Description

The acknowledgement that a network of cooperating companies, e.g. a supply chain, could be more successful in achieving competitive advantage than individual businesses, constitutes one of the most significant paradigm shifts in modern business management as it leaves behind the notion of adversarial companies engaged in fierce competition with one another in order to gain a competitive advantage. The "Survival of the Fittest" in what has been called "The Era of Network Competition" depends on how well companies are able to structure, coordinate, and manage relationships with their business partners. In their search for the best possible place under the sun, companies have redefined their understanding of cooperation and have not only improved the efficiency of cooperation with partners (e.g. suppliers, customers, and complementors) but also discovered the existence of synergies with competitors. The apparently paradoxical situation of cooperating with competitors (or it might be thought of as competing with cooperating partners) shows that collaboration is a widespread approach at all levels of strategic management. In light of these thoughts, the question arises why there are still companies that neither cooperate with business partners nor with competitors; although it seems obvious that this could be advantageous. This work attempts to offer an answer to this question.