Small firm coopetition – the missing links: coopetitive tension, balance and value

What is it about?

What is it about? In this paper, we explore the perceptions of small firms to coopete, so competitors who cooperate by sharing resources, or knowledge for mutual benefit. Specifically, we use case to gain insight on how small firms manage and resolve the inherent tension in such a relationship, achieve balance between these positions and ensure the value created through such a strategy is fairly appropriated. This paper provides a framework for small firms to proactively develop coopetitive relationships and suggest that by trialling smaller projects, they increase their awareness of how competitive and cooperative behaviour might influence the actions of their own and their counterpart. Why is it important? Small firms account for more than 95% of firms globally, provide the bulk of jobs in regional areas and have limited resources. Coopetition is a strategy that can help these firms access and share resources with potential competitors, providing benefits to both. If small firms are in more sustainable positions, regional communities as a whole experience the social and economic benefits. Our paper provides guidance to small firm owner/managers how to engage and manage coopetitive relationships.

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