Coopetition as a Strategic Enabler of Innovation in Transition Economies

Transition economies have distinctive opportunities and challenges compared to other economies. Innovation is among the major contributors for development and welfare in countries with transition economies. Limited sources, environmental forces, rapid changes in technology, cost and complexity of research drive organizations to form strategic alliances with their competitors and prefer innovation through coopetition. Transition economies with their unique characteristics compared to other economies and potential of achievable benefits from innovation require particular attention. This study identifies, describes and discusses the promising areas of research methods and perspectives about innovation through coopetition in transition economies. A comprehensive critical evaluation of the underlying dynamics of innovation through coopetition and innovation in transition economies, aided by bibliometric mapping and analysis showed the promising enabling potential of coopetition for innovation in challenging conditions of transition economies. The viable and beneficial coopetition ideas and approaches are identified, represented and discussed to enable effective innovation in transition economies. The main features and challenging aspects of these ideas and approaches are explained in details.

___

  • Aidis, R., Estrin, S. and Mickiewicz, T. (2008). Institutions and entrepreneurship development in Russia: A comparative perspective. Journal of Business Venturing, 23(6), 656-672.
  • Acemoglu, D., Aghion, P. and Zilibotti, F. (2006). Distance to frontier, selection, and economic growth. Journal of the European Economic Association, 4(1), 37-74.
  • Acs, Z. J. and Szerb, L. (2007). Entrepreneurship, economic growth and public policy. Small Business Economics, 28(2), 109-122.
  • Apanasovich, N., Heras, H. A. and Parrilli, M. D. (2016). The impact of business innovation modes on SME innovation performance in post-Soviet transition economies: The case of Belarus. Technovation, 57, 30-40.
  • Belderbos, R., Carree, M. and Lokshin, B. (2004). Cooperative R&D and firm performance. Research Policy, 33(10), 1477-1492.
  • Bengtsson, M. and Kock, S. (2014). Coopetition—Quo vadis? Past accomplishments and future challenges. Industrial Marketing Management, 43(2), 180-188.
  • Bengtsson, M. and Raza-Ullah, T. (2016). A systematic review of research on coopetition: Toward a multilevel understanding. Industrial Marketing Management, 57, 23-39.
  • Bengtsson, M., Raza-Ullah, T., & Vanyushyn, V. (2016). The coopetition paradox and tension: The moderating role of coopetition capability. Industrial Marketing Management, 53, 19-30.
  • Bouncken, R. B. and Fredrich, V. (2012). Coopetition: performance implications and management antecedents. International Journal of Innovation Management, 16(05), 1250028.
  • Bouncken, R. B. and Kraus, S. (2013). Innovation in knowledge-intensive industries: The double-edged sword of coopetition. Journal of Business Research, 66(10), 2060-2070.
  • Bouncken, R. B., Gast, J., Kraus, S. and Bogers, M. (2015). Coopetition: a systematic review, synthesis, and future research directions. Review of Managerial Science, 9(3), 577-601.
  • Bouncken, R. B., Fredrich, V., Ritala, P. and Kraus, S. (2018). Coopetition in new product development alliances: advantages and tensions for incremental and radical innovation. British Journal of Management, 29(3), 391-410.
  • Capello, R. and Lenzi, C. (2013). Territorial patterns of innovation: a taxonomy of innovative regions in Europe. The Annals of Regional Science, 51(1), 119-154.
  • Chen, Y. S. and Chen, B. Y. (2011). Utilizing patent analysis to explore the cooperative competition relationship of the two LED companies: Nichia and Osram. Technological Forecasting and Social Change, 78(2), 294-302.
  • Cheung, K. Y. and Ping, L. (2004). Spillover effects of FDI on innovation in China: Evidence from the provincial data. China Economic Review, 15(1), 25-44.
  • Cygler, J. and Sroka, W. (2016). The boundaries of coopetition: A case study of polish companies operating in the high-tech sector. In Economic Development and Entrepreneurship in Transition Economies (p.253-269). Springer, Cham.
  • Dolińska, M. (2015). Knowledge based development of innovative companies within the framework of innovation networks. Innovation, 17(3), 323-340.
  • Dussauge, P., Garrette, B., & Mitchell, W. (2000). Learning from competing partners: Outcomes and durations of scale and link alliances in Europe, North America and Asia. Strategic Management Journal, 21(2), 99-126.
  • EU, (2014). Final Report from the expert group on retail sector innovation. European Commission, Brussels. Retrieved on 02.05.2021 from https://op.europa.eu/en/publication-detail/-/publication/bcdb70b6-f733-4f1c-866b-94a8195aab12/language-en
  • Feige, E. L. (1994). The underground economy and the currency enigma. Public Finance= Finances Publiques, 49(Supplement), 119-136. Fischer, S. and Gelb, A. (1991). The process of socialist economic transformation. Journal of Economic Perspectives, 5(4), 91-105.
  • Galdeano‐Gómez, E., Céspedes‐Lorente, J. and Rodríguez‐Rodríguez, M. (2006). Productivity and environmental performance in marketing cooperatives: An analysis of the Spanish horticultural sector. Journal of Agricultural Economics, 57(3), 479-500.
  • Gast, J., Filser, M., Gundolf, K. and Kraus, S. (2015). Coopetition research: towards a better understanding of past trends and future directions. International Journal of Entrepreneurship and Small Business, 24(4), 492-521.
  • Gërguri‐Rashiti, S., Ramadani, V., Abazi‐Alili, H., Dana, L. P. and Ratten, V. (2017). ICT, innovation and firm performance: the transition economies context. Thunderbird International Business Review, 59(1), 93-102.
  • González-Pernía, J. L., Parrilli, M. D. and Peña-Legazkue, I. (2015). STI–DUI learning modes, firm–university collaboration and innovation. The Journal of Technology Transfer, 40(3), 475-492.
  • Gnyawali, D. R. and Park, B. J. R. (2011). Co-opetition between giants: Collaboration with competitors for technological innovation. Research Policy, 40(5), 650-663.
  • Granata, J., Géraudel, M., Gundolf, K., Gast, J. and Marques, P. (2016). Organisational innovation and coopetition between SMEs: a tertius strategies approach. International Journal of Technology Management, 71(1-2), 81-99.
  • Hisrich, R. D., Petković, S., Ramadani, V. and Dana, L. P. (2016). Venture capital funds in transition countries: Insights from Bosnia and Herzegovina and Macedonia. Journal of Small Business and Enterprise Development, 23(2), 296-315.
  • Hitt, M. A., Ahlstrom, D., Dacin, M. T., Levitas, E. and Svobodina, L. (2004). The institutional effects on strategic alliance partner selection in transition economies: China vs. Russia. Organization Science, 15(2), 173-185.
  • Hung, S. W. and Chang, C. C. (2012). A co-opetition perspective of technology alliance governance modes. Technology Analysis & Strategic Management, 24(7), 679-696.
  • Jankowska, B. (2011). Implications of coopetition for international competitiveness and internationalization of firms: perspective of SME and large companies. International Journal of Business and Management Studies, 3(1), 49-58.
  • Krammer, S. M. (2009). Drivers of national innovation in transition: Evidence from a panel of Eastern European countries. Research Policy, 38(5), 845-860.
  • Krommendijk K. (2016). Differences in coopetition due to firm size. In Proceedings of the 8th IBA Bachelor Thesis Conference, Enschede, The Netherlands. Retrieved on 10.01.2021. Available at: http://essay. utwente. nl/71653 /1/ Krom mendijkBABMS.pdf.
  • Kurtishi-Kastrati, S., Ramadani, V., Dana, L. P. and Ratten, V. (2016). Do foreign direct investments accelerate economic growth? The case of the Republic of Macedonia. International Journal of Competitiveness, 1(1), 71-98.
  • Leskovar-Spacapan, G. and Bastic, M. (2007). Differences in organizations’ innovation capability in transition economy: Internal aspect of the organizations’ strategic orientation. Technovation, 27(9), 533-546.
  • Loebbecke, C., Van Fenema, P. C. and Powell, P. (2016). Managing inter-organizational knowledge sharing. The Journal of Strategic Information Systems, 25(1), 4-14.
  • Majchrzak, A. and Malhotra, A. (2013). Towards an information systems perspective and research agenda on crowdsourcing for innovation. The Journal of Strategic Information Systems, 22(4), 257-268.
  • Marinova, D. (2001). Eastern European patenting activities in the USA. Technovation, 21(9), 571-584.
  • OECD. (2012a). Innovation for development: A discussion of the issues and an overview of work of the OECD Directorate for Science, Technology and Industry. Publications. Retrieved on 08.05.2021 from http://www.oecd.org/innovation /inno/50586251.pdf.
  • OECD. (2012b). OECD Science, Technology and Industry Outlook 2012, Part II Chapter 4: Innovation for development: The challenges ahead. Publications. Retrieved on 06.05.2021 from http://www.oecd.org/ innovation/inno/50586251 .pdf .
  • OECD, (2013). Science, Technology and Industry Scoreboard 2013. OECD Publishing, Paris. Retrieved on 08.05.2021 from https://www.oecd-ilibrary.org/science-and-technology/oecd-science-technology-and-industry-scoreboard-2013_sti_scoreboard-2013-en.
  • Park, B. J. R., Srivastava, M. K. and Gnyawali, D. R. (2014). Walking the tight rope of coopetition: Impact of competition and cooperation intensities and balance on firm innovation performance. Industrial Marketing Management, 43(2), 210-221.
  • Pekovic, S., Grolleau, G. and Mzoughi, N. (2020). Coopetition in innovation activities and firms' economic performance: An empirical analysis. Creativity and Innovation Management, 29(1), 85-98.
  • Peng, M. W. (2000). Business strategies in transition economies. London: Sage.
  • Peng, M. W. (2001). The resource-based view and international business. Journal of Management, 27(6), 803-829.
  • Petter, R. R. H., Resende, L. M., De Andrade Júnior, P. P. and Horst, D. J. (2014). Systematic review: an analysis model for measuring the coopetitive performance in horizontal cooperation networks mapping the critical success factors and their variables. The Annals of Regional Science, 53(1), 157-178.
  • Przychodzen, W. and Przychodzen, J. (2020). Determinants of renewable energy production in transition economies: A panel data approach. Energy, 191, 116583.
  • Quintana-Garcia, C. and Benavides-Velasco, C. A. (2004). Cooperation, competition, and innovative capability: A panel data of European dedicated biotechnology firms. Technovation, 24(12), 927-938.
  • Ramadani, V., Abazi-Alili, H., Dana, L. P., Rexhepi, G. and Ibraimi, S. (2017). The impact of knowledge spillovers and innovation on firm-performance: findings from the Balkans countries. International Entrepreneurship and Management Journal, 13(1), 299-325.
  • Ramadani, V., Hisrich, R. D., Abazi-Alili, H., Dana, L. P., Panthi, L. and Abazi-Bexheti, L. (2019). Product innovation and firm performance in transition economies: A multi-stage estimation approach. Technological Forecasting and Social Change, 140, 271-280.
  • Ratten, V., Ferreira, J. J. and Fernandes, C. I. (2017). Balkans entrepreneurship: the role of internal and external knowledge for business creation. World Review of Entrepreneurship, Management and Sustainable Development, 13(2-3), 126-140.
  • Ritala, P. and Hurmelinna-Laukkanen, P. (2009). What's in it for me? Creating and appropriating value in innovation-related coopetition. Technovation, 29(12), 819-828.
  • Ritala, P., Golnam, A. and Wegmann, A. (2014). Coopetition-based business models: The case of Amazon.com. Industrial Marketing Management, 43(2), 236-249.
  • Ritala, P., Kraus, S. and Bouncken, R. B. (2016). Introduction to coopetition and innovation: contemporary topics and future research opportunities. International Journal of Technology Management, 71(1-2), 1-9.
  • Sroka, W. (2013). Coopetition in the steel industry− Analysis of coopetition relations in the value net. Metalurgija, 52(1), 127-130.
  • Sternberg, R. and Wennekers, S. (2005). Determinants and effects of new business creation using global entrepreneurship monitor data. Small Business Economics, 24(3), 193-203.
  • Svejnar, J. (2002). Transition economies: Performance and challenges. Journal of Economic Perspectives, 16(1), 3-28.
  • Svetličič, M. and Rojec, M. (1994). Foreign direct investment and the transformation of Central European economies. MIR: Management International Review, 34(4), 293-312.
  • Szerb, L. (2008). The examination of the level of entrepreneurship in eight central Eastern European Countries. In Proceedings-6th International Conference on Management, Enterprise and Benchmarking (MEB 2008) (p.69-83). Óbuda University, Keleti Faculty of Business and Management.
  • Szerb, L. and Trumbull, W. N. (2016). The development of entrepreneurship in the European transition countries: Is transition complete?. Strategic Change, 25(2), 109-129.
  • Tether, B. S. (2002). Who co-operates for innovation, and why: an empirical analysis. Research Policy, 31(6), 947-967.
  • Vajjhala, N. R. (2013). Key barriers to knowledge sharing in medium-sized enterprises in transition economies. International Journal of Business and Social Science, 4(14), 90-98.
  • Verma, S. and Gustafsson, A. (2020). Investigating the emerging COVID-19 research trends in the field of business and management: A bibliometric analysis approach. Journal of Business Research, 118, 253-261.
  • World Bank. (2010). World Development Indicators 2010. The World Bank. Retrieved on 06.05.2021 from https://documents.worldbank.org/en/publication /documents-reports/documentdetail/988271468149678303/world-development-indicators-2010.
  • Wu, Y. Li, E. Y. and Chang, W. (2015). Nurturina user creative performance in social media networks: an integration of habit of use with social capital and information exchange theories. Internet Research, 26(4), 869–900.
  • Xheneti, M. and Bartlett, W. (2012). Institutional constraints and SME growth in post-communist Albania. Journal of Small Business and Enterprise Development, 19(4), 607-626.
  • Zehir, M. & Zehir, C. (2019). Investigation of the relationship between market orientation, coopetition, innovation capabilities and firm performance. The European Proceedings of Social & Behavioural Sciences, 75, 163-174.
  • Zhao Z, Renard D, Elmoukhlıss M and Balague C. (2016). What affects creative performance in idea co- creation: competitive, cooperative or coopetitive climate? International Journal of Innovation Management, 20(4), 1–24.