Trajectory of coopetition in artisan innovation: the intertwinement between institutional logics as a thread

Purpose This study argues that the interplay of different institutional logics helps reconcile the tension between competition and cooperation in artisan product innovation. The objective of this study is to examine the pattern of innovation coopetition within the institutionalized context of artisanship. Design/methodology/approach This qualitative study employed in-depth interviews with incumbents and predecessors of artisan businesses. Data collection was divided into 2 waves. The first wave was conducted with incumbents who provided insights into coopetition in innovation, particularly the existing coopetition strategy. The second wave was conducted with predecessors who clarified how coopetition occurred before the incumbents came to power. Findings This study proposes a theoretical framework to explain how coopetition in artisan innovation develops. Within this framework, three types of coopetition in artisan innovation – infant coopetition, unbalanced coopetition and balanced coopetition – are characterized by distinct features under varying conditions. These strategies are sequential and evolve in response to the institutional environment, where logics at different levels interact and collide. The proposed framework reveals that a multifaceted interplay of institutional logics forms the foundational basis for the development of coopetition in artisan product innovation. Research limitations/implications This study has not clearly reflected the insights into the dark side resulting from coopetition. Prior literature suggested that potential risks regarding opportunistic behaviors, leakage of secret knowledge or undesired coopetitive performance may keep firms away from continuing coopetitive partnerships. The question of how coopetition can be sustained in a situation in which the strength of logics changes is still left unanswered. Practical implications This study suggests that artisan business owners should cooperate with competitors in innovation, particularly when the state management creates favorable space for coopetition to occur. Originality/value This research findings revealed that the nature and transformation of coopetition in artisan innovation are contingent on how state logic threads the missing link between cooperation and competition in innovation. Further, the proposed framework offers a novel perspective to explain the mechanism of coopetition in a unique context of artisanship.