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Benefits and barriers to coopetition in pharmaceutical SMEs: managers’ perspective

R. Ernst,Mário Franco

Published 2025 in Journal of Business Strategy

ABSTRACT

Coopetition – cooperation between competitors – has gained prominence as a strategy for small and medium-sized enterprises (SMEs) to enhance their competitive position in the market. This study aims to analyse the viability of coopetition in SMEs in the pharmaceutical sector and, more precisely, identify the main benefits and barriers in the coopetition strategy. To fulfil these objectives, a qualitative methodology was used, via a multiple case study, obtaining information from semi-structured interviews with managers of pharmaceutical SMEs located in a specific inland region of Rio Grande do Sul, Brazil. Based on content analysis, the results of this study obtained indicate that coopetition occurs informally and horizontally in the pharmaceutical SMEs studied. Opting for coopetition is mostly with the intention to ensure customer well-being, and despite the barriers found, such as a lack of trust and opportunism, the benefits are greater and contribute to achieving the main aim of coopetition for the firms analysed. This study promotes reflection among SME managers in general, concerning the decision to cooperate with competitors. This leads to proposing a model, which characterises the coopetition strategy in pharmaceutical SMEs, from the managerial perspective, aiming to encourage establishing coopetitive relations in small companies. This study enhances the existing literature and suggests an innovative model/framework showing the coopetition strategy in pharmaceutical SMEs from the point of view of managers, identifying benefits, barriers, viability and management in this type of business strategy.

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