Harnessing Coopetition for Competitive Advantage: A Cluster-Based Analysis

Abstract

This paper investigates the phenomenon of coopetition within the context of a large cluster of companies in the furniture industry. Coopetition, a strategic approach where competing firms collaborate to achieve mutual benefits, is explored through a two-stage analysis to understand its dynamics and potential within this industrial cluster. In the first stage, the study defines the general characteristics of the coopetition potential within the cluster. This analysis is grounded in the authors’ previous research and employs the Cygler methodology to assess the extent to which companies in the cluster are poised for coopetitive interactions. This methodological approach provides a comprehensive overview of the cluster’s overall readiness and potential for engaging in coopetition, highlighting key factors that influence these dynamics. The second stage of the analysis adopts a case study approach, focusing on three companies within the cluster that vary in terms of market position and asset potential. These case studies offer a detailed examination of how different types of companies within the same cluster engage in coopetitive relationships. By assessing these companies individually, the study identifies distinct patterns and categories of coopetition that can be practically applied in business strategies. The findings of the study demonstrate that at the level of the furniture production cluster, individual companies can be classified into different categories based on their coopetitive interactions. These classifications are particularly useful for understanding how businesses can innovate and optimize their coopetition strategies to enhance competitive advantage and foster mutual growth. Overall, this research contributes to a deeper understanding of coopetition in industrial clusters, offering valuable insights into how companies can effectively navigate and leverage coopetitive relationships. The study’s findings have practical implications for business leaders and policymakers looking to foster innovation and collaboration within clustered industries.