My friend, the enemy: Developing a model for coopetition in the professional services sector

Abstract

Coopetition, merging elements of cooperation and competition, has transitioned into a dynamic system characterized by mutual, and frequently reinforcing interactions, necessitating a more systematic consideration where companies must embrace openness. Despite the potential benefits, existing research lacks a comprehensive perspective into the application of a coopetitive strategy within professional service firms, with many of these efforts falling short of achieving their expected outcomes. Professional service firms face persistent and long-term coopetition configurations, leading to tensions and paradoxes that demand a holistic and systematic approach. To address this issue, the study employs a multi-case theory-building approach, analyzing a sample of efficiency and success polar types from eight professional services organizations. We propose a comprehensive dynamic coopetition lifecycle model that reveals coopetition-specific motivations, management activities, and conflicts inherent in professional services. This model highlights the unique conditions and tensions in the professional service sector, such as regulatory compliance, human capital reliance, confidentiality, and technology integration, that necessitate such an approach. This paper advances the discourse on resource and capability constraints in service research by introducing a dynamic coopetition lifecycle model. We clarify the conditions under which coopetition can prosper, its complexities, and offer actionable insights for professional services.