The effect of coopetition intensity on first mover advantage and imitation in innovation related coopetition: Empirical evidence from UK firms

Abstract

Research in innovation-related coopetition has documented that collaboration between competing firms can be beneficial for firms' innovation performance. However, the role of coopetition as a means of accelerating innovation to achieve a first mover advantage (FMA) is underexplored in empirical coopetition work. The purpose of this study is to introduce a more granular typology of coopetition strategies, including balanced moderate coopetition, and examine quantitatively the relationship between innovation-related coopetition and firms' FMA. Based on an analysis of a large sample of 21,140 observations in the UK over the period 2002–2014, we measure the effect of the presence and intensity of coopetition on FMA and imitation from competitors. We find that the coopetition intensity decreases the propensity of achieving an FMA as well as radical innovation, while propensity to imitate increases with an increase in coopetition intensity. Moreover, there is a linear effect of coopetition intensity on the one hand and FMA and imitation propensity on the other hand. The results hold regardless of the industry. This study informs coopetition research by shedding light on how innovation-related coopetition influence FMA and imitation. Theoretical contributions and managerial implications are discussed.

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