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Trust-building mechanisms in a coopetition relationship: a case study design

Trust-building mechanisms in a coopetition relationship: a case study design PurposeFrom social network theory, this study aims to understand how trust is built in a coopetition relationship.Design/methodology/approachA case study of a qualitative nature was carried out using several semi-structured interviews with managers of two Brazilian firms involved in a dyadic coopetition relationship.FindingsBased on the empirical evidence, five categories/themes resulted for understanding trust-building mechanisms: mutual dependence, previous experience and reputation, awareness of the risks of opportunistic behaviour, contractual agreement and dynamic process. The juridical sphere, contractual agreement, was the only one identified in the study where firm representatives presented discordant positions, referring specifically to contractual relations of the terms of the agreement.Practical implicationsThe results of this study provide some suggestions for managers. First, before beginning interaction in a coopetition relationship, it is necessary to assess whether the coopetition relation meets the required conditions for interaction to take place. Second, the results suggest that firms should make provision against members of both organizations making the relationship vulnerable to acts of opportunism.Originality/valueThis case study is innovative because it reveals manifestations that could help to enhance knowledge of how organizations build trust in dyadic coopetition relationships. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Organizational Analysis Emerald Publishing

Trust-building mechanisms in a coopetition relationship: a case study design

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1934-8835
DOI
10.1108/IJOA-04-2016-1012
Publisher site
See Article on Publisher Site

Abstract

PurposeFrom social network theory, this study aims to understand how trust is built in a coopetition relationship.Design/methodology/approachA case study of a qualitative nature was carried out using several semi-structured interviews with managers of two Brazilian firms involved in a dyadic coopetition relationship.FindingsBased on the empirical evidence, five categories/themes resulted for understanding trust-building mechanisms: mutual dependence, previous experience and reputation, awareness of the risks of opportunistic behaviour, contractual agreement and dynamic process. The juridical sphere, contractual agreement, was the only one identified in the study where firm representatives presented discordant positions, referring specifically to contractual relations of the terms of the agreement.Practical implicationsThe results of this study provide some suggestions for managers. First, before beginning interaction in a coopetition relationship, it is necessary to assess whether the coopetition relation meets the required conditions for interaction to take place. Second, the results suggest that firms should make provision against members of both organizations making the relationship vulnerable to acts of opportunism.Originality/valueThis case study is innovative because it reveals manifestations that could help to enhance knowledge of how organizations build trust in dyadic coopetition relationships.

Journal

International Journal of Organizational Analysis – Emerald Publishing

Published: Jul 10, 2017

References

  • Market, hierarchy, and trust: the knowledge economy and the future of capitalism
  • Contract design as a firm capability: an integration of learning and transaction cost perspectives
  • Trust and performance in cross border marketing partnerships: a behavioral approach
  • Cooperation and competition in relationships between competitors in business networks
  • Coopetition” in business networks – to cooperate and compete simultaneously
  • Coopetition-Quo vadis? Past accomplishments and future challenges