Microfoundations of dynamic coopetition capabilities in firms from a microbrewery cluster
DOI:
https://doi.org/10.1108/REGE-04-2021-0064Keywords:
Coopetition, Dynamic Capabilities, Microfoundations, Case study, MicrobreweriesAbstract
Purpose – The objective of this research was to analyze the microfoundations of dynamic capabilities used by microbreweries in Porto Alegre (Brazil) in their coopetition strategies.
Design/methodology/approach – A case study with a qualitative approach was developed. Data were collected during interviews with owners of eleven microbreweries, via analysis of documents, and non-participatory observation. The authors used the content analysis technique to infer knowledge.
Findings – We identified the microfoundations of dynamic coopetition capabilities including collective purchases, shared distribution expenses, shared production, education of consumers and other beer producers, group interaction, and a business roundtable with entrepreneurs from the food and drink sector in the hospitality industry.
Research, Practical & Social implications – We developed a framework that considers the relationship between the microfoundations of dynamic capabilities and coopetition regarding the paradox between competition and cooperation. It is relevant to identify different actors’ movements and the potential outcomes of coopetitive strategies, which yield a competitive advantage for the cluster.
Originality/value – Our study highlights how small companies can jointly develop competitive advantage in a market dominated by a large company.
Downloads
References
Abdallah, F., and Wadhwa, A. (2009), Collaborating with your rivals: Identifying sources of coopetitive performance, Copenhagen Business School, Copenhagen.
Associação Brasileira da Indústria da Cerveja (CervBrasil). (2018), Anuário, available at http://www.cervbrasil.org.br/novo_site/anuario/
Associação de Cervejeiros Artesanais do Rio Grande do Sul (Acerva Gaúcha). (2016), Acerva Gaúcha – Início, available at http://www.acervagaucha.com.br
Associação Gaúcha de Microcervejarias (AGM). (2016), AGM - Associação Gaúcha de Microcervejarias | Facebook, available at https://www.facebook.com/agm.org.rs/
Bardin, L. (2011), Análise de conteúdo, Edições70, Lisboa.
Barney, J. A. Y., and Felin, T. (2013), “What are microfoundations?”, Academy of Management Perspectives, Vol. 27 No. 2, pp. 138–155. doi:10.5465/amp.2012.0107
Becker, M.C. (2016), “Organizational Routines”, in Augier, M., and Teece, D., The Palgrave Encyclopedia of Strategic Management, Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_744-1
Bengtsson, M., Kock, S., Lundgren-Henriksson, E.-L., and Näsholm, M. H. (2016), “Coopetition research in theory and practice: Growing new theoretical, empirical, and methodological domains”, Industrial Marketing Management, Vol. 57, pp. 4–11. doi:10.1016/j.indmarman.2016.05.002
Beverage Industry. (2019), 2018 Beer Market Report, available at https://www.bevindustry.com/2018-beer-market-report.
Bouncken, R. B., Clauß, T., and Fredrich, V. (2016), “Product innovation through coopetition in alliances: Singular or plural governance?”, Industrial Marketing Management, Vol. 53, pp. 77–90. doi:10.1016/j.indmarman.2015.11.011
Bouncken, R. B., Fredrich, V., and Kraus, S. (2019), “Configurations of firm-level value capture in coopetition”, Long Range Planning, Vol. 53 No. 1, pp. 101869. doi:10.1016/j.lrp.2019.02.002.
Bouncken, R. B., Fredrich, V., Ritala, P., and Kraus, S. (2018), “Coopetition in new product development alliances: Advantages and tensions for incremental and radical innovation”, British Journal of Management, Vol. 29 No. 3, pp. 391–410. doi:10.1111/1467-8551.12213
Bouncken, R. B., Gast, J., Kraus, S., and Bogers, M. (2015), “Coopetition: a systematic review, synthesis, and future research directions”, Review of Managerial Science, Vol. 9 No. 3, pp. 577-601. doi: 10.1007/s11846-015-0168-6
Chen, M. J. (2008), “Reconceptualizing the competition-cooperation relationship: A transparadox perspective”, Journal of Management Inquiry, Vol. 17, pp. 288–304. doi:10.1177/1056492607312577
Chung, H. M., and Cheng, L. H. (2019), “Coopetition and Firm Survival in a Cluster: Insights from the Population Ecology on the Yacht Industry in an Emerging Economy, 1957–2010”, Management and Organization Review, Vol. 15 No. 4, pp. 837-856. doi: 10.1017/mor.2018.60
Crick, J. M., and Crick, D. (2021), “The dark-side of coopetition: Influences on the paradoxical forces of cooperativeness and competitiveness across product-market strategies”, Journal of Business Research, Vol. 122, pp. 226–240. doi:10.1016/j.jbusres.2020.08.065
Cusin, J., and Loubaresse, E. (2018), “Inter-cluster Relations in a Coopetition Context: the Case of Inno'vin”, Journal of Small Business & Entrepreneurship, Vol. 30 No. 1, pp. 27-52. doi:10.1080/08276331.2017.1356158
DeCuir-Gunby, J. T., Marshall, P. L., and McCulloch, A. W. (2011), “Developing and using a codebook for the analysis of interview data: An example from a professional development research project”, Field Methods, Vol. 23 No. 2, pp. 136–155. doi:10.1177/1525822X10388468
Dhanaraj, C., and Parkhe, A. (2006), “Orchestrating innovation networks”, Academy of Management Review, Vol. 31 No. 3, pp. 659-669. Doi:10.5465/amr.2006.21318923
Dias, M. O., and Teles, A. (2019), “Facts and perspectives on craft brewing industry in Brazil”, International Journal of Management, Technology and Engineering, Vol. 9 No. 2, pp. 1020–1028. doi:16.10089.IJMTE.2019.V9I21.18.28020
Eisenhardt, K. M., Furr, N. R., and Bingham, C. B. (2010), “CROSSROADS-Microfoundations of performance: Balancing efficiency and flexibility in dynamic environments”, Organization Science, Vol. 21 No. 6, pp. 1263–1273. doi:10.1287/orsc.1100.0561
Escola da Cerveja. (2016), Quem somos, available at http://www.escoladacerveja.com.br/
Felin, T., Foss, N. J., Heimeriks, K. H., and Madsen, T. L. (2012), “Microfoundations of routines and capabilities: Individuals, processes, and structure”, Journal of Management Studies, Vol. 49 No. 8, pp. 1351–1374. doi:10.1111/j.1467-6486.2012.01052.x
Flick, U. (2014), An introduction to qualitative research, Sage, London, UK.
Giuliani, E., and Bell, M. (2005), “The micro-determinants of meso-level learning and innovation: Evidence from a Chilean wine cluster”, Research Policy, Vol. 34 No. 1, pp. 47–68. doi:10.1016/j.respol.2004.10.008
Gnyawali, D. R., and Charleton, T. R. (2018), “Nuances in the interplay of competition and cooperation: Towards a theory of coopetition”, Journal of Management, Vol. 44 No. 7, pp. 2511–2534. doi:10.1177/0149206318788945
Gnyawali, D. R., and Park, B.-J. (2011), “Co-opetition between giants: Collaboration with competitors for technological innovation”, Research Policy, Vol. 40 No. 5, pp. 650–663. doi:10.1016/j.respol.2011.01.009
Gnyawali, D. R., Madhavan, R., He, J., and Bengtsson, M. (2016), “The competition–cooperation paradox in inter-firm relationships: A conceptual framework”, Industrial Marketing Management, Vol. 53, pp. 7-18. doi:10.1016/j.indmarman.2015.11.014
Hargrave, T. J., and Van de Ven, A. H. (2017), “Integrating dialectical and paradox perspectives on managing contradictions in organizations”, Organization Studies, Vol. 38 No. 3–4, pp. 319–339. doi:10.1177/0170840616640843
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., and Winter, S. G. (2007), Dynamic capabilities: Understanding strategic change in organizations, John Wiley & Sons.
Hoffmann, W., Lavie, D., Reuer, J. J., and Shipilov, A. (2018), “The interplay of competition and cooperation”, Strategic Management Journal, Vol. 39 No. 12, pp. 3033–3052. doi:10.1002/smj.2965
Inigo, E. A., Albareda, L., and Ritala, P. (2017), “Business model innovation for sustainability: Exploring evolutionary and radical approaches through dynamic capabilities”, Industry and Innovation, Vol. 24 No. 5, pp. 515-542. doi: 10.1080/13662716.2017.1310034
Jakobsen, S. (2020), “Managing tension in coopetition through mutual dependence and asymmetries: A longitudinal study of a Norwegian R&D alliance”, Industrial Marketing Management, Vol. 84, pp. 251-260.doi: 10.1016/j.indmarman.2019.07.006
Kraus, S., Gast, J., Klimas, P., and Stephan, T. (2019), “Sleeping with competitors: Types, drivers and outcomes of coopetition of small- and medium-sized craft beer breweries”, International Journal of Entrepreneurial Behaviour & Research, Vol. 25 No. 1, pp. 50-66. doi:10.1108/IJEBR-09-2017-0356
Lima, G. B., Nastri Neto, O., and De Carvalho, D. T. (2013), “O papel e a importância das mídias sociais no composto de comunicação de pequenas empresas: Um estudo de caso em micro-cervejaria”, Revista de Administração, Contabilidade e Economia da Fundace, Vol. 4 No. 1, pp. 1–16. doi:10.13059/racef.v4i1.50
Lundgren-Henriksson, E. L., and Tidström, A. (2021), “Temporal distancing and integrating: Exploring coopetition tensions through managerial sensemaking dynamics”, Scandinavian Journal of Management, Vol. 37 No. 3, pp. 101168. doi:10.1016/j.scaman.2021.101168
Marshall, A. (1920). Industry and trade. A Study of industrial technique and business organization and of their influences on the condition of various classes and nations,”, Macmillan and Co., London, UK.
Melo, G. T., and Machado, A. G. (2020), “Learning, strategizing, and organizational routines in the product development process from a dynamic capability perspective”, Revista de Administração Mackenzie, Vol. 21 No. 5. Doi:10.1590/1678-6971/eRAMR200153
Monticelli, J. M., Garrido, I. L., and de Vasconcellos, S. L. (2018), “Coopetition and institutions: A strategy for Brazilian wineries facing internationalization”, International Journal of Wine Business Research, Vol. 30 No. 1, pp. 74–95. doi:10.1108/IJWBR-08-2016-0028
Monticelli, J. M., Silveira, A. B. da, and Silva, L. M. da. (2018), “The process of coopetitive strategy: A case study of microbreweries in Porto Alegre”, RAM – Revista De Administração Mackenzie, Vol. 19 No. 4, pp. 1–32. doi:10.1590/1678-6971/eramr180012
Padula, G., and Dagnino, G. B. (2007), “Untangling the rise of coopetition: The intrusion of competition in a cooperative game structure”, International Studies of Management & Organization, Vol. 37 No. 2, pp. 32–52. doi:10.2753/IMO0020-8825370202
Peng, T. J. A., Yen, M. H., and Bourne, M. (2018), “How rival partners compete based on cooperation?”, Long Range Planning, Vol. 51 No. 2, pp. 351-383. Doi: 10.1016/j.lrp.2017.10.003
Raza-Ullah, T. (2020), “Experiencing the paradox of coopetition: A moderated mediation framework explaining the paradoxical tension–performance relationship”, Long Range Planning, Vol. 53 No. 1, pp. 101863. doi:10.1016/j.lrp.2018.12.003
Ricciardi, F., Zardini, A., and Rossignoli, C. (2016), “Organizational dynamism and adaptive business model innovation: The triple paradox configuration”, Journal of Business Research, Vol. 69 No. 11, pp. 5487–5493. doi:10.1016/j.jbusres.2016.04.154
Saldaña, J. (2015), The coding manual for qualitative researchers (3rd ed.), Sage, London, UK.
Serviço Brasileiro de Apoio às Micro e Pequenas Empresas (Sebrae) (2015), Sebrae/RS inicia projeto para microcervejarias, available at https://sebraers.com.br/sebrae-rs-inicia-projeto-para-estimular-microcervejarias-do-estado/
Shen, H., Gao, Y., Liu, C. and Chen, X. (2021), "The contingent effects of coopetition on new product development under dual institutional interactions: evidence from China", Chinese Management Studies, Vol. 15 No. 5, pp. 1104-1119. https://doi.org/10.1108/CMS-10-2018-0726
Silva, L. M. D. (2020), The influence of dynamic capabilities on the inclusion of stakeholders in the responsible innovation process: The case of healthcare technology companies (Doctorate dissertation), Escola de Gestão e Negócios, Programa de Pós-Graduação em Administração, Universidade do Vale do Rio dos Sinos – Unisinos, Porto Alegre, RS, Brazil, available at http://www.repositorio.jesuita.org.br/handle/UNISINOS/9192
Stadtler, L., and Van Wassenhove, L. N. (2016), “Coopetition as a paradox: Integrative approaches in a multi-company, cross sector partnership”, Organization Studies, Vol. 37 No. 5, pp. 655–685. doi:10.1177/0170840615622066
Stefenon, R. (2012), “Vantagens competitivas sustentáveis na indústria cervejeira: O caso das cervejas especiais”, Revista Capital Científico-Eletrônica (RCCe), Vol. 10 No. 1, pp. 1–16, available at: https://revistas.unicentro.br/index.php/capitalcientifico/article/view/1539/1723
Teece, D. J., Pisano, G., and Shuen, A. (1997), “Dynamic capabilities and strategic management”, Strategic Management Journal, Vol. 18 No. 7, pp. 509–533. doi:10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Teece, D.J. (2007), “Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance”, Strategic Management Journal, Vol. 28 No. 13, pp. 1319-1350.
Waluszewski, A., Snehota, I., and La Rocca, A. (2019), “What remains to be discovered? Manifesto for researching the interactive business world”, Journal of Business & Industrial Marketing, Vol. 34 No. 1, pp. 232–239. doi:10.1108/JBIM-11-2018-0325
Yin, R. K. (2018), Case study research and applications: Design and methods (6th ed), Sage, London, UK.
Zacharia, Z., Plasch, M., Mohan, U., and Gerschberger, M. (2019), “The emerging role of coopetition within inter-firm relationships”, International Journal of Logistics Management, Vol. 30 No. 2, pp. 414–437. doi:10.1108/IJLM-02-2018-0021
