Edition: 1, 2004
This book explains coopetition - a new perspective of international business that addresses the simultaneous cooperation and competition between MNE units and their global stakeholders such as global competitors, foreign governments, corporate members, alliance partners, and foreign suppliers. Coopetition looks for win-win scenarios in which a business strives to get a bigger piece of the pie not by taking share from a contender, but by making the pie bigger.
Coopetition is attributed to increasing interdependence between global players and heightened needs for collective actions, risk sharing, strategic flexibility, and prompt response to market demands. MNEs and their business stakeholders mutually depend on each other and yet they have both cooperative and competitive aims underlying their interdependence. Cooperative aims can nourish joint payoff creation through exploiting complementary resources cooperatively. Meanwhile, competitive aims can breed conflicts that may emerge when either party emphasizes its own gains from specific projects in which respective needs are not compatible. Competitive aims always exist because of the underlying incentive for any party to share a higher percentage of returns generated from cooperation. The simultaneity of cooperation and competition arises because MNE units have both private goals and common goals as they deal with outside stakeholders such as rivals, regulators, partners, and suppliers as well as inside corporate members.
Thus, under the coopetition scheme, MNE units and their business stakeholders work together to collectively enhance performance by sharing complementary resources and committing to common task goals in some specific areas. Meanwhile, they compete by taking independent action in other areas to improve their own performance. The coopetition perspective portrays the relationship between an MNE and its international business stakeholders as a simultaneous, inclusive interdependence containing cooperation and competition as two separate yet interrelated continua. The interdependence entails competing and collaborating elements, with contending as well as collaborative aims in the course of competitive collaborations.
This book illustrates why and how MNE units simultaneously cooperate and compete with global rivals (Chapter 1), foreign governments (Chapter 2), alliance partners and foreign suppliers (Chapter 3), and corporate members (Chapter 4). In each of these chapters, I defined coopetition, explained why coopetition occurs, elucidated various aspects in which two players compete and cooperate, and discussed internal and external conditions under which cooperation or competition may increase or decrease. In addition, this book offered a typology that characterizes different MNEs or different situations for the same company. Firms with differing identities under each typology will find different strategies to respond to their unique needs or unique market parameters. Moreover, this book provided specific strategic tactics in response to varying coopetition situations for each type of MNEs. These strategic tactics, policies, and approaches are problem-solving solutions needed by global companies in pursuit of maximum possible returns from coopetition. Finally, this book provided case examples that illustrate simultaneous competition and cooperation with different global stakeholders.