The new Argonaut: unfolding the role of firm coopetition capability and organizational capital to achieve allocation efficiency

Purpose The goal of this paper is to analyze the impact of organizational capital on firm performance through the lens of firms’ coopetition capability. Design/methodology/approach This study adopted a quantitative method using survey responses of diversified manufacturing organizations to analyze the influence of firm coopetition capability on the relationship between organizational capital and firm performance. However, Mplus software is used for analysis. Findings This study corroborates that in the era of uncertainty (when businesses are struggling to survive), organizational (tangible and intellectual) capital has a potential to enhance firm performance through efficient deployment of resources. Moreover, this can help enhance the resource allocation efficiency (if firms are able to successfully deploy that capital) by managing the coopetition among the business units. Research limitations/implications Despite its idiosyncratic contributions to the resource-based theory of a firm’s literature with a new compositional-based theoretical perspective, the current study’s ability to provide a deep understanding of the phenomenon was restricted by little data availability, and self-reporting methods. Practical implications Potential applications of the current research exist for manufacturing industry managers and policymakers to achieve efficiency through organizational resources. This study provides evidence about the importance of diversified resources for higher firm performance. At the same time, the current study provides a crucial connotation for managements’ coopetition capabilities for successful resource deployment. Originality/value The current study fills out by investigating the influence that organizational capita brings in industrial era 4.0. Moreover, according to researchers’ knowledge, this study is the first to establish and empirically investigate a comprehensive model that includes organizational capital and manager’s coopetition capability using theoretical perspective of resource deployment for achieving efficiency.