Internationalizing the coopetition construct: Quadratic effects on financial performance under different degrees of export intensity and an export geographical scope

Although coopetition (simultaneous cooperation and competition) is likely to enhance financial performance if effectively managed, earlier investigations have overlooked the complexities of this relationship. Most notably, understanding the impact of moderating factors can help unpack the complexity of the association between coopetition and performance. Therefore, grounded in resource-based theory and the relational view, this current study focuses on the quadratic relationship between coopetition and financial performance under different degrees of export intensity and an export geographical scope. Using survey responses from 101 wine producers in New Zealand, the empirical results showed that coopetition has a non-linear (inverted U-shaped) relationship with financial performance. Furthermore, export intensity and an export geographical scope positively moderate this quadratic association. As such, for under-resourced firms with overseas market potential, decision-makers should consider the merits of combining the benefits of coopetition with those from an internationalized business model. This can help them to navigate these potentially paradoxical forces, assuming they engage with trustworthy and complementary rivals in coopetition partnerships.