The coopetition paradox and tension: The moderating role of coopetition capability

In this study, we apply a paradox perspective on coopetition to investigate the effects of coopetition paradox on managers' experience and perception of coopetitive tensions, and the role of coopetition capability in managing such tensions. We propose a theoretical model to posit that the intensity of coopetition paradox positively associates with managers' experience of external tension, which in turn lead them to perceive internal tension. Further, coopetition capability plays a dual role-moderates the relation between coopetition paradox and external tension, and reduces internal tension. We tested hypotheses on a representative multi-industry sample of 1532 firms in Sweden and the results confirm them. Our study contributes to understanding the critical role of coopetition capability that enables firms to maintain a moderate level of tension regardless of the intensity of coopetition paradox.