The Model of Competitiveness Assessment of Coopetition Network Systems - Competition and Cooperation of Enterprises in the Global Economy

By Rosinska-Bukowska, Magdalena | Journal of Economics & Management, January 1, 2016 | Go to article overview

The Model of Competitiveness Assessment of Coopetition Network Systems - Competition and Cooperation of Enterprises in the Global Economy


Rosinska-Bukowska, Magdalena, Journal of Economics & Management


Introduction

In the modern economy, simultaneous competition and cooperation has become a requirement for businesses to remain competitive, resulting in the formation of coopetitive network systems. For reliable assessment of competitiveness of businesses operating in such a structure it is necessary to have a new view of organisation's capital. It is of key importance to measure all layers of the network system - both the economic and intellectual capital of coopetitive network systems.

The analytical model presented in this paper is based on J. Bain's threefold system: structure - conduct - performance1. It is assumed that changes in the global economy necessitate concentration of subjects - changing market structures (cooperation). The new structure determines appropriate corporate behaviour - competitive strategy requires the development of networks, including competitors (coopetition). The foundation of effectiveness is the ability to adapt to new requirements, is the creation of added value to the current standard through the use of multi-layer capital coopetitive business networks.

The aim of this paper is to present the concept of the measuring of the creation of added value, using multivariable statistical analysis to take into account the qualitative dimension of building international competitiveness based on available quantitative data. The essence of the presented method is to highlight the impact of all five separate layers of company capital on the effectiveness of coopetitive systems [Rosinska-Bukowska 2012, pp. 104-108]. For this reason, five parameters have been used: profitability index of equity, the cost of research and development per employee, engagement of intangible assets in the value of sales and internationalization indicators of assets and employment. The key is to emphasise the importance of networks2 and the international nature of these systems [Esser et al. 2008, pp. 21-26], which is intended to draw attention to the necessity to combine cooperation and competition in order to meet today's challenges.

1. Coopetition - requirement of the modern development model

Progressive globalisation processes accelerate the liberalization of the movement of production factors. This leads to the rebuilding of organisational businesses systems as a result of the implementation of the modified development strategy. The changes thus promote beings capable of creative cooperation, including the ability to combine cooperation and competition. This favours the formation of various forms of collective bargaining - including coopetitive ones.

The concept of coopetitive global business network is a result of the evolution of company organizational systems. The continuity of interaction between market participants (Actor Bonds), their resource dependence (Resource Ties) and the relations between them related to their activities (Activity Links), i.e. features indicated as essential for networks [Hákansson & Snehota 1995, pp. 24-49] are of paramount importance. A kind of novelty, however, is that these relations currently have a coopetitive nature.

Coopetition is a system of simultaneous streams and interdependent relationships of competition and cooperation between the entities that retain their own organisation [Cygler 2009, p. 19]. Coopetition should be defined as a specific mode of action, allowing for building capacity on the basis of close cooperation between participants combined with competitive struggle. It is a business strategy that uses insights gained from game theory to understand when it is better for competitors to work together. By adopting this perspective enterprises may creating added value for still increasing standard. As a result of progressive globalisation and liberalisation, coopetitive relations develop dynamically, due to the fact that the world market has become almost an open area on which the systematic shortening of flow of not only goods and services, but above all, knowledge and information on a global scale increases rapidly. …

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