Managing strategic innovation through coopetition

Abstract

This contribution aims to tackle the link between two new conceptions of strategy, namely coopetition and strategic innovation in an oligopolistic context. Our research question is the following: what is the impact of a strategic innovation driven by a dominant firm on interfirm relations within an oligopoly? In order to discuss this question, we investigate the case of the multiplex movie theatre's introduction to France. This event characterises a strategic innovation carried out individually by one of the dominant firms (Pathe) and going against the collective interests of the oligopoly formed by Gaumont, Pathe and UGC. Among the main results, the study shows that strategic innovation leads dominant firms to be both more cooperative and more competitive. This observation leads us to discuss the case in terms of coopetition.

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