"Co-opetition, Capabilities, and Environments: How Do They Work Together in Shaping Firm Performance?"

We examine the performance implications of co-opetition (simultaneous pursuit of competition and cooperation with key business stakeholders) and how co-opetition and co-competence (simultaneous possession of transactional and relational competencies) work together to enhance firm performance. We suggest that co-opetition would have a stronger positive effect on firm performance than competition without cooperation, or cooperation without competition. Moreover, we argue that co-competence provides the critical capability that nurtures value creation and value appropriation mechanisms of co-opetition, leading to a stronger effect of co-opetition on firm performance. We further propose that the performance-enhancing joint effects of co-opetition and co-competence would be stronger for firms that face higher market dynamism or greater institutional uncertainty. Our analysis of 321 emerging market firms supports these key arguments and related hypotheses. This paper advances research on co-opetition by elucidating the key conditions that help realize greater benefits from co-opetition and examining the interplay of co-opetition, capabilities, and environments in shaping firm performance.