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Managing coopetition in multi-unit organizations: a management-control perspective

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Abstract

This study investigates the management of internal coopetitive tensions among business units (BUs) in multiunit organizations from a management-control perspective. Existing research on internal coopetitive management has acknowledged the role of principles and mechanisms in managing these tensions but has paid less attention to the role of controls. Drawing from the literature on management control, we follow the package perspective, which suggests combining technical and social controls to manage tensions in organizations. The question becomes how a package of technical and social controls can manage coopetitive tensions. This longitudinal case study of a leading French multiunit company in the banking industry therefore (1) provides evidence of coopetitive tensions between two BUs; (2) highlights how a package of controls was used to manage these coopetitive tensions; (3) demonstrates how this package increased competition and generated competitive tensions between the BUs; and (4) describes how a new combination of controls was adapted to manage these additional tensions. These findings thus enrich the coopetition management literature by revealing (1) the essential role of controls in managing internal coopetitive relationships among BUs; (2) the package of controls for effectively managing internal coopetition; and (3) the dynamic interactions between the use of controls and tensions among BUs.

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Notes

  1. Source: Financial Stability Board.

  2. In italics are the questions that were added for the second round of interviews.

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Acknowledgements

This research benefitted from the financial support of LabEx Entrepreneurship (University of Montpellier, France), funded by the French government (LabEx Entreprendre, ANR-10 Labex-11-01).

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Correspondence to Anne-Sophie Fernandez.

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Appendices

Appendix A. Information about the interviewees

Interview n°

Position of the interviewee

Duration

Profile of the interviewee

Period

1

BPCE Administrator

45 min

Male ~ 60 years old

2009–2015

2

CE Administrator

45 min

Male ~ 60 years old

2009–2015

3

BPCE Manager

60 min

Male ~ 50 years old

2009–2015

4

CE Dir Change (key informant)

120 min

Male ~ 50 years old

2009–2015

5

CE Director of Organization

30 min

Male ~ 55 years old

2009–2015

6

BPCE Director

30 min

Male ~ 55 years old

2009–2015

7

CE Director

120 min

Male ~ 55 years old

2009–2015

8

CE Director

60 min

Male ~ 50 years old

2009–2015

9

BPCE Manager

60 min

Male ~ 55 years old

2009–2015

10

CE Manager

60 min

Male ~ 55 years old

2009–2015

11

BPCE IT Manager

60 min

Male ~ 55 years old

2009–2015

12

CE CIO

60 min

Male ~ 55 years old

2009–2015

13

BPCE Commercial Director

60 min

Male ~ 50 years old

2009–2015

14

BP Innovation Manager

45 min

Male ~ 45 years old

2009–2015

15

BPCE Data Manager

45 min

Male ~ 35 years old

2009–2015

16

BP Data Manager

45 min

Male ~ 35 years old

2009–2015

17

BPCE Data Manager

45 min

Male ~ 40 years old

2009–2015

18

BPCE Data Manager

45 min

Male ~ 40 years old

2009–2015

19

CE Project Manager

45 min

Male ~ 35 years old

2009–2015

20

BPCE Manager

45 min

Male ~ 35 years old

2009–2015

21

CE Project Manager

45 min

Male ~ 45 years old

2009–2015

22

CE Sales Manager

45 min

Female ~ 50 years old

2009–2015

23

BPCE Sales Manager project

45 min

Female ~ 50 years old

2009–2015

24

CE Manager

45 min

Male ~ 45 years old

2009–2015

25

CE Project Manager

45 min

Male ~ 45 years old

2009–2015

26

CE Manager

45 min

Male ~ 45 years old

2009–2015

27

CE Security IT manager (key informant)

90 min

Male ~ 45 years old

2009–2015

28

CE Formation IT manager

45 min

Male ~ 45 years old

2009–2015

29

CE Credit Card Manager

45 min

Male ~ 55 years old

2009–2015

30

BPCE IT Manager

45 min

Male ~ 55 years old

2009–2015

31

CE Manager

45 min

Male ~ 55 years old

2009–2015

32

CE Manager

45 min

Male ~ 55 years old

2009–2015

33

BPCE Manager

45 min

Male ~ 55 years old

2009–2015

34

CE Manager

60 min

Male ~ 55 years old

2009–2015

35

BPCE Manager

60 min

Male ~ 55 years old

2009–2015

36

BPCE CIO Manager

45 min

Male ~ 45 years old

2016–2022

37

BP Innovation Director (key informant)

140 min

Male ~ 55 years old

2016–2022

38

BP CEO (key informant)

45 min

Male ~ 55 years old

2016–2022

39

BPCE Director

45 min

Male ~ 55 years old

2016–2022

40

BP Chief Financial Officer

45 min

Female ~ 50 years old

2016–2022

41

CE Steering Manager

45 min

Male ~ 45 years old

2016–2022

42

BPCE Manager

45 min

Male ~ 45 years old

2016–2022

43

BP Marketing manager

45 min

Male ~ 40 years old

2016–2022

44

BP Data Partner

45 min

Male ~ 40 years old

2016–2022

45

CE Artificial Intelligence Project manager

45 min

Male ~ 40 years old

2016–2022

46

BPCE AI Manager

45 min

Male ~ 40 years old

2016–2022

47

BPCE Project Manager

45 min

Male ~ 45 years old

2016–2022

48

CE CRM manager

45 min

Female ~ 45 years old

2016–2022

49

CE Project Manager

45 min

Female ~ 45 years old

2016–2022

50

BP Saving Loan Manager

45 min

Female ~ 45 years old

2016–2022

51

BP Manager

45 min

Male ~ 55 years old

2016–2022

52

BP Project Manager

45 min

Male ~ 45 years old

2016–2022

53

BPCE Sale Director

30 min

Male ~ 45 years old

2016–2022

54

BP Sales Director

30 min

Male ~ 45 years old

2016–2022

55

BP IT Manager (key informant)

30 min

Male ~ 45 years old

2016–2022

56

CE Manager

60 min

Male ~ 55 years old

2016–2022

57

BPCE Manager

40 min

Male ~ 35 years old

2016–2022

Appendix B. The interview guide

Introduction

Presentation of the study (context and objectives)

Introduction to the interviewee

Internal coopetition

Could you describe the relationships between the BUs?

Why and how do the BUs cooperate?

Why and how do the BUs compete? (internally and externally)

Coopetitive tensions between the BUs

Could you share with us your experience of joint activities and/or projects?

What are the objectives? What are the results?

How does each BU contribute to these projects? Why?

How is the value created and distributed among the BUs?

What are the difficulties encountered at the project level?

Do you share information about other projects with the partner team? Why? How?

How is knowledge managed? What do you share or not share? Why? Are there risks associated with knowledge transfer?

Have you experienced some tensions between the BUs? Can you talk more about them (why, how, when?)

How have such tensions been managed? What controls have been used? Who was in charge?

Have you experienced some learning between the BUs? Can you talk more about that (why, how, when?)

Management control to manage the tensions

Can you describe the controls used at the business level and/or at the company level?

How were they designed?

For what purposes were they designed? (i.e., alignment of interests; uncertainty monitoring; information asymmetry; performance evaluationFootnote 2)

Can you describe their implementation/use?

Did you encounter difficulties in their use?

Implications of the use of management control

What do you think about the management controls designed/implemented by the company?

Have you encountered difficulties using management controls designed by the company? How so? Why?

How have you solved these difficulties?

Do you think the controls facilitated the cooperation between the BUs? Why? How?

Do you think the controls facilitated the cooperation with headquarters? Why? How?

Do you think the controls fostered the competition between the BUs? Why How?

What do you think about the effectiveness of the initial controls? Why?

What are the most salient/unintended consequences of the use of these controls?

How did the company and the BUs adapt to these undesirable consequences?

Conclusion

Anything you would like to add?

Any recommendation for other interviews?

Acknowledgments and greetings

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Séran, T., Fernandez, AS. & Chappert, H. Managing coopetition in multi-unit organizations: a management-control perspective. Rev Manag Sci (2023). https://doi.org/10.1007/s11846-023-00697-y

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  • DOI: https://doi.org/10.1007/s11846-023-00697-y

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