Coopetition and family-owned wine producers

The purpose of this investigation, underpinned by resource-based theory, involves unpacking the complexity of coopetition activities (interplay between cooperation and competition) among family-owned firms. The methods involve 20 field interviews and statistical analysis of 302 family-owned wine producers in the United States. Principal findings establish the non-linear (inverted U-shaped) nature of the coopetition-performance relationship within family-owned firms. Furthermore, competitive intensity negatively moderated the non-linear relationship between coopetition and company performance and a positive moderation effect existed from a competitor orientation. Additionally, unique insights illustrate the importance of utilising social capital in building relationships with trustworthy and complementary partners within and across clusters to enhance the performance consequences of firms’ product-market strategies; that is, both in their domestic market and internationally. The non-linear coopetition-performance relationship suggests decision-makers should not engage in too little or too much coopetition and have an exit strategy if things do not work out as planned.