Bilateral indirect influence in coopetition triads: A conceptual framework

Research on triadic coopetition largely assumes that a third party must actively intervene to influence a focal dyad's coopetitive dynamics (i.e., the simultaneous cooperative and competitive interactions between firms). This paper challenges this view by exploring a more subtle, pervasive force within these three-actor structures (i.e., coopetition triads): the influence of observing and being observed. We argue that because coopetitive dyads are embedded in networks, they remain under constant scrutiny from influential outside actors, such as existing or potential rivals, customers, or suppliers. We term this the “evaluative gaze”—a mechanism of strategic monitoring where a third party judges a dyad's stability and potential from a distance. We develop a model of bilateral indirect influence to explain how and when this process unfolds. First, the third party engages in vicarious learning , watching the dyad to scout for potential partners or signal its strategic positioning. Second, the focal dyad, aware of this gaze, engages in collective self-regulation , adjusting its behavior to manage its reputation and signal strength. By specifying the conditions under which this influence is most potent, we demonstrate triadic coopetition as a dynamic feedback loop of signaling and adaptation. Our model reveals how firms strategically manage visibility to shape reputation, attract partners, and gain competitive advantage without ever engaging in direct intervention. • Firms often influence one another via indirect observation rather than direct intervention. • Third parties learn by watching, while coopetition dyads adjust behavior to being watched. • Strategic observation reduces risk and helps firms find future partners at low cost. • The ‘evaluative gaze’ of third parties forces dyads to manage their reputation and visibility. • A feedback loop reframes coopetition as a dynamic system of strategic signaling.