Network position of a firm and the tendency to collaborate with competitors - a structural embeddedness perspective

Abstract

Collaboration between competing firms (coopetition) is increasingly important for firms operating in knowledge-intensive business sectors. There are, however, firm-specific differences in the tendency to form such relationships. In order to address the issue, this study explores why certain firms in the global ICT sector are better able and more likely to collaborate with their competitors than others. We approach the issue from the structural embeddedness perspective, examining firm centrality in its competitive and alliance networks. The findings indicate that firms with a central position in competitor networks are relatively more likely to engage in coopetition than those not so centrally placed. On the other hand, the findings show that firms holding a central position in their alliance networks collaborate relatively more with complementary partners than with their competitors.