Cooperation strategies when leading firms compete with small and medium-sized enterprises in a potentially competitive market

Efficient cooperation, which has become common under rising economic globalization, is leading to new opportunities and challenges for enterprises choosing long-term competition strategies. Sharing resources with competitors is believed to weaken a firm's competitive edge. However, a potentiall...
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Autor*in:	Hengyu Li [verfasserIn] Junwu Chai [verfasserIn] ZhiFeng Qian [verfasserIn] Hong Chen [verfasserIn]

Format:	E-Artikel
Sprache:	Englisch

Erschienen:	2022

Schlagwörter:	Resource sharing Market competition Cooperation strategy Potentially competitive market

Übergeordnetes Werk:	In: Journal of Management Science and Engineering - KeAi Communications Co., Ltd., 2020, 7(2022), 3, Seite 489-509
Übergeordnetes Werk:	volume:7 ; year:2022 ; number:3 ; pages:489-509

Links:	Link aufrufen Link aufrufen Link aufrufen Journal toc

DOI / URN:	10.1016/j.jmse.2022.02.003

Katalog-ID:	DOAJ078877083

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source	In Journal of Management Science and Engineering 7(2022), 3, Seite 489-509 volume:7 year:2022 number:3 pages:489-509
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author	Hengyu Li
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topic	misc T55.4-60.8 misc Resource sharing misc Market competition misc Cooperation strategy misc Potentially competitive market misc Industrial engineering. Management engineering
topic_unstemmed	misc T55.4-60.8 misc Resource sharing misc Market competition misc Cooperation strategy misc Potentially competitive market misc Industrial engineering. Management engineering
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title	Cooperation strategies when leading firms compete with small and medium-sized enterprises in a potentially competitive market
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title_auth	Cooperation strategies when leading firms compete with small and medium-sized enterprises in a potentially competitive market
abstract	Efficient cooperation, which has become common under rising economic globalization, is leading to new opportunities and challenges for enterprises choosing long-term competition strategies. Sharing resources with competitors is believed to weaken a firm's competitive edge. However, a potentially competitive market may change a firm's incentive to share resources strategically with rivals. Consequently, this study investigates two possible cooperation models between leading enterprises and small and medium-sized enterprises (SMEs) to examine the impact of sharing resources on a firm's strategy. This analysis shows that cooperation strategies benefit both the leading firm and the SME under certain conditions. Furthermore, this study demonstrates that the wholesale cooperation strategy is always more detrimental to the environment than the license cooperation strategy. Interestingly, although cooperation can help SMEs develop sustainably in most cases, industries with high resource costs may experience a situation in which SMEs benefit from competition, thus resisting cooperation and harming the leading enterprise. This study highlights the role of a potentially competitive market and provides managerial insights for stakeholders.
abstractGer	Efficient cooperation, which has become common under rising economic globalization, is leading to new opportunities and challenges for enterprises choosing long-term competition strategies. Sharing resources with competitors is believed to weaken a firm's competitive edge. However, a potentially competitive market may change a firm's incentive to share resources strategically with rivals. Consequently, this study investigates two possible cooperation models between leading enterprises and small and medium-sized enterprises (SMEs) to examine the impact of sharing resources on a firm's strategy. This analysis shows that cooperation strategies benefit both the leading firm and the SME under certain conditions. Furthermore, this study demonstrates that the wholesale cooperation strategy is always more detrimental to the environment than the license cooperation strategy. Interestingly, although cooperation can help SMEs develop sustainably in most cases, industries with high resource costs may experience a situation in which SMEs benefit from competition, thus resisting cooperation and harming the leading enterprise. This study highlights the role of a potentially competitive market and provides managerial insights for stakeholders.
abstract_unstemmed	Efficient cooperation, which has become common under rising economic globalization, is leading to new opportunities and challenges for enterprises choosing long-term competition strategies. Sharing resources with competitors is believed to weaken a firm's competitive edge. However, a potentially competitive market may change a firm's incentive to share resources strategically with rivals. Consequently, this study investigates two possible cooperation models between leading enterprises and small and medium-sized enterprises (SMEs) to examine the impact of sharing resources on a firm's strategy. This analysis shows that cooperation strategies benefit both the leading firm and the SME under certain conditions. Furthermore, this study demonstrates that the wholesale cooperation strategy is always more detrimental to the environment than the license cooperation strategy. Interestingly, although cooperation can help SMEs develop sustainably in most cases, industries with high resource costs may experience a situation in which SMEs benefit from competition, thus resisting cooperation and harming the leading enterprise. This study highlights the role of a potentially competitive market and provides managerial insights for stakeholders.
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title_short	Cooperation strategies when leading firms compete with small and medium-sized enterprises in a potentially competitive market
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Cooperation strategies when leading firms compete with small and medium-sized enterprises in a potentially competitive market

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