Brewing coopetition: A guide for helping employees cooperate with competitors

Cooperating with competitors can create mutual value, fuel innovation, and overcome common challenges. But, despite leaders’ confidence in its benefits, coopetition may cause tension for employees working with rivals. This tension can hinder employees from adopting the cooperative approach necessary for successful coopetition. In this paper, we examine how identity can support coopetition efforts and offer insights for managers implementing coopetition. We contend that fostering a shared collective identity can help employees view competitors as collaborators, rather than threats, and increase cooperation between competitors. We explain why employee loyalty to the firm is unlikely to foster similar cooperation. Finally, we offer insights into how and when external threats influence cooperation. Specifically, identity may be especially important for coopetition when the risk from external threats seems low, because when it is high, employees may work with rivals regardless of their identity. Moreover, we illustrate practical ways managers can ease the tensions of coopetition: by promoting shared goals, emphasizing common values, and creating opportunities for collaboration within industry segments. With the right approach, businesses can turn competitors into allies and unlock the full potential of coopetition. Executive Summary Firms can create value by cooperating with competitors, but employees often feel tension when working with rivals. This tension can undermine the cooperative behaviors that make coopetition succeed. Drawing on a study of craft brewery employees, we show how identification with a collective that includes both the employees’ and competing firms can foster cooperation. A shared collective identity—but not strong firm identification—helps employees see competitors as collaborators rather than threats, increasing cooperation. Although strong threats to the firm can push employees to cooperate regardless of collective identity, shared identity may foster cooperation with competitors even when threats to the firm seem low. Managers can support coopetition by emphasizing shared goals and values and by creating structured opportunities for cross-firm collaboration.