With a little help from my friends: the interaction between coopetition, an entrepreneurial orientation and firm performance

Purpose

Underpinned by a stakeholder-oriented resource-based theoretical lens, this inter-disciplinary study investigates the association between an entrepreneurial orientation and firm performance under different degrees of coopetition (cooperation among rival firms).

Design/methodology/approach

Alongside undertaking 20 semi-structured interviews, survey responses were obtained from 302 smaller-sized producers in the American wine industry. The elements of the conceptual model were evaluated via hierarchical regression. Moreover, all major robustness checks were assessed.

Findings

Positive and significant relationships respectively existed between an entrepreneurial orientation and coopetition with firm performance. However, a somewhat counter-intuitive finding involved the interaction between these two constructs negatively and significantly influencing firm performance.

Originality/value

Even though employing an entrepreneurial orientation has been long-since linked to facilitating improved firm performance, under-resourced owner-managers of certain smaller-sized enterprises may struggle to implement these activities. In principle, cooperating with competitors can enhance resources/capabilities and lead to mutually beneficial outcomes. Nevertheless, unique insights suggest that the potential exists for coopetition-based networking activities to have detrimental outcomes with respect to entrepreneurially orientated strategies. Consequently, decision-makers are advised to consider the merits of collaborating with their industry rivals, but also be aware of the potential “dark sides” surrounding these behaviours. Furthermore, improved knowledge emerges regarding the stakeholder themes of resource-based theory.