Coopetition in business Ecosystems: The key role of absorptive capacity and supply chain agility

Abstract

This study aims to shed light on the mechanisms that enable firms to manage the contradictory logics of coopetition (i.e. simultaneous cooperation and competition) in business ecosystems to achieve superior performance. In particular, we examine the relationship between coopetition and performance through the indirect effects of absorptive capacity and supply chain agility. Primary survey data collected from 214 firms hosted in tech-cities is used to test four hypotheses through regression analysis with bootstrapping. Results do not support a direct, positive relationship between coopetition and firm performance. Rather, firms in business ecosystems gain crucial knowledge through coopetition that then positively influences absorptive capacity, which relates to improved supply chain agility and firm performance. To the best of our knowledge, this is the first paper to provide empirical evidence on the impact of coopetition on firm performance through indirect effects. A new validated scale for measuring coopetition is also provided.