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Partnering based on coopetition in the interorganizational networks of tourism: a comparison between Curitiba and Foz do Iguaçu, Brazil

Abstract

Purpose:

This paper presents a model to analyze the context and critical behavior of interorganizational partnering based on the coopetition strategy.

Design/methodology/approach:

This research is exploratory, and makes use of descriptive statistical methodology. Data collection was based on an entrepreneurial perception survey applied to 545 tourism firms and 49 local business associations in two Brazilian cities.

Findings:

The main theoretical approach of this research was to introduce a partnering model, and its variables, based on coopetition - whereas its main empirical finding was to prove that the high internal competition among participants, within the tourism sector, is a greater source of coopetition behavior than external competition itself. Shared values, mutual trust, complementarity and awareness of the competitive advantages that result from partnering co-exist with the internal competition between firms belonging to this sector.

Originality/value:

Coopetition in the tourism sector has been little explored, but this study confirms that coopetition is a hybrid behavior which is very suitable to explain current market relationships; it also represents the interorganizational networks generated by business associations. The value of this research was to provide a scale to measure cooperative and competitive contexts on partnering based on the coopetition strategy, which can be applied to other industries or sectors.

Keywords:
Coopetition; Interorganizational networks; Partnering; Tourism

Resumo

Objetivo:

Este artigo tem como objetivo apresentar um modelo para analisar o contexto e o comportamento crítico da associação interorganizacional com base na estratégia de coopetição.

Metodologia:

A pesquisa é exploratória, com metodologia estatística descritiva. A coleta de dados baseou-se em um questionário de percepção empresarial aplicado a 545 empresas de turismo e a 49 associações empresariais locais em duas cidades brasileiras.

Resultados:

O principal resultado teórico foi a introdução de um modelo de associação (partnering) e suas variáveis baseadas na coopetição. O principal resultado empírico foi comprovar que a alta competição interna entre os participantes no setor de turismo é uma maior fonte de comportamento de coopetição do que a concorrência externa. Valores compartilhados, confiança mútua, complementaridade e conscientização das vantagens competitivas derivadas da parceria coexistem com a concorrência interna entre as empresas desse setor.

Contribuições:

A coopetição no setor de turismo é pouco pesquisada, mas este estudo confirma que é um comportamento híbrido muito apropriado para explicar as relações atuais nos mercados, além de representar as redes interorganizacionais geradas pelas associações empresariais. O valor dessa pesquisa foi fornecer uma escala para medir o contexto cooperativo e competitivo para a associação baseada na estratégia de coopetição, que pode ser aplicada a outras indústrias ou setores.

Palavras-chave:
Coopetição; Redes interorganizacionais; Associação; Turismo

1 Introduction

The establishment of cooperative alliances among participants in a value chain is the relationship defined by Crowley and Karim (1995Crowley, L. G., & Karim, M. A. (1995). Conceptual model of partnering. Journal of Management in Engineering, 11(5), 33-39.) as ‘partnering’. This cooperative strategy is implemented by organizations to modify and supplement the traditional boundaries that separate organizations in a competitive environment. Thus, ‘partnering’ can be used to create a cohesive environment, allowing all associate members to interact and to be integrated in the realization of a shared project.

Brandenburger and Nalebuff (1996Brandenburger, A. M., & Nalebuff, B. J. (1996). Co-opetition. Hammersmith: Harper Collins Business.) have proposed the term coopetition as a value network among competitors, complementary firms, suppliers, and clients. Coopetition is summarized by Bengtsson and Kock (2014Bengtsson, M., & Kock, S. (2014). Coopetition-Quo vadis? Past accomplishments and future challenges. Industrial Marketing Management, 43(2), 180-188.) as a vertical or horizontal relationship in the creation of a value chain; therefore, competition is not direct. Organizations compete for the general benefits of a transaction and not only for market shares. Over time, research concerning coopetition has evolved, especially about the impact on a firm’s performance (Bouncken, Gast, Kraus, & Bogers, 2015Bouncken, R. B., Gast, J., Kraus, S., & Bogers, M. (2015). Coopetition: A systematic review, synthesis, and future research directions. Review of Managerial Science, 9(3), 577-601.). In this sense, Czernek and Czakon (2016Czernek, K., & Czakon, W. (2016). Trust-building processes in tourist coopetition: The case of a Polish region. Tourism Management, 52, 380-394.) noted that cost savings, resource access and sharing, enhanced value creation and stimulation of innovation are listed among potential gains resulting from this strategy.

In this context, business associations are organizations that bring together firms in order to generate strategic alliances for the sector, acting as a type of governance. They are the hub of several interorganizational coopetition networks, which may combine the best of both extremes - cooperation and competition. At this stage, the approach of Bouncken, Clauß and Fredrich (2016Bouncken, R. B., Clauß, T., & Fredrich, V. (2016). Product innovation through coopetition in alliances: Singular or plural governance? Industrial Marketing Management, 53, 77-90.) indicated that relational governance has a positive relationship with innovation in coopetition alliances, because it favors development of trust, reciprocity, and social embeddedness. Indeed, partnering generates a network with coopetition behavior, because cooperation occurs simultaneously to competition (Bengtsson & Kock, 2014Bengtsson, M., & Kock, S. (2014). Coopetition-Quo vadis? Past accomplishments and future challenges. Industrial Marketing Management, 43(2), 180-188.; Luo, 2007Luo, Y. (2007). A coopetition perspective of global competition. Journal of World Business, 42(2), 129-144.).

There is still an inherent paradox underlined by some authors, for instance, Tidström (2014Tidström, A. (2014). Managing tensions in coopetition. Industrial Marketing Management, 43(2), 261-271.), Le Roy and Czakon (2016Le Roy, F., & Czakon, W. (2016). Managing coopetition: the missing link between strategy and performance. Industrial Marketing Management, 53, 3-6.) and others, regarding the potential tension between creation and capture of value. That is, network participants cooperate to create collective value while they compete for individual benefits (Ritala & Tidström, 2014Ritala, P., & Tidström, A. (2014). Untangling the value-creation and value-appropriation elements of coopetition strategy: A longitudinal analysis on the firm and relational levels. Scandinavian Journal of Management, 30(4), 498-515.). In this sense, business associations contribute to solve problems resulting from coordination among peers.

In short, coopetition is the base of business strategy in most of present markets’ interorganizational networks or strategic alliances. Nevertheless, this has been little studied for the services industry, especially as to tourism (Ritala, Hurmelinna-Laukkanen & Blomqvist, 2009Ritala, P., Hurmelinna-Laukkanen, P., & Blomqvist, K. (2009). Tug of war in innovation-coopetitive service development. International Journal of Services Technology and Management, 12(3), 255-272.). However, coopetition is a more realistic behavior of many business relationships and it is an intrinsic feature in the formation of interorganizational networks, since participants look for individual benefits besides collective advantages.

This research considers partnering as defined by organizational literature (Cheng, Li & Love, 2000Cheng, E. W., Li, H., & Love, P. E. D. (2000). Establishment of critical success factors for construction partnering. Journal of Management in Engineering, 16(2), 84-92.; Mohr & Spekman, 1994Mohr, J., & Spekman, R. (1994). Characteristics of partnership success: partnership attributes, communication behavior, and conflict resolution techniques. Strategic management Journal, 15(2), 135-152.), but we add a viewpoint wherein coopetition (Brandenburger & Nabelluf, 1996Brandenburger, A. M., & Nalebuff, B. J. (1996). Co-opetition. Hammersmith: Harper Collins Business.) is seen as basic strategy to partnering. This concept better explains the behavior of network participants. According to this baseline, the coopetition inducer’s factors contribute to partnering. Thus, the research has twofold objectives. The first was to present a partnering model based on coopetition strategy, with its variables and scales of measuring. The second was to apply the model to the tourism sector of two Brazilian cities, in order to verify context and behavior towards partnering. The paper presents an exploratory analysis based on theoretical review and descriptive statistics. To this end, an entrepreneurial perception survey was used to collect data, applied to 545 tourism entrepreneurs and 49 business associations in Curitiba and Foz do Iguaçu, both cities located in Brazil. The sample was stratified as to the official classification adopted by Brazil’s National Statistical System to classify economic activities.

Next, the paper was structured as follows: section 2 presents a theoretical background on interorganizational coopetition networks and partnering; methodological aspects are explained in section 3; section 4 presents theoretical results (model and variables/scales) and the empirical results verified in the two Brazilian cities; and, finally, section 5 presents the discussion and conclusions of this research.

2 Interorganizational coopetition networks

The coopetition construct began in a simple way, being simultaneously considered ‘competition + cooperation’ (Luo, 2007Luo, Y. (2007). A coopetition perspective of global competition. Journal of World Business, 42(2), 129-144.; Von Friedrichs Grängsjö, 2003Von Friedrichs Grängsjö, Y. (2003). Destination networking: Co-opetition in peripheral surroundings. International Journal of Physical Distribution & Logistics Management, 33(5), 427-448.). However, it evolved over time, while research revealed that the traditional boundaries between firms were no longer explained by classical approaches based on competitiveness or cooperation (Zhang & Frazier, 2011Zhang, J., & Frazier, G.V. (2011). Strategic alliance via co-opetition: Supply chain partnership with a competitor. Decision Support Systems, 51(4), 853-863.). In practice, we observe that firms belonging to a same sector complement each other to establish a market, and compete by sharing this market (Schiavone & Simoni, 2011Schiavone, F., & Simoni, M. (2011). An experience-based view of co-opetition in R&D networks. European Journal of Innovation Management, 14(2), 136-154.).

Dagnino and Padula (2002Dagnino, G., & Padula, G. (2002). Coopetition strategy: A new kind of interfirm dynamics for value creation. Paper presented at the European Academy of Management Annual Conference, Stockholm, Sweden, 2. pp. 9-11. Retrieved from http://ecsocman.hse.ru/data/977/644/1219/coopetition.pdf
http://ecsocman.hse.ru/data/977/644/1219...
) carried out research on coopetition in the entrepreneurial context and highlighted three significant insights: (a) the interdependence of companies is both a source of economic value creation and a place to divide economic value; (b) interdependence is based on a variable game, with a positive sum that brings mutual benefits, but not equitable necessarily due to competitive pressures; (c) interdependence among companies is derived from partial and convergent interests. In the same line of thought, Le Roy and Czakon (2016Le Roy, F., & Czakon, W. (2016). Managing coopetition: the missing link between strategy and performance. Industrial Marketing Management, 53, 3-6.) spotlight learning in coopetition relationships, which can be symmetry (win-win relationship) or asymmetry (win-lose relationship). Thus, coopetition is considered the source of superior advantages, but also as a source of risks (Pellegrin-Boucher, Le Roy, & Gurau, 2013Pellegrin-Boucher, E., Le Roy, F., & Gurău, C. (2013). Coopetitive strategies in the ICT sector: Typology and stability. Technology Analysis & Strategic Management, 25(1), 71-89.).

Research has doubtless revealed positive and negative aspects generated by coopetition, but, indeed, whether good or bad, it is the true foundation behind the partnering of any kind of alliance. Thus, it is necessary to study its formation factors. Scholars indicate several factors as moderating, mediating or inducers of coopetition. The theoretical framework of Zheng and Chen (2003Zeng, M., & Chen, X. P. (2003). Achieving cooperation in multiparty alliances: A social dilemma approach to partnership management. Academy of Management Review, 28(4), 587-605.) consider the threat of competition, communication, reciprocity, and interaction in the network as motives to coopete. In a similar way, Ritala (2012Ritala, P. (2012). Coopetition strategy? When is it successful? Empirical evidence on innovation and market performance. British Journal of Management, 23(3), 307-324.) found that market uncertainty, network externalities, and competitive intensity moderate the relationship between coopetition strategy and market performance. Le Roy, Robert and Lasch (2016Le Roy, F., Robert, M., & Lasch, F. (2016). Choosing the best partner for product innovation: Talking to the enemy or to a friend? International Studies of Management & Organization, 46(2-3), 136-158.) included geographical distance. On the other hand, Bouncken et al. (2016Bouncken, R. B., Clauß, T., & Fredrich, V. (2016). Product innovation through coopetition in alliances: Singular or plural governance? Industrial Marketing Management, 53, 77-90.) found governance mechanisms to be an inductor of results within coopetition alliances, and the approach of Klimas (2016Klimas, P. (2016). Organizational culture and coopetition: An exploratory study of the features, models and role in the Polish Aviation Industry. Industrial Marketing Management, 53, 91-102.) has included cultural similarity among partners.

2.1 Partnering: a critical context of cooperation and competition

Leite, Lopes and Silva (2009Leite, R. S., Lopes, H. E. G., & Silva, S. A. D. (2009). A estratégia em relacionamentos coopetitivos: Um estudo do arranjo produtivo de Nova Serrana. Revista Brasileira de Gestão de Negócios, 11(30), 65-78.) underline that the relationship among firms has become complex, so the traditional separation between competitors and partners is harder to establish. In this context, the existence of shared values and social cohesion supports a cooperative network. Following coopetition studies (Baruch & Lin, 2012Baruch, Y., & Lin, C. P. (2012). All for one, one for all: Coopetition and virtual team performance. Technological Forecasting and Social Change, 79(6), 1155-1168.; Chin, Chan, & Lam, 2008Chin, K. S., Chan, B. L., & Lam, P. K. (2008). Identifying and prioritizing critical success factors for coopetition strategy. Industrial Management & Data Systems, 108(4), 437-454.; Della Corte & Sciarelli, 2012Della Corte, V., & Sciarelli, M. (2012). Can coopetition be source of competitive advantage for strategic networks? Corporate Ownership and Control, 10(1), 363-379.; Lin, Wang, Tsai, & Hsu, 2010Lin, C. P., Wang, Y. J., Tsai, Y. H., & Hsu, Y. F. (2010). Perceived job effectiveness in coopetition: A survey of virtual teams within business organizations. Computers in Human Behavior, 26(6), 1598-1606.; Zineldin, 2004Zineldin, M. (2004). Co-opetition: The organsation of the future. Marketing Intelligence & Planning, 22(7), 780-790.) and the theory of interorganizational relationship (Coote, Forrest, & Tam, 2003Coote, L. V., Forrest, E. J., & Tam, T. W. (2003). An investigation into commitment in non-Western industrial marketing relationships. Industrial Marketing Management, 32(7), 595-604.), the higher the degree of common culture and shared values, the better the tendency to share resources, knowledge and work. This joint effort aims at a global target above individual goals (Coote et al., 2003Coote, L. V., Forrest, E. J., & Tam, T. W. (2003). An investigation into commitment in non-Western industrial marketing relationships. Industrial Marketing Management, 32(7), 595-604.; Klimas, 2016Klimas, P. (2016). Organizational culture and coopetition: An exploratory study of the features, models and role in the Polish Aviation Industry. Industrial Marketing Management, 53, 91-102.; Morgan & Hunt, 1994Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. The Journal of Marketing, 58(3), 20-38.).

Mutual trust is another usual variable used in coopetition research (Baruch & Lin, 2012Baruch, Y., & Lin, C. P. (2012). All for one, one for all: Coopetition and virtual team performance. Technological Forecasting and Social Change, 79(6), 1155-1168.; Chin et al., 2008Chin, K. S., Chan, B. L., & Lam, P. K. (2008). Identifying and prioritizing critical success factors for coopetition strategy. Industrial Management & Data Systems, 108(4), 437-454.; Della Corte & Sciarelli, 2012Della Corte, V., & Sciarelli, M. (2012). Can coopetition be source of competitive advantage for strategic networks? Corporate Ownership and Control, 10(1), 363-379.) and interorganizational studies (Cheng et al., 2000Cheng, E. W., Li, H., & Love, P. E. D. (2000). Establishment of critical success factors for construction partnering. Journal of Management in Engineering, 16(2), 84-92.; Crowley & Karim, 1995Crowley, L. G., & Karim, M. A. (1995). Conceptual model of partnering. Journal of Management in Engineering, 11(5), 33-39.; Mohr & Spekman, 1994Mohr, J., & Spekman, R. (1994). Characteristics of partnership success: partnership attributes, communication behavior, and conflict resolution techniques. Strategic management Journal, 15(2), 135-152.). Trust in the entrepreneurial context has been studied for years, due to its importance to potentiate work systems that require interdependence, such as teamwork or participatory management (Guillén Parra, Lleó de Nalda, & Marco Perles, 2011Guillén Parra, M., Lleó de Nalda, A., & Marco Perles, G. S. (2011). Repensando la confianza como factor crítico en la gestión organizativa. Cuadernos de Gestión, 11, 33-47.). Based on the theoretical review, mutual trust tends to establish a positive relationship towards a coopetitive behavior, since it generates a suitable environment to partnering and cooperation among companies.

In all economic sectors, partnering is observed through the establishment of formal organizations, which are economic and political representatives of entrepreneurs. Scholars indicate that, when associations are efficiently managed, they achieve the resource category and generate higher competitive advantages (Cheng et al., 2000Cheng, E. W., Li, H., & Love, P. E. D. (2000). Establishment of critical success factors for construction partnering. Journal of Management in Engineering, 16(2), 84-92.; Della Corte & Aria, 2014Della Corte, V., & Aria, M. (2014). Why strategic networks often fail: Some empirical evidence from the area of Naples. Tourism Management, 45, 3-15.). The combination of knowledge, skills, capital resources and cooperative strategy generates a synergy that opens up new opportunities and creates innovative solutions, so this allows better levels of efficiency than individual actions (Bramwell & Lane, 2000Bramwell, B., & Lane, B. (2000). Tourism collaboration and partnerships: Politics, practice and sustainability (Vol. 2). Bristol: Channel View Publications.). Moreover, when entrepreneurs have awareness of partnering advantages, business associations are more representative. Ganesan (1994Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. The Journal of Marketin, 58(2), 1-19.) considers that, when entrepreneurs perceive associations’ actions as benevolent, a process of trust is established.

The other extreme of coopetition is the competitive context. In this sense, scholars considered the interdependence and complementarity among partners as a favorable condition to coopetition relationships. Interdependence in the interorganizational relationship is studied from the perspectives of business as “human organization” and partnering approaches. From both perspectives, interdependence involves working with others to achieve one’s own goals, as well as the goals of an organization or system (Meyer, 1983Meyer, J. W. (1983). Organizational factors affecting legalization in education. In J. W. Meyer, W. R. Scott (Eds.), Organizational environments: Ritual and rationality (pp. 217-232). San Francisco: Jossey-Bass.). Thus, when partners have a higher perception of the degree of complementary within the business community, the environment is more favorable to coopetition. In this vein, several studies on tourism coopetition underline that tourism businesses complement each other to generate the tourist experience (Della Corte & Sciarelli, 2012Della Corte, V., & Sciarelli, M. (2012). Can coopetition be source of competitive advantage for strategic networks? Corporate Ownership and Control, 10(1), 363-379.; Kylänen & Mariani, 2012Kylanen, M., & Mariani, M. M. (2012). Unpacking the temporal dimension of coopetition in tourism destinations: Evidence from Finnish and Italian theme parks. Anatolia, 23(1), 61-74.; Rispoli & Tamma, 1995Rispoli, M., & Tamma, M. (1995). Le Risposte Strategiche alla Complessità: Le forme di offerta dei prodotti alberghieri. Torino: Giappichelli.).

Porter’s theory is necessary regarding the competition context. Porter’s five forces theory (Porter, 1979Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, 57(2), 137-145) analyzes competitive rivalry, including the threat of substitute products. These forces oblige firms to be alert to ensure their market position. Thus, the entrepreneurial perception on competition has a direct influence on the propensity to coopete (Ritala, 2012Ritala, P. (2012). Coopetition strategy? When is it successful? Empirical evidence on innovation and market performance. British Journal of Management, 23(3), 307-324.). Companies motivated by the desire to protect their market shares can use coopetition strategies to co-opt their main rivals when defending their competitive position and their own interests (Gnyawali & Park, 2009Gnyawali, D. R., & Park, B. J. R. (2009). Co-opetition and technological innovation in small and medium-sized enterprises: A multilevel conceptual model. Journal of Small Business Management, 47(3), 308-330.; Ritala, 2012Ritala, P. (2012). Coopetition strategy? When is it successful? Empirical evidence on innovation and market performance. British Journal of Management, 23(3), 307-324.).

Porter (1974Porter, M. E. (1974). Consumer behavior, retailer power and performance in consumer goods industries. Review of Economics and Statistics, 56(4), 419-436.) thus defines ‘commitment’: the will of an individual or organization to make an effort to obtain an outcome. Most committed partners tend towards their best integration, and balance their behavior to achieve individual and collective goals at the same time (Chin et al., 2008Chin, K. S., Chan, B. L., & Lam, P. K. (2008). Identifying and prioritizing critical success factors for coopetition strategy. Industrial Management & Data Systems, 108(4), 437-454.; Mohr & Spekman, 1994Mohr, J., & Spekman, R. (1994). Characteristics of partnership success: partnership attributes, communication behavior, and conflict resolution techniques. Strategic management Journal, 15(2), 135-152.). Cheng et al. (2000Cheng, E. W., Li, H., & Love, P. E. D. (2000). Establishment of critical success factors for construction partnering. Journal of Management in Engineering, 16(2), 84-92.) suggest that the success of an interorganizational relationship depends on the appropriate management of abilities and on the development of an enabling environment; management skills are considered critical. They hold meetings to carry out constructive discussions, in an open and friendly way, to make sure that participants understand not only their roles in the process of establishing an integrated plan, but also their roles in the implementation and control of this plan. In this line, the recent approach of Strese, Meuer, Flatten and Brettel (2016Strese, S., Meuer, M. W., Flatten, T. C., & Brettel, M. (2016). Organizational antecedents of cross-functional coopetition: The impact of leadership and organizational structure on cross-functional coopetition. Industrial Marketing Management, 53, 42-55.) confirms that participation has a positive relationship with coopetition. According to Narus and Anderson (1987Narus, J. A., & Anderson, J. C. (1987). Distributor contributions to partnerships with manufacturers. Business Horizons, 30(5), 34-42.), successful partnering is marked by coordinated actions aiming at mutual goals. Coordination is related to the boundary definition and to the set of tasks that each partner hopes will be executed by himself and others (Mohr & Spekaman, 1994Mohr, J., & Spekman, R. (1994). Characteristics of partnership success: partnership attributes, communication behavior, and conflict resolution techniques. Strategic management Journal, 15(2), 135-152.).

In the tourism sector, the use of governance or DMO (Destinations Management Organization) is common to manage destinations. Governance is an innovative model of management, different from the traditional way because its structure is composed by involved organizations and the relationships between them, as well as the effective participation of multiple instances of social power (Barbini et al., 2011Barbini, B., Biasone, A., Cacciutto, M., Castellucci, D., Corbo, Y., & Roldán, N. (2011, octubre). Gobernanza y turismo: Análisis del estado del arte. Anales del Simposio Internacional Gobernanza y Cambios Territoriales: experiencias comparadas de migración de amenidad en las Americas, Pucón, Chile, pp. 111-125. Retrieved from http://nulan.mdp.edu.ar/1467/1/01281.pdf
http://nulan.mdp.edu.ar/1467/1/01281.pdf...
). In this line, the study of Chin et al. (2008Chin, K. S., Chan, B. L., & Lam, P. K. (2008). Identifying and prioritizing critical success factors for coopetition strategy. Industrial Management & Data Systems, 108(4), 437-454.) defines, as a successful category for a system coopetition, the commitment of administration. Bengtsson and Kock (2000Bengtsson, M., & Kock, S. (2000). “Coopetition” in business Networks: To cooperate and compete simultaneously. Industrial Marketing Management, 29(5), 411-426.) complement this idea considering that a coopetition system works best when it is managed by an intermediary institution - for example, a business association. Della Lucia, Franch, Martini and Tamma (2007Della Lucia, M., Franch, M., Martini, U., & Tamma, M. (2007). Metodologia della ricerca. In S. Sciarelli (a cura di), Il management dei sistemi turistici locali: Strategie e strumenti per la governance (pp. 3-30). Torino: Giappichelli.) emphasize that a strong coopetition system must have a co-designed product by the networks’ participants.

3 Methodological aspects: sample and analysis method

This is a theoretical and empirical exploratory research. Theoretically, a model that expresses the conditions to partnering based on coopetition with critical variables and measurement scales was proposed. Empirically, research to verify the associative context of the tourism sector in two Brazilian cities through the model proposed was carried out. Thus, methodological steps were as follows:

  1. Literature review to define the baseline model and its measurement scales;

  2. Development and pre-testing of the measuring instrument (survey);

  3. Definition of sampling and fieldwork;

  4. Calculation and analysis of results.

According to these steps, first of all a review of papers published in the Scopus and Web of Science database was carried out, between 1996-2015, in which the word ‘coopetition’ or ‘co-opetition’ was in the title. According to this review, the most frequent variables related to coopetition were extracted and categorized in two dimensions: variables of context, and behavior to partnering based on coopetition (Figure 1). The variables of context expressed the two extremes of coopetition, i.e., cooperation and competition. They are subjective variables defined by entrepreneurial perception.

On the other hand, the model proposed also verifies the intensity of partnering as an indication of success. To this end, objective variables were established to express the formation of networks to joint work in local partnering. Secondly, we defined scales to measure the variables. In Churchill (1979Churchill, G. A., Jr. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64-73.), the creation of measurement scales begins with identifying the dimensions of the constructs that will be analyzed. Thus, a set of key measurements were identified for the purpose of this research. The literature review provided a series of questions used previously by other authors, i.e., they are tested and validated scales. Nevertheless, the choice of authors and their questions (scales) has been taken due to two main reasons: (1) it offers a cross-synthesis of the construct to be measured based on research performed in the interorganizational environment; (2) the work should be published in an indexed scientific journal and the survey was attached to the paper. However, the shortage of scales developed for the tourism sector demanded that we adjust the questions to analyses of the tourism destinations. Next, the scales were adapted to be used in this research. This allowed us to transpose findings from one industry to another. As a rule, the changes in the questions were only carried out to be referred to the analyzed sector, i.e., not changing its form or main approach.

The third step was to develop the survey tool that was composed by 43 questions to express 12 subjective variables of entrepreneurial perception in a 7-point Likert (7 representing ‘totally agree’ and 1 ‘totally disagree’). The survey was previously tested in a small sample with similar characteristics to that of the research universe to its adjustment.

The data was collected personally by a group of six previously trained interviewers. The respondents were 545 entrepreneurs or directors of tourism firms in two Brazilian cities with high tourism competitiveness, but different social and economic contexts, namely: Curitiba and Foz do Iguaçu. In order to ensure the representativeness of the sample, the stratified sampling technique based on the economic activity groups was used. In Brazil, the classification officially adopted by the National Statistical System for types of economic activities presents five groups of firms to the tourism sector: accommodation establishments, food and & beverages, travel agencies, leisure and transport firms. At the same time, the objective variables were obtained through interviews with 26 business associations in the city of Curitiba and 24 in the city of Foz do Iguaçu. As a matter of fact, they are the total universe of tourism associations in these cities. Table 1 shows the technical specifications of empirical work done.

Finally, the results were analyzed. The final score of each variable is an unweighted average of the variable. In turn, the variables are the unweighted averages of the questions that form its scale, i.e., the average of entrepreneurial perception about each question.

Table 1:
Overview of the methodological process in both investigated cities

4 Results: a proposed model and its results for Curitiba and Foz de Iguaçu

This research has twofold results which are presented in this section: (1) a theoretical model (Figure 1) to partnering based on coopetition strategy; (2) the analysis results of the partnering context in the tourism network of the two cities. We used the variables of measurement that are already validated in the literature of partnering and interorganizational studies, considering these variables from the viewpoint of the entrepreneur. Thus, entrepreneurial perception was an indication of the favorable context for partnering and alliances success based on the coopetition strategy.

Figure 1:
Framework of Model Partnering in Coopetition Networks

4.1 The critical context of partnering: variables and scales

This dimension represents the environmental suitable conditions for formation of associative or strategic alliances among firms in a sector. Through a literature review, eight critical variables were selected and grouped in two sets (Figure 2). All of these variables are subjective, so the empirical measurement is based on entrepreneurial perception.

Figure 2:
Subjective variables to verify the critical context of partnering

The top part of Figure 1 shows the first set of variables. This group indicates the cooperative context that leads to partnering. Table 2 explains the variables, the theoretical background of their scale and the questions applied to the sample in the fieldwork.

Table 2:
Cooperative context variables

On the other hand, the bottom of the Figure 1 shows the second set of variables. This group indicates the competitive context that leads or hinders the partnering. Table 3 explains the variables, the theoretical background of its scale and questions applied to the sample.

Table 3:
Competitive context variables

4.2 Critical partnering behavior

This dimension represents the entrepreneurial perception about its behavior towards partnering, as well as, its perception on the effective integrated management in the sector. The theoretical review provided us four variables used in other studies related to success partnering in interorganizational networks (Figure 3).

The four variables that indicate the behavior towards to establish a partnering are presented in the Table 4. Thus, the theoretical background of its scale and the questions applied to the sample are detailed.

Figure 3:
Subjective variables to verify critical partnering behavior

Table 4:
Variables of partnering behavior

4.3 Partnering success

This dimension represents the result which the associative system in the sector has obtained. In particular, it checks the number of entrepreneurial programs to develop the sector performed by interorganizational networks and driven by business associations (Figure 4). They are objective variables obtained from interviews with local business associations.

Figure 4:
Variables to verify the intensity of partnering success

4.3 Results for Curitiba and Foz do Iguaçu

Both analyzed cities are located in southern Brazil. According to the National Monitor, they are among the 10 cities with major tourism competitiveness. Curitiba is a big city with 1,879 million of habitants and a tourist flow of 3,653 million tourists a year. However, in comparison with its population, this is a low tourist density. Foz do Iguaçu, on the other hand, is a small city with 256,088 habitants and 2,574 million of visitants a year, which means a high tourist density, practically 10 tourists per inhabitant. The samples have similar composition rates to the total population in terms of business subsectors in each city. It includes lodging establishments, restaurants, travel agencies, leisure facilities and transport. In Curitiba, the sample has 45.7% of SMEs and, in Foz do Iguaçu, SMEs were 59.7% of the sampling, reflecting local contexts.

Regarding the variables of context which promote interorganizational tourism partnering, the city of Foz do Iguaçu demonstrated superiority in all variables, comparatively to Curitiba, except for the entrepreneurial perception on the level of external competitiveness. Especially, we note that, in Foz do Iguaçu, the perception of shared values between entrepreneurs and associative strength is 50% higher than the levels of perception of these variables among Curitiba’s entrepreneurs. Similar situation occurs in the variable that indicates the perception on complementarity, because in Foz do Iguaçu is 28% higher than Curitiba, in the entrepreneurial context (Table 5).

Meanwhile, the awareness on advantages by partnering and the perception on internal and cross-sectorial competitiveness have presented a smaller difference between the two cities. It was in a level of + 10% in Foz do Iguaçu. However, the entrepreneurs in Foz do Iguaçu have less perception of external competitiveness than Curitiba’s entrepreneurs (Table 5). The results of this factor indicate that Curitiba city is a highly competitive context, but the business network has lower level of common background and shared goals. On the opposite, Foz do Iguaçu is a context of lower competitiveness, but with high perception of shared interests and common values among entrepreneurs.

On the other hand, variables that verify the behavior towards partnering in Foz do Iguaçu are above Curitiba’s. Those questions indicate that the local entrepreneurs support and act on the formation of interorganizational networks much more intensively than in Curitiba. The planning and management of the tourism sector in Foz do Iguaçu is perceived as integrated, according to entrepreneurs. This perception is 40% higher than in Curitiba city. Meanwhile, the perception of entrepreneurs about their own cooperation in partnering showed low difference between the two cities (Table 5). In other words, it was observed that the entrepreneurs in Curitiba perceived the cooperative environment lower than the competition context; while in Foz do Iguaçu, the entrepreneurs feel higher atmosphere of cooperation than competition context (Table 5).

Table 5:
Results variables of framework of partnering in coopetition networks

This difference of cooperative and competitive contexts between the two cities has generated a high variance in the results of interorganizational partnering. The number of business organizations is practically equal (24 associations in Foz do Iguaçu and 26 associations in Curitiba), however, Foz do Iguaçu has 121% more business programs in interorganizational networks than Curitiba (507 programs in Foz do Iguaçu to 137 in Curitiba, see Table 5). Many of these programs are directed to innovation and co-marketing. The superiority of partnering in Foz de Iguaçu is prominent when we look at the total of programs. Although in some cases the city has less programs, such as cooperation programs between the public and private sector (-12%) and programs of tourism co-creation of value. In the last case, Curitiba has five programs, while Foz de Iguaçu has none.

5 Conclusions and implications

The main objective of this research was to identify the critical variables of the context and behavior to partnering, as well as, to reveal the indicators of partnering intensity regarding to the interorganizational coopetition networks. The second objective was to implement an empirical research to apply the model proposed. This research was conducted in two cities in southern Brazil which have a similar degree of competitiveness in the tourism sector, although their corporate networks are very distinct. A Likert scale of 7-points was used in the sets of questions already validated by previous studies developed in interorganizational contexts. It was noted that entrepreneurs in both cities were critical as regards their own participation in the partnering system (behavioral variables), and they also were critical regarding the local environment (context variables). In the two cities, they have low perception on integrated management of the sector.

Overall results show high entrepreneurial perception in Foz do Iguaçu on shared values, complementarity and mutual trust. This context leads firms to establish common goals easier than Curitiba, this results a more intensity of business programs in Foz do Iguaçu. These findings confirm the theoretical basis about factors as moderating, mediating or inducers of coopetition previously determined by Ritala (2012Ritala, P. (2012). Coopetition strategy? When is it successful? Empirical evidence on innovation and market performance. British Journal of Management, 23(3), 307-324.), Le Roy et al. (2016Le Roy, F., Robert, M., & Lasch, F. (2016). Choosing the best partner for product innovation: Talking to the enemy or to a friend? International Studies of Management & Organization, 46(2-3), 136-158.) and others. Moreover, it confirms the high perception of interdependence cited as frequent in the tourism sector by Rispoli & Tamma (1995Rispoli, M., & Tamma, M. (1995). Le Risposte Strategiche alla Complessità: Le forme di offerta dei prodotti alberghieri. Torino: Giappichelli.); Della Corte & Sciarelli (2012Della Corte, V., & Sciarelli, M. (2012). Can coopetition be source of competitive advantage for strategic networks? Corporate Ownership and Control, 10(1), 363-379.); Kylänen & Mariani (2012Kylanen, M., & Mariani, M. M. (2012). Unpacking the temporal dimension of coopetition in tourism destinations: Evidence from Finnish and Italian theme parks. Anatolia, 23(1), 61-74.) and others. Indeed, this feature in Foz do Iguaçu has generated a large number of co-marketing actions. In the tourism industry, the most common use of coopetition are joint actions to promote destinations, because the cooperation between competitors is closely related to strategies to development of the destination as an integral tourism product (Wang & Krakrover, 2008Wang, Y., & Krakover, S. (2008). Destination marketing: competition, cooperation or coopetition? International Journal of Contemporary Hospitality Management, 20(2), 126-141.). In this sense, Foz do Iguaçu presented more co-marketing actions to develop and promote their destination image, showing more accentuated partnering behavior. Innovation programs are in the same situation.

On the contrary of the theoretical and empirical findings of Della Corte and Sciarelli (2012Della Corte, V., & Sciarelli, M. (2012). Can coopetition be source of competitive advantage for strategic networks? Corporate Ownership and Control, 10(1), 363-379.), the lowest perception of external competition, but higher cooperation has generated more established coopetition networks. This finding was verified in Foz do Iguaçu. Nevertheless, the entrepreneurs in Foz do Iguaçu have higher perception on internal and intrasectorial competitive context than entrepreneurs of Curitiba. This generates the market uncertainty forecast by Ritala (2012Ritala, P. (2012). Coopetition strategy? When is it successful? Empirical evidence on innovation and market performance. British Journal of Management, 23(3), 307-324.) as a moderating between coopetition strategy and market performance, in this case, intensity of coopetition programs. Moreover, the relational governance indicated by Bouncken et al. (2016Bouncken, R. B., Clauß, T., & Fredrich, V. (2016). Product innovation through coopetition in alliances: Singular or plural governance? Industrial Marketing Management, 53, 77-90.) as a positive factor to coopetition was verified in Foz do Iguaçu. As well as, the theoretical assumption of Le Roy et al. (2016Le Roy, F., Robert, M., & Lasch, F. (2016). Choosing the best partner for product innovation: Talking to the enemy or to a friend? International Studies of Management & Organization, 46(2-3), 136-158.) about the geographical distance. The entrepreneurial perception on these variables is higher in Foz do Iguaçu.

Two additional comments observed in the work field contribute to analysis of the results. Curitiba is a large city, a state capital, with high population density and the economic and political dynamism of a large Brazilian city. This condition hinders the formation of social ties among entrepreneurs and generates dispersion of associative strength, because partnering is seen much more as a political role than an enterprising function. On the other hand, Foz do Iguaçu is a small city. Thus, the social context of interaction may be acting stronger than the physical-spatial context of the local productive agglomerate (Von Friedrichs Grängsjö, 2003Von Friedrichs Grängsjö, Y. (2003). Destination networking: Co-opetition in peripheral surroundings. International Journal of Physical Distribution & Logistics Management, 33(5), 427-448.). Another comment is that Foz do Iguaçu has a unique and inimitable attraction, the Iguaçu Falls. Based on this distinction, the entrepreneur present lower external competitiveness, but develop mutual trust and common goals easier.

In sum, the main empirical conclusion of this research is that the pressure of external competitiveness acts less on partnering between entrepreneurs than the internal competition in the sector. It was expected that firms seek interorganizational alliances such as partnering to strengthen themselves against external adversity. On the contrary, it was expected less behavior towards partnering when there is a high internal competition among network participants (Luo, 2005Luo, Y. (2005). Toward coopetition within a multinational enterprise: A perspective from foreign subsidiaries. Journal of World Business, 40(1), 71-90.). However, these theoretical assumptions were not verified in the analyzed cases. Despite high internal and intrasectorial competition in Foz do Iguaçu, there are more programs conducted by business associations, so the intensity of partnering is better. Thus, this city’s interorganizational network presents coopetition behavior which generated strategic alliances.

On the other hand, the main theoretical contribution of this study was to provide a model with variables and scales to verify the partnering context in a coopetition strategy. Coopetition is a hybrid behavior that can explain current market relationships, and it represents the interorganizational networks generated by entrepreneurial associations. Thus, this research provides a scale to measure the level of factors that represent the cooperative and competitive context towards coopetition behavior, which can be applied to other industries or sectors.

The main limitation of this research was related to the sectorial level, because it was performed in an industry with a high degree of complementarity and interdependence. However, it was an exploratory research and forerunner of application to a sample of destinations in order to carry out multivariate analysis. There are few analyses published on coopetition in the tourism destinations’ context, so the literature review and theoretical validation of variables used in this study was also a limitation. However, at the same time, it was an opportunity to offer an academic contribution. We recommend, as further research, to check the behavior of these variables in other industries as well as performing statistical exercises to determine the weights of each variable on the outcome of partnering.

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  • 7
    Evaluation process: Double Blind Review
  • Supporting agencies: Capes Foundation - Ministry of Education, Brazil, through process n. 0387-14/2

Contribution of each author:

Publication Dates

  • Publication in this collection
    Apr-Jun 2017

History

  • Received
    12 June 2016
  • Accepted
    05 Jan 2017
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