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"Frenemies" of innovation: understanding the role of coopetition in service innovation in emerging markets.

ABSTRACT: Coopetition is considered an important strategy for innovation. However, the literature provides limited evidence on how coopetition relates to innovation in service sector, particularly in emerging markets. Moreover, little is known about the effects of the formal and informal aspects of coopetition on innovation and how absorptive capacity of firm may influence this relationship. Against this background, using the official national innovation surveys of Nigeria (2008 and 2011), this study contributes to the ongoing debate by empirically examining the innovation endeavors of 421 Nigerian SMEs. The study employs logistic regression methods to model and explore the relationships between coopetition and innovation in the sample. The results show that that formal coopetition hinders innovation while informal coopetition supports it and absorptive capacity moderates these relationships. The study provides important insights about the concept of coopetition in emerging markets, especially vis-à-vis their institutional idiosyncrasies. Finally, the study highlights its implications and suggests some avenues for future research.

SUBMITTER: Hassan SS

PROVIDER: S-EPMC10446029 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature

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"Frenemies" of innovation: understanding the role of coopetition in service innovation in emerging markets.

Hassan Sohaib S SS Egbetokun Abiodun A Bzhalava Levan L

Open research Europe 20220621

Coopetition is considered an important strategy for innovation. However, the literature provides limited evidence on how coopetition relates to innovation in service sector, particularly in emerging markets. Moreover, little is known about the effects of the formal and informal aspects of coopetition on innovation and how absorptive capacity of firm may influence this relationship. Against this background, using the official national innovation surveys of Nigeria (2008 and 2011), this study cont ...[more]

PMID: 37645343

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Project description:The external institutional environment is the foundation for the survival and development of enterprises. Enterprises can only obtain legitimate and heterogeneous resources through continuous strategic reform and institutional innovation to match their internal strategies with the external environment. The paper selected the manufacturing enterprises that implemented service-oriented transformation strategies in China from 2016-2019 as a sample based on the realistic background of frequent institutional changes and overlapping market changes during China's economic transformation. The impact of different aspects of the institutional environment on service-oriented transformation and the moderating role of technological innovation capacity were examined empirically. The results showed that (1) improved government governance greatly facilitates the service-oriented transformation of manufacturing enterprises, which was more pronounced within the industry. The regulated development of the market facilitated service-oriented transformation within the industry in the short term, while the impact on cross-border transformation lagged. The improvement of the legalized business environment was conducive to the transformation of enterprises and promoted intra-industry transformation significantly more than cross-industry transformation. (2) Technological innovation capability strengthened the influence of institutional environment on intra-industry transformation, but had no significant impact on the relationship between institutional environment and cross-border transformation. (3) The moderating effect of technological innovation capability was markedly heterogeneous in terms of property rights and regional heterogeneity. The findings of this study provide an important reference for policy makers to break through the current institutional barriers to transformation and upgrading of the manufacturing industry, and to reshape and optimize the institutional environment for the integration and development of the secondary and tertiary industries.

Dataset Information

"Frenemies" of innovation: understanding the role of coopetition in service innovation in emerging markets.

Publications

"Frenemies" of innovation: understanding the role of coopetition in service innovation in emerging markets.

Similar Datasets

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