MUTUAL BENEFITS
The Scandinavian Village is a good example of coopetition.
coopetition
a scandinavian specialty? The Scandinavian Outdoor Group unites competitor outdoor companies. It’s a kind of cooperation that’s just right for the times. BY ANNA HENRIKSSON & GABRIEL ARTHUR PHOTO SOFIA KARLSTRÖM
THE CONCEPT OF “coopetition” is a business term that is coming up more and more frequently. In theory, it’s easy to see the advantages. Competing companies identify a number of “pre-competitive” areas and find joint solutions that should benefit all who are involved. This means that the cooperating companies can take on expensive projects, set common standards or establish themselves in new markets. But what is needed to go from vision to action? One person that has studied coopetition in depth is Tatbeeq Raza Ullah, Assistant Professor at the Umeå School of Business, Economics and Statistics in northern Sweden. His main message is that a great deal of trust among the companies is required in order for them to achieve the desired goals. “First, companies need to both trust and distrust each other. Trust generates the willingness to become vulnerable based on the belief that the partner will not behave opportunistically. Simultaneously,
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distrust based on constructive skepticism and watchfulness prompts companies to critically observe the partner's behavior and thus keep them on guard to prevent unpleasant surprises from cropping up.” “Second, companies need to possess a coopetitive mindset that allows them not only to accurately understand why it is beneficial to simultaneously cooperate and compete, but also how to contribute to your own as well as your competitor/partner’s capabilities.”
A Trustful Society
It has often been said that “trust” is typical characteristic for Nordic societies – in terms of commu-
“We found a remarkably high level of trust within the network.” Alex Mugrauer, Umeå University
