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The Multiple Layers of Coopetition and Their Link with Sales Performance: Insights from Sporting Clubs in New Zealand

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Oceania Entrepreneurship

ABSTRACT

Coopetition involves entrepreneurs collaborating with their competitors. While it has been widely recognised that coopetition should lead to higher-levels of sales performance, the multiple layers of these behaviours remain relatively under-researched, alongside examining how they might impact sales performance. Grounded in resource-based theory, this chapter evaluates the respective relationships between three forms of coopetition (local-level coopetition, national-level coopetition, and organisation-level coopetition) and sales performance. Following 25 semi-structured interviews (to adapt the operationalisations), a multiple regression analysis was “run” using survey responses from 111 small martial arts clubs in New Zealand (after conducting various robustness checks). The results revealed that local-level coopetition and national-level coopetition were positive drivers of sales performance. Yet, no support was found for organisation-level coopetition, with a negative and non-significant path. These results (supplemented with a post-hoc test) signify that coopetition is a collection of entrepreneurial activities where care should be taken if condensing measures into one (uni-dimensional) form. Additionally, the relational themes of the resource-based view are enhanced with clearer evidence regarding the multiple layers of coopetition and their connection with sales performance.

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Notes

  1. 1.

    The multiple layers of the coopetition construct have been investigated in earlier studies, but focused on activities between organisations’ departments, especially larger-sized companies with various functional areas (e.g., Ranganathan et al., 2018; Strese et al., 2016). As an illustration, Luo et al. (2006) found that “cross-functional coopetition” can lead to higher-levels of business performance (like in terms of customer satisfaction and financial metrics), especially when firms’ owner-managers are able to learn about their markets. Alternatively, despite there being some research on the multiple-levels of coopetition (based on geographic and product-market factors), there are relatively few insights into how the different dimensions of these strategies impact sales performance (see, for example, Felzensztein et al., 2010; Kock et al., 2010; Granata et al., 2018).

  2. 2.

    This chapter is underpinned by resource-based theory (e.g., Barney, 1991; Barney et al., 2011; Priem & Butler, 2001), but draws upon the wider entrepreneurship literature. Specifically, utilising studies positioned at the marketing/entrepreneurship interface that is also termed entrepreneurial marketing (see Morgan et al., 2015; Crick & Crick, 2018; Crick et al., 2020b). The reason being is that coopetition falls under this cross-disciplinary domain because it surrounds decision-makers engaging in innovative, proactive, and risk-taking behaviours used to create value for their customers (see Crick and Crick, 2016a; Crick, 2019b). Indeed, the entrepreneurial marketing literature has been approached in different respects, with various interpretations of these firm-wide actions (Crick & Crick, 2015; Crick et al., 2016; Hansen et al., 2020; Morris et al., 2002).

  3. 3.

    This chapter is part of a wider research project involving smaller-sized Taekwon-Do clubs in New Zealand. However, this dataset with 111 observations, has not been used elsewhere.

  4. 4.

    Before the scale purification process took place, the small amount of missing data were treated via expectation maximisation (see Enders, 2003). This involved replacing the few missing values with the mean for each latent variable (as per Crick, 2018c).

  5. 5.

    There are different ways that the marker variable technique can be employed in multi-variate statistical research (Lindell & Whitney, 2001; Morgan et al., 2015). In this chapter, the informant quality tool was included in the model-testing stage—as an extension of the marker variable technique (similar to Crick & Crick, 2019). This helped the researchers to monitor its impact on sales performance.

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Authors and Affiliations

  1. School of Business and Economics, Loughborough University, Loughborough, UK

    James M. Crick

  2. Telfer School of Management, University of Ottawa, Ottawa, ON, Canada

    Dave Crick

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  1. James M. Crick
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  2. Dave Crick
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Correspondence to James M. Crick .

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  1. La Trobe University, Melbourne, VIC, Australia

    Vanessa Ratten

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Crick, J.M., Crick, D. (2022). The Multiple Layers of Coopetition and Their Link with Sales Performance: Insights from Sporting Clubs in New Zealand. In: Ratten, V. (eds) Oceania Entrepreneurship. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-7341-2_4

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