UNPACKING THE CONTEXT OF COOPETITION: THE MODERATING ROLE OF FIRM AND INDUSTRY LEVEL CHARACTERISTICS IN THE COOPETITION-FIRM PERFORMANCE RELATIONSHIP

Abstract

Coopetition, defined as the collaboration between firms operating in the same industry, is often pursued to improve performance, yet empirical findings remain mixed. This study examines how firm size, financial constraints, innovation intensity, and market concentration moderate the relationship between coopetition and firm performance one year after a coopetitive joint venture. Using the Resource-Based View as the theoretical lens, this study analyses 825 firm-year observations of publicly listed companies that engaged in within-industry joint ventures – ranging from 100 percent to minority stake joint ventures – between 2010 and 2016. Hierarchical regression results reveal that, on average, coopetitive joint ventures have a negative effect on Return on Assets (ROA) one year after a coopetitive joint venture. Contrary to theoretical expectations, none of the proposed firm- or industry-level moderators significantly influenced this relationship. These findings contribute to coopetition theory by demonstrating that its short-term performance outcomes are more contingent and complex than often assumed. Performance may be shaped by deeper relational or governance mechanisms not captured by the hypothesised firm- or industry characteristics. For managers, this study cautions that coopetition is not a guaranteed path to increased firm performance; instead, outcomes may hinge on how partnerships are aligned, structured, and managed in practice.