Strategic Preconditions of Coopetition in Startups: A Necessity‐Based Analysis

ABSTRACT Confronted with resource limitations, volatile environments, and reliance on entrepreneurial ecosystems, startups exhibit a heightened propensity to employ coopetition strategies. However, there is a lack of understanding of the minimum standards required for a strategic shift to coopetition. Utilizing a strategic change perspective, this study conceptualizes coopetition as a shift from predominantly independent and competition‐oriented behavior toward ecosystem‐based and collaborative strategic action. This study employs a Necessary Condition Analysis ( NCA ) to elucidate the internal (i.e., resource constraints, interdependence, and absorptive capacity) and external (i.e., market, competitive, and institutional) conditions necessary for coopetition among 112 startups (31 technology‐based, 81 non‐technology‐based). The research posits that coopetition is a threshold‐based phenomenon and is constrained by sector‐specific bottlenecks. For technology startups, absorptive capacity is widely regarded as the most critical internal necessity condition. Absorptive capacity refers to the ability to absorb and utilize external knowledge, thereby enabling higher levels of coopetition. For non‐technology startups, absorptive capacity, resource constraints, and institutional pressure emerge as the most salient bottlenecks. This study suggests that coopetition depends on both resource availability and ecosystem legitimacy. In this context, coopetition depends on resource levels as well as the legitimacy of the ecosystem. In both sectors, external factors function as critical threshold conditions. However, external factors are insufficient to compensate for the absence of vital internal factors. This study contributes to the extant strategic change literature by conceptualizing coopetition as a necessity‐based strategic adaptation process rather than a standard strategic choice. Furthermore, this study contributes to the existing body of coopetition literature by establishing the fundamental conditions underpinning the applicability of coopetition and by underscoring the pivotal role of NCA in the analysis of strategic change.