The dynamics of coopetition: A stakeholder view of the German automotive industry

In response to calls for better understanding the dynamics of coopetition, this study aims to develop a framework that explains why the levels of competition and cooperation change over time. The framework adopts the two-continua approach to coopetition and the theoretical concepts of power and stake from the stakeholder literature. Integrating concepts from the coopetition and stakeholder literatures is a promising attempt, which is justified by the fact that stakeholders are in coopetition with the firm. According to our framework the power difference affects the level of competition, and vice versa, whereas common stakes affect the level of cooperation, and vice versa. This was subject to a test with insights from the in-depth analysis of the changing coopetition between the Volkswagen Group and Porsche AG during the period 2001-2012. Our findings explain why an environmental threat on one of the firms shifted the power difference and changed the coopetition first from cooperation-dominant to balanced-strong and then ended it through a full acquisition.