Value creation, appropriation and destruction in coopetitive relationships among micro-firms

Although coopetition literature developed a lot for years, several dimensions remain under-studied. This paper addresses three of these gaps. First, the dilemma between value creation and value appropriation for coopetitors; second, the lack of empirical studies regarding the mechanisms of coopetition among micro-firms in traditional activities; third, the recent interest for geographic levels in coopetition, with a focus on the local level. Our research question is therefore: What are the mechanisms of value creation and value appropriation in local-level coopetition among micro-firms in traditional industries? We use an in-depth case study about a small French wine appellation, which is characterised by a modestly sized cultivated area occupied by small micro-firms, the existence of a cooperative cellar, but also a weak brand image. Our research contributes to the ongoing coopetition discussion in three ways: we enrich the literature on coopetition by documenting value creation and appropriation mechanisms, identifying nine different mechanisms that are collective or individual; we provide some empirical insights to coopetition literature regarding micro-firms and local-level coopetition; we produce some managerial recommendations.