Better, faster, stronger, the impact of market oriented coopetition on product commercial performance

Abstract

This paper examines the specific impacts of market-oriented coopetition on product commercial performance. Indeed, most contributions have focused on technology-driven coopetition with cooperation on activities that are far from the market (e.g., production, R&D), whereas most coopetitive agreements involve market-oriented coopetition in which the cooperation arises in activities that are close to the market (e.g., marketing, distribution). We first present the specificities of market-oriented coopetition and distinguish horizontal and vertical market-oriented coopetition. We then focus on the performance implications of market-oriented coopetition. Building on social network exchange theory, we elaborate a theoretical framework detailing the mechanisms through which market-oriented coopetition affects product commercial performance. Using a database from the real estate brokerage industry, we validate our hypotheses that horizontal market-oriented coopetition enhances product commercial performance compared to competition, whereas vertical market-oriented coopetition does not. Furthermore, we highlight the existence of a learning effect for horizontal market-oriented coopetition. This research contributes to coopetition theory by defining market-oriented coopetition and studying its performance implications.