Coopetition and Small Firms Value Creation

Abstract

Small firms are faced with the challenges of competing with larger firms. This has given birth to utilising different strategies to enhance the small firms’ capacity to achieve their corporate goals. This study examines the nature of coopetition among small firms and how it has influenced their ability to create value. Employing the survey research design, the study sampled 1119 small firms and established the interaction between coopetition and value creation in small firms using the partial least square-structural equation model. The results reveal entrepreneurial orientation is the most prevalent type of coopetition among small firms and that coopetition is a significant driver of value creation among small firms. The study recommends that small firms should integrate coopetition into their strategy to remain relevant, increase their revenue, customise their services through value-added services and create new products and services.