The Interplay of Competition and Cooperation in the Innovation Process Between Established Organizations and Startups

Abstract

This study aims to analyze the dynamic process of coopetition between an established organization and startups to develop innovation. We conducted an exploratory, qualitative study, based on Grounded Theory. The Grounded Theory allows the development of a theory emerging from data that is simultaneously collected and analyzed, determining the categories to observe the core questions. It can be divided into two stages: initial coding (open and axial coding) and focused coding. In the open coding, are defined categories and subcategories that are reviewed in the axial coding to generate more precise explanations? Along with the focused coding, the data organized from initial coding is categorized for an analytical understanding of the phenomena. In the first stage, we conducted eight semi-structured interviews with a homogeneous sample. An interview guide addressing coopetition factors was developed. As a result, we developed a framework from the theoretical background. This framework was evaluated by three executives and professors with experience in coopetition between large corporations and startups. The snowball technique was used to recruit the participants. Our findings reveal that different factors – market increase, strategic alignment, and technological alignment – are associated. We observed that coopetition not only helps in developing new markets but also in understanding the user demands of these markets. Thus, coopetition is an accelerator of innovation, since it allows the identification of the resource complementarity and technological scale gains.