Yu-Ching Chiao, Chun-Ju Huang, Chun-Chien Lin and Tang-Shun Chuang
This study aims to examine conditions in both inter- and intra-alliance contexts within an oligopolistic alliance industry operating across multiple markets. It focuses on how a…
Abstract
Purpose
This study aims to examine conditions in both inter- and intra-alliance contexts within an oligopolistic alliance industry operating across multiple markets. It focuses on how a focal firm’s optimal performance depends on nuanced evaluations of the trade-offs associated with coopetitive synergy, and on decisions about whether to collaborate or compete with its members.
Design/methodology/approach
The authors analyze the six leading global container shipping firms within two major alliances (The Grand Alliance and the New World Alliance) from 2003 to 2010, gathering 7,825 news articles from the Cyber Shipping Guide, a comprehensive global container shipping business database in Japan.
Findings
The findings reveal the following: (1) the focal firm cooperating with members of a rival alliance decreases the level of inter-alliance competition. (2) The focal firm cooperating with members of a rival alliance increases the level of intra-alliance competition. (3) Increased inter-alliance competition negatively impacts the performance of the focal firm. (4) Increased intra-alliance competition negatively impacts the performance of the focal firm.
Practical implications
Global container shipping firms should make optimal decisions about which firms to cooperate with, focusing on those that contribute to the focal firm’s overall synergies and thus performance.
Originality/value
This study contributes to the literature on coopetition in strategic alliances by extending the concept of dynamic coopetition to include strategic alliance groupings, and by examining how focal firm members cooperate in both inter- and intra-alliance contexts.