Co-opetition strategies in new product research and development

Purpose Against the backdrop of globalization and intensifying market competition, enterprises are increasingly relying on external technological solutions to overcome technical barriers and achieve new product development. This study aims to reveal how enterprises can balance internal innovation with external collaboration in the context of co-opetitive supply chains, thereby elucidating optimal strategy choices under different market conditions. Design/methodology/approach This study develops a dynamic game model that integrates R&D and production decisions to investigate the interactions among the parties. The model involves three entities: an original equipment manufacturer (OEM), a competitive manufacturer (CM) and a non-competitive manufacturer (NCM). This study conducts comparative analyses of both monopoly and competition market structures, and further investigates how the CM’s market entry affects the OEM’s strategic decisions. Findings (i) The OEM possessing strong technological capabilities typically opts for internal development; with moderate technological capabilities, it chooses between CM development and in-house development; when technological competence is weak, it considers CM development or NCM development. (ii) The CM does not invariably benefit from its own quality improvement or the OEM’s quality decline. (iii) The entry of relatively lower-quality CM can significantly increase the technology transfer fee and improve the R&D level. Originality/value This study develops a comprehensive co-opetitive supply chain model, which delves into the multiple factors influencing the choice of development strategies, thereby enriching existing research. In addition, it offers a novel perspective for the analysis and design of such strategies, addressing key issues such as how to effectively set technology transfer fee and determine the R&D level.