sophie & Gopalakrishnan, Shanthi, 2024. "Unbundling the impact of current and future competition on cooperation in coopetition projects for innovation," Research Policy, Elsevier, vol. 53(6).
    15. Crick, James M. & Crick, Dave, 2021. "The dark-side of coopetition: Influences on the paradoxical forces of cooperativeness and competitiveness across product-market strategies," Journal of Business Research, Elsevier, vol. 122(C), pages 226-240.
    16. Youngwook Ko & Yanghon Chung & Hangyeol Seo, 2020. "Coopetition for Sustainable Competitiveness: R&D Collaboration in Perspective of Productivity," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    17. Anne-Sophie Fernandez & Frédéric Le Roy, 2016. "Why firms implement Coopetitive-Project Teams?," Post-Print hal-02101071, HAL.
    18. Siarhei Manzhynski & Frank Figge, 2020. "Coopetition for sustainability: Between organizational benefit and societal good," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 827-837, March.
    19. Bacon, Emily & Williams, Michael D. & Davies, Gareth, 2020. "Coopetition in innovation ecosystems: A comparative analysis of knowledge transfer configurations," Journal of Business Research, Elsevier, vol. 115(C), pages 307-316.
    20. Joanna Cygler & Włodzimierz Sroka & Marina Solesvik & Katarzyna Dębkowska, 2018. "Benefits and Drawbacks of Coopetition: The Roles of Scope and Durability in Coopetitive Relationships," Sustainability, MDPI, vol. 10(8), pages 1-24, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:techno:v:112:y:2022:i:c:s0166497221001929. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/01664972 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.