Sleeping with competitors

Abstract

PurposeThe purpose of this paper is to highlight the specific types of coopetition between small and medium-sized craft breweries and related businesses, as well as its drivers and outcomes.Design/methodology/approachQualitative research was carried out using in-depth, semi-structured interviews with 18 different small and medium-sized enterprises (SMEs) combined with site visits and secondary data analysis.FindingsThe results reveal that craft breweries are engaging in coopetition in several different ways. Mutual benefit, trust, commitment, and sympathy are the crucial drivers for coopetition; whereas innovation development, market reach and marketing, as well as firm growth represent the key shared outcomes of coopetition.Research limitations/implicationsThis study suffers from two main limitations, including the focus on coopetition of craft breweries operating in German-speaking countries only and the risk of subjectivity in analysis and interpretation due to the qualitative, explorative nature of the research.Originality/valueThe findings reveal insights into the uniqueness of SMEs – specifically craft brewers – regarding coopetition, which is currently of strong cooperative nature. This study completes prior coopetition knowledge by revealing the importance of coopetition for small, micro and resource-constrained firms operating in dynamic and innovative but traditional (here craft) industries; presenting the cooperation-based type of coopetition as a good competition strategy under fierce competition from large, more established and global business rivals; and identifying sympathy as an important coopetition driver.