Managing coopetition in multi-unit organizations: a management-control perspective

This study investigates the management of internal coopetitive tensions among business units (BUs) in multiunit organizations from a management-control perspective. Existing research on internal coopetitive management has acknowledged the role of principles and mechanisms in managing these tensions but has paid less attention to the role of controls. Drawing from the literature on management control, we follow the package perspective, which suggests combining technical and social controls to manage tensions in organizations. The question becomes how a package of technical and social controls can manage coopetitive tensions. This longitudinal case study of a leading French multiunit company in the banking industry therefore (1) provides evidence of coopetitive tensions between two BUs; (2) highlights how a package of controls was used to manage these coopetitive tensions; (3) demonstrates how this package increased competition and generated competitive tensions between the BUs; and (4) describes how a new combination of controls was adapted to manage these additional tensions. These findings thus enrich the coopetition management literature by revealing (1) the essential role of controls in managing internal coopetitive relationships among BUs; (2) the package of controls for effectively managing internal coopetition; and (3) the dynamic interactions between the use of controls and tensions among BUs.