Coopetition in a merger process: Regulators and management of coopetitive tensions

Abstract

Coopetitive tensions can arise as strategic decisions are imposed on firms that challenge them to pursue competition and collaboration with other organizations. Regulators—such as the state—can interfere in merger strategies. Using a longitudinal case study, the objective of the study is: (1) to analyze which regulators influence coopetitive tensions in a merger process (including negotiation and integration stages); and (2) to explore how coopetitive tensions are coped with during the process. We found that the state and customers have architectural roles as regulators during the process (negotiation period, deal, and integration process). We explore coopetition paradox management at different levels (interorganizational, organizational, and individual levels) over the merger process.

Points for practitioners

Our study sheds light on tensions experienced by managers with conflicting identities at the beginning of the integration and on the way they coped with such tensions. Indeed, our study shed lights on the integration principle as managers were able to transcend the paradox in their decisions and actions implemented at the organizational level through reorganizing the organization and favoring tandem teams and joint piloting.