Managing coopetition in supplier networks: a paradox perspective - Buyers' and suppliers' responses to the coopetition paradox

4 important questions on Managing coopetition in supplier networks: a paradox perspective - Buyers' and suppliers' responses to the coopetition paradox

Both splitting and acceptance approaches to managing the paradox of coopetition can be successful in terms of avoiding negative tension dynamics if what kind of capabilities are present?

Coopetition capabilities at the level of the buying organisation are present.

When the buying firm has strong evaluative capabilities, what does this help them to do?

The firm is able to provide helpful cost improvement suggestions which, in turn, increase the potential for joint value creation through the creation of supplier (competence) trust.

When the buying firm has strong evaluative capabilities and demonstrates its intention for a fair division of value appropriation between both parties, what will happen?

Higher levels of supplier (goodwill) trust makes open book policies more likely.
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What three capabilities are needed to effectively manage a paradox?

  1. Technical capabilities: allow firms to better specify sourced materials and components and have been linked to the buyer's ability to efficiently coordinate supply chains. Thus, the capabilities allow buyers to build up collaborative relationships with suppliers in order to enhance joint value creation.
  2. Evaluative capabilities: not only contribute to value creation but also value-appropriation aspects of the buyer-supplier relationship.
  3. Organisational capabilities: come into play at the formation stage of the paradoxical relationship and can help to regulate felt tensions that result from an existing paradox.

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