Managing Co-opetition for Shared Stakeholder Utility in Dynamic Environments

Abstract

The U.S. health care industry, like many industries, continues to face the need to adapt to new realities stemming from dynamic changes in the external environment. Some nonprofit hospitals have converted to integrated nonprofit/for-profit structures, fostering intra-firm co-opetition, that is, simultaneous cooperation and competition between units. This article examines this phenomenon and provides recommendations regarding controls and incentives that can help administrators actively manage co-opetition and promote shared utility between units. In industries where talent-intensive human capital competes for common resources and revenues, co-opetition can be a strategic tool to navigate competitive forces.