Coopetition in supply chains: A case study of Australian construction industry in supplier market

Abstract

Coopetition is a relatively novel concept with limited application in the supply chain and marketing domains. Particularly, the benefits attributed to coopetition for supplying firms are relatively unexplored. This study attempts to explore this unique idea. A multiple case study method is used to extrapolate the benefits of coopetition in the supplier market in Australian construction industry. Moreover, 42 semi-structured interviews with senior managers from seven supplying firms, working with a single buyer, are undertaken. Results unveil that coopetition brings five major benefits for supplying firms. First, suppliers can reduce costs (research and development, transportation and logistics, inventory and warehouse). Second, small and medium-sized firms can expand their market share while large-scale firms can improve their work operations. Third, firms can have a fair share of risks (financial, operational etc.) and experience higher supply chain resilience. Fourth, employees across competing firms have better opportunities to share tactical operational knowledge/cross-industry knowledge and engage in joint programs. Fifth, firms are in a stronger position to contribute to sustainable business practices and corporate social responsibility by developing collaborative relationships with competing firms. The study offers some robust action plans to firms to reap the benefits associated with coopetition and further mitigate its dark side. The study, finally, concludes by discussing the limitations and future research directions.