Co-Opetition Symmetry and Firm Performance: A Study of Sports Goods Industry

Abstract

The purpose of this paper is to examine the co-opetition and firm performance relationship through the mediating role of innovation and moderating role of trust”. This is broadly acknowledging that symmetry of co-opetition (i.e., simultaneous competition and cooperation) is achieving core advantage when firms engage in such co-opetitive relationship. Further, it is hypothesized that co-opetition has a positive influence and firm performance. The sector selected for this study is sports goods industry where requirements of co-petition are just not a requirement but also a necessity as small businesses with limited assets need heavy resources to perform internationally. Therefore, required attention was given to the effect of co-opetition on firm performance. The sample size were 415 and survey questionnaires distributed to respondents representing sports goods industry using a simple random sampling technique. The only 361 responses were useable for analysis other 54 questionnaires did not receive or not in condition to use them. The finding of this study indicated that co-opetition through innovation has a significant effect on firm performance. Furthermore, this study also verifies that the influence of trust on co-opetition and performance relationship reveals some important nuances that indicate this relationship either strong or weak. The implication of this study investigation offers that the practitioners and managers contain “optimal level” of coopetition with their competitors, which always increases firm performance. Where as “too little” and “too much” intensity of co-opetition distrust between rivals and ultimately decreases firm performance. “Finally, this study is one of the initial studies that investigating the role of innovation and trust on co-opetition and performance relationship in sports goods industry”.