Sleeping with competitors: Forms, antecedents and outcomes of coopetition of small and medium-sized craft beer breweries

Abstract

Purpose: The purpose of this paper is to highlight the specific types of coopetition between small and medium-sized craft breweries and related businesses, as well as its drivers and outcomes. Design/methodology/approach: Qualitative research was carried out using in-depth, semi-structured interviews with 18 different small and medium-sized enterprises (SMEs) combined with site visits and secondary data analysis. Findings: The results reveal that craft breweries are engaging in coopetition in several different ways. Mutual benefit, trust, commitment, and sympathy are the crucial drivers for coopetition; whereas innovation development, market reach and marketing, as well as firm growth represent the key shared outcomes of coopetition. Research limitations/implications: This study suffers from two main limitations, including the focus on coopetition of craft breweries operating in German-speaking countries only and the risk of subjectivity in analysis and interpretation due to the qualitative, explorative nature of the research. Originality/value: The findings reveal insights into the uniqueness of SMEs – specifically craft brewers – regarding coopetition, which is currently of strong cooperative nature. This study completes prior coopetition knowledge by revealing the importance of coopetition for small, micro and resource-constrained firms operating in dynamic and innovative but traditional (here craft) industries; presenting the cooperation-based type of coopetition as a good competition strategy under fierce competition from large, more established and global business rivals; and identifying sympathy as an important coopetition driver.