How to manage free riders in a network of competitors: the case of animal genetic selection industry in France

Abstract

Setting up a network is considered as a key factor for the success of a small and medium enterprise (SME) to innovate and to create value through innovation. Moreover, there are difficulties in setting up such a network in the case of competing companies. Such ‘coopetition’ is based on knowledge transfer and resource sharing. But this kind of partnership may be used in an opportunistic way by some partners. The objective of this paper is to focus on these difficulties in managing a network of competing SMEs in order to manage an innovation whilst avoiding opportunistic strategies, using the analysis of the animal genetic selection industry in France.