Vertical Coopetition and the Sales Growth of Young and Small Firms

Abstract

Vertical coopetition describes a situation where a firm has a vertical exchange relationship with a direct competitor. Drawing on resource-based perspectives and resource dependence theory, we examine specific characteristics of vertical coopetition that affect the sales growth of young and small firms. We propose that the size of the competitor and mutual dependence as well as overdependence among the cooperating rivals affect the growth potential of young and small firms differently. Our research makes a contribution to the literature by disentangling some of the benefits and threats related to vertical coopetition for young and small firms.