Title: Managing strategic innovation through coopetition

Authors: Pierre Roy, Said Yami

Addresses: University of Montpellier 1, ISEM, CS 19519, rue Vendemiaire Bat. B, 34 960 Montpellier Cedex 2, France. ' University of Montpellier 1, ISEM, CS 19519, rue Vendemiaire Bat. B, 34 960 Montpellier Cedex 2, France

Abstract: This contribution aims to tackle the link between two new conceptions of strategy, namely coopetition and strategic innovation in an oligopolistic context. Our research question is the following: what is the impact of a strategic innovation driven by a dominant firm on interfirm relations within an oligopoly? In order to discuss this question, we investigate the case of the multiplex movie theatre|s introduction to France. This event characterises a strategic innovation carried out individually by one of the dominant firms (Pathe) and going against the collective interests of the oligopoly formed by Gaumont, Pathe and UGC. Among the main results, the study shows that strategic innovation leads dominant firms to be both more cooperative and more competitive. This observation leads us to discuss the case in terms of coopetition.

Keywords: coopetition; strategic innovation; oligopoly; movie theatres; interfirm relations; multiplexes; film theatres; cinemas; France; cooperation; competition; Gaumont; Pathe; UGC.

DOI: 10.1504/IJESB.2009.024105

International Journal of Entrepreneurship and Small Business, 2009 Vol.8 No.1, pp.61 - 73

Available online: 25 Mar 2009 *

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