The Substance to Firm Performance in Co-Opetition Relationship. The Role of Trust and Paradoxical Tension

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Iftikhar Ali , Meenakshi , Dr. Samia Jamshed , Dr. Muhammad Waqas


This is broadly acknowledged that firms increasingly involve in co-opetition (i.e. competition and cooperation simultaneously) and achieve the identical advantages and benefits from such relationship. However, there is very few and inadequate knowledge presents when and how intensity of co-opetition leads to the firm performance in long run. The work based on theoretical foundation endorsed the paradoxical tension and trust are very important constructs to increase firm performance in inter-firm relationship. This paper addresses the aforementioned gap by investigating the opposite but beneficial role of paradoxical tension and trust in co-opetition relationship. This paper investigated that trust perform as a prevailing method through which intensity of co-opetition increases performance of firm, while paradoxical tension negatively influences on intensity of co-opetition and firm performance relationship. This study test the hypotheses on a sample of 220 export firms of Pakistan that engaged in co-opetition relationship. Finally, the findings of this paper provide the empirical evidence that paradoxical tension and trust play different but very important role for attaining superior long run performance.

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