Cooperation, Competition, and Coopetition - Dr. Rebecca Liu, Management School, Lancaster University, from the 2017 Allen D. Leman Swine Conference, September 16-19, 2017, St. Paul, Minnesota, USA. More presentations at http://www.swinecast.com/2017-leman-swine-conference-material

1. KEYNOTE:
Cooperation, Competition
& Co-opetition
September 19, 2017
Rebecca Liu

2. Cooperation, Competition & Co-opetition
• What?
• Why?
• Why Not?
• How?

3. Survival and
Sustainable Growth
Competition
Low Cost
Differentiation
Why to do?
• To win
• To induce better
innovation
• For anti-trust/anti-
monopoly
Why NOT to do ?
• Win-lose scepticism
• Loss of important
resources
• Undermines the long-
term viability

4. Competition has been
shown to be useful up to a
certain point and no
further, but cooperation,
which is the thing we must
strive for today…
-- Franklin Roosevelt

5. Survival and
Sustainable Growth
Competition
Cooperation

6. Survival and
Sustainable Growth
• Productive
collaborative
alliances
• Complementary
resources
• Helpful industry
networks
Cooperation
‘When cooperation works well,
you feel inspired and you can feel
the collaborative energy’

7. cooperation
Efficiency
1+1 > 2
Share risks
&
uncertainties
Turning win-
lose towards
win-win
Learning
-knowledge
- Know-how
Access to
resources
Why to do?

8. It’s happening in this industry
The
Maschhoffs’
successful
storyResource
alignment is
the key
To make the
whole greater
than the sum
of its parts
Applying a
collaborative
approach in a
competitive
industry
The Greater
Good: an
integrated pork
producers’
perspective

9. The world of
cooperation

10. Cooperation
Decelerates
progress
Difficult and
painful
experience
Failed without
achieving
anything
The fear of
opportunistic
behaviour …
Why NOT to do

11. To do or
Not to do?
PROs CONs

12. Cooperation
with
competitors
is getting
popular BUT a
tricky one
Co-opetition

13. Sleeping with the enemy
Over 50% of collaborative relations
(strategic alliances) occurred between firms
within the same industry or among
competitors.
A risky but potentially
rewarding endeavour
Co-opetition

14. Co-opetition
Create
common
technologies
A uniform
voice in the
marketplace
A successful
win-win
strategy to
expand
market
SMEs’ collective-
ability to deal
with oligopoly…
Relevant
resources
Why to do?

15. Co-opetition
Risk of know-
how leaking
Coordination
challenges
and tension
management
..
Loss of
control
Value
appropriation
issues….
Issues of trust,
commitment &
opportunism
Why NOT to do

16. Whyare some
firms better able
than others to reap
benefits from Co-
opetition? …

17. CASE 1*
Cross-Industry, Finland
Absorptive
Capacity
A firm’s ability to
recognize the value
of new, external
information/know-
how, assimilate it
and apply it to
commercial ends
Appropriability
Regime
How a firm protects
itself from imitation
(protect IPR
mechanisms,
patent, copyright,
trademark, etc.)
Learning
Protection

18. CASE 2**
Pharmaceutical, USA
Incremental
Innovation
Radical
Innovation

19. CASE 3***
Healthcare, Taiwan;
Telcom Manufacturing, Europe
A Two-Pronged Approach
Complementary but distinctly different
sets of resources
Separate the fields of competition and
cooperation

20. Cooperation in
sales and
marketing activities
Competition in
manufacturing and
R&D …
A Two-Pronged Approach
Openness
Innovation
Globalisation
Technology
Appropriation

21. Co-optition
is still evolving in
theory and in
practice…

22. Competition,
Cooperation
& Co-optition
in the Pork and
Swine Industry?
To be continued…

23. Thank you
&
All the best.
Rebecca.liu@Lancaster.ac.uk
19 September, 2017
Allen D. Leman Swine Conference
Saint Paul, Minnesota

24. REFERENCES
* Ritala, Paavo, and Pia Hurmelinna‐Laukkanen. "Incremental and radical innovation in
coopetition—The role of absorptive capacity and appropriability." Journal of Product
Innovation Management 30.1 (2013): 154-169.
** Xu, Shichun, Fang Wu, and Erin Cavusgil. "Complements or substitutes? Internal
technological strength, competitor alliance participation, and innovation development."
Journal of Product Innovation Management 30.4 (2013): 750-762.
***/1 Peng, Tzu‐Ju Ann, and Mike Bourne. "The coexistence of competition and
cooperation between networks: implications from two Taiwanese healthcare networks."
British Journal of Management 20.3 (2009): 377-400.
***/2 Fernandez, Anne-Sophie, Frédéric Le Roy, and Devi R. Gnyawali. "Sources and
management of tension in co-opetition case evidence from telecommunications
satellites manufacturing in Europe." Industrial Marketing Management 43.2 (2014): 222-
235.