Wilhelm, Miriam (2018-07-01) .

«Managing Coopetition in Supplier Networks – A Paradox Perspective» ,

Journal of Supply Chain Management , vol. 54 , no. 3

Managing Coopetition in Supplier Networks – A Paradox Perspective

MIRIAM WILHELM JORG SYDOW
(Ph.D., Free University Berlin) (Ph.D., Free University Berlin)
Associate Professor of Global Economics and Professor of Management at Free University
Management at University of Groningen Berlin School of Business and Economics.
Google Scholar: Citations 459 Google Scholar: Citations 21164
h-index 7 h-index 63
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IF in 2017: 6.105 Article review presented by:

5 Years IF: 8.026
William de Paula Ferreira

Journal of Supply Chain Management

September 18, 2018
2018, 54(3), 22-41
© 2018 Wiley, Periodicals, Inc.
Montréal - Canada

HEC Montréal Supply Chain Management - 80-518-09

Purpose

To examine competitive tensions that evolve from structural changes in the composition of the network
when buying firms are trying to engage in coopetition (simultaneous cooperation and competition) in
their relations with core suppliers and how they can be successfully managed by supply chain
managers using a paradox perspective.

Research question: 1. How do buying firms manage the paradox of coopetition in their
supplier networks?

2. Which coopetition capabilities does the buying firm need in order to

trigger positive responses from suppliers and avoid negative tension
dynamics?

Variables: Cooperation and competition (coopetition) in buyer-supplier relations

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Literature review

- Collaborative paradigma, network of co-operation firms competing against other supply

chains (Dyer & Hatch, 2006; Dyer & Nobeoka, 2000; Spekman, Kamauff & Myhr, 1998).

- Danger of overembeddedness supply relashions (Villena et al., 2011).

- Coopetition, simultaneous cooperation and competition in supplier networks (Brandenburger,

A. M., & Nalebuff, B. J., 1996; Bengtsson, M., & Kock, S., 2000; Choi & Wu, 2009; Pathak,
Schmoltzi & Wallenburg, 2012, Wu & Johnston, 2014). Perspectives: structural and paradox.

- Value-creation and value-appropriation (Ritala, P., & Tidstrom, A., 2014).

- Paradox theory (Schad et al., 2016) and synergistic approach.

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Research desing and methodology
Unit of analysis: Triadic (buyer and two suppliers).

Methodology: - Inductive-base case study research.

- Comparative case study in 4 major carmakers and their networks of first-tier suppliers
in Germany and Japan.
Sampling technique: theoretical sampling strategy to identify different
carmakers with regard to the different cells of the 2x2 matrix (Figure 1). Followed a
Maximum variance sampling logic and based their selection on major supplier
satisfaction rankings, published yearly by Automotive News and Planning
Perspectives. Supplier firms were identified through recommendations made by the
carmakers, member directories of chambers of commerce, existing contacts, and by
other researchers.

Data collection technique: Semi-structured interviews (total = 58; 45min to 3hs) and document
analysis (internal company documents, existing case studies, articles in business trade media, and
discussions with industry experts such as other researchers and consultants). Conducted with key
informants from Carmakers and first-tier supplier firms. TABLE 1 – List of interviews.

Data analysis techniques: descriptive (draft case study report) and theoretical (encoded data in four steps).

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Results

 Toyota’s approach comes closest to an

acceptance approach to the paradox,
involve the supplier at an early stage
when value creation and keep them at
the stage when value is actually
appropriated and shared.

 BMW and Nissan, are more hybrid and

dynamic in character and thus harder to
assign a particular approach to
regarding managing paradox.

 Volkswagen clearly tries to separate

competitive phases from cooperative
ones in the collaboration with suppliers.

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Results

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Results

Research question 1: How do buying firms manage the paradox of coopetition

in their supplier networks?

Observation 1: Both splitting and acceptance approaches to managing the paradox of

coopetition can be successful in terms of avoiding negative tension
dynamics when coopetition capabilities at the level of the buying
organization are present.

Research question 2: Which coopetition capabilities does the buying firm need in order to trigger
positive responses from suppliers and avoid negative tension dynamics?

Observation 2: When the buying firm has strong evaluative capabilities, it is better able to provide
helpful cost improvement suggestions which, in turn, increases the potential for
joint value creation through the creation of supplier (competence) trust.

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Evaluation

Barratt, M., Choi, T. Y., & Li, M. (2011). Qualitative case studies in operations
management: Trends, research outcomes, and future research implications.
Journal of Operations Management, 29, 329–342

1. Was the reasoning for using a case research method provided? If so, how well was the reasoning? Yes, clear explained.
2. Was the unit of analysis explicitly stated? Not clearly stated
Was the research grounded in existing theory or phenomenon? Yes
3. How did the researcher(s) decide on which case(s) to choose? “Theoretical”—Cases(s) were selected for theoretical purposes.
4. Number of cases How many cases were examined in the research? four
5. Was there more than one source of data used to validate the research findings? Yes, Semi-structured interviews and
document analysis
6. How were the research results presented? “Within & Cross-case”—Both within and cross-case analyses were provided

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Evaluation

 They should have explicitly specified the meaning of the

acronym RFQ in the text, at page 28, or should have added
a legend in Figure 2.
o Exemple: Request For Quotation (RFQ)

 The first wave of data collection took place between 2007

and 2008, while the second wave of data collection took
place between 2011 and 2016 (6 yers). A more detailed
description of the sampling of the last should be provided.

 In page 33 the authors mention the leadership of Toyota

and its major suppliers in terms of profit ratio in the period
from 2003 to 2014, some additional information could be
provided from 2015-2018. Since it can sugest other
fenomenas.
 Orthographic error on page 24 “(b)oth of the...”

Your ultimate checklist for reviewing a paper

HEC Montréal Supply Chain Management - 80-518-09

Comments

 The article is relevant , multiple case studies in major global carmakers and strategic suppliers.

 It is not very difficult to read, scholars and management oriented.

 It seems that the data and the research questions were formulated based of the data. The cases selection also
suggest that.

 There is a hight probability that the data collected in the first wave, which took place between 2007 and
2008, were used in other study, and it should have been mentioned.

 They did not discuss ethical issues, the conclusions and statements can have impact on suppliers or the
interviewers. Specially that in the second wave of data collection, they interviewed only one Purchase
Manager (PM) at BMW and NISSAN, witch can be easily identified.

HEC Montréal Supply Chain Management - 80-518-09