Managing coopetition in supplier networks: a paradox perspective - Theoretical background - Coopetition in buyer-supplier relations

5 important questions on Managing coopetition in supplier networks: a paradox perspective - Theoretical background - Coopetition in buyer-supplier relations

What is competition? When does it happen?

The absence of a link between two companies when at least one of the following conditions are met:
  1. The two firms can supply a product of equivalent functionality.
  2. The firms require similar scarce resources or input.
  3. The two firms have overlapping and complementary technology.

When is the value-creation potential the highest in terms of coopetition?

In the early stages of the product development process.

What percentage of the costs are determined in the predevelopment phase of coopetition?

70%
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When do the competitive tensions become fiercest in coopetition?

When the joint value-creation is appropriated by both partners.

What is the critical issue of coopetition?

To manage buyer-supplier relations so that:
  • both the contradictory elements of a paradox are accepted and present.
  • maximum value can be derived from buyer-supplier relationships, ideally to allow for the reciprocity (cooperation) that is considered necessary to maintain long-term interorganisational relations.

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