IDEAS home Printed from https://ideas.repec.org/a/taf/tprsxx/v61y2023i3p910-938.html
   My bibliography  Save this article

Coopetition strategy in an imbalanced competitive environment

Author

Listed:
  • Ruixiao Dong
  • Xu Guan
  • Baoshan Liu
  • Sihua Chen

Abstract

This study examines a firm's strategic choices of self-development or cooperation with (wholesaling from) its stronger rival. Both choices can improve the efficiency and competitive strength. We develop a benchmark of a full competition model, coopetition strategy, self-development strategy and hybrid strategy to investigate the effect of coopetition and self-development on firms who sell substitutive products in the end market. We show that both coopetition and self-development can benefit the high-cost firm. While the low-cost firm prefers the coopetition strategy. And in the hybrid strategy, the high-cost firm just utilises the self-development ability as a threat to enjoy a lower wholesale price. Interestingly, our research indicates that the mixed cooperation and competition relationship varies low-cost firm's attitudes towards product differentiation. On the one hand, the low-cost firm wants to produce homogeneous products to compete with rivals. On the other hand, he also wants to provide heterogenous products to alleviate competition in the coopetition strategy. The result provides company managers with a certain meaning in the complicated cooperative and competitive market environment.

Suggested Citation

  • Ruixiao Dong & Xu Guan & Baoshan Liu & Sihua Chen, 2023. "Coopetition strategy in an imbalanced competitive environment," International Journal of Production Research, Taylor & Francis Journals, vol. 61(3), pages 910-938, February.
    • Handle: RePEc:taf:tprsxx:v:61:y:2023:i:3:p:910-938
    DOI: 10.1080/00207543.2021.2020928
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00207543.2021.2020928
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00207543.2021.2020928?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.

    Citations

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


    Cited by:

    1. Katsaliaki, Korina & Kumar, Sameer & Loulos, Vasilis, 2024. "Supply chain coopetition: A review of structures, mechanisms and dynamics," International Journal of Production Economics, Elsevier, vol. 267(C).
    2. Zhihua Han & Yinyuan Si & Xingye Wang & Shuai Yang, 2024. "Battery Mode Selection and Carbon Emission Decisions of Competitive Electric Vehicle Manufacturers," Mathematics, MDPI, vol. 12(16), pages 1-29, August.

    More about this item

    Statistics

    Access and download statistics

    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:taf:tprsxx:v:61:y:2023:i:3:p:910-938. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TPRS20 .

    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.