Modeling Coopetition Strategy and Its Risks at an Individual Partner Level

The very concept of coopetition is founded on the complementarity-based nature of this strategy. However, coopetition research has devoted relatively little attention to complementarity issues and their impact on coopetition results. By bridging the coopetition and economics of complementarities research fields, we develop a model representing a classical optimization problem in complementarities as applied to coopetition, in order to evaluate potential risks deriving at operational level from implementing a coopetition strategy. The model we develop is a situated one and is based on empirical data from a longitudinal case study of coopetition in the mineral water and soft drinks industry. The results highlight a potential risk of coopetition strategies, namely thresholds effects, as well as the associated risks a wrong understanding of complementarities in a coopetition setting may entail.