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The Role of Leadership in Managing Tensions and Ambivalence in a Coopetitive Innovation Strategy. A Case Study from the Insurance Industry

Aliçkaj, Endri
Master thesis
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URI
https://hdl.handle.net/11250/2774915
Date
2021
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  • Master Thesis [4207]
Abstract
In today’s dynamic, competitive, and complex business world, cooperating with your competitor

is increasingly used as a firm-strategy to achieve innovation. However, such a relationship,

known as coopetition, is paradoxical, as it involves firms cooperating and competing at the same

time, creating paradoxical tensions. While prior literature has proposed different approaches to

manage coopetitive relationships, such as juridical and structural solutions, a framework that

explains the role of leadership in managing these tensions in interfirm coopetitive relationships is

missing. To bridge this gap, I carry out an inductive study interviewing leaders in three firms in

the Fintech industry, participating in an insurance industry coopetitive project. Drawing on

grounded theory and temporal mapping, I examine how leaders manage the tension present in

coopetitive relationships and the emotional ambivalence arising from it. The findings

demonstrate the tensions and ambivalence experienced by leaders, represented by different and

dynamic emotional trajectories in each firm. Further, the findings show how leaders throughout

these trajectories manage tensions by engaging in specific leadership functions. This in turn

appears to influence how the leaders perceive the coopetitive relationships as well as innovation

outcome potential. Based on these findings, I propose that leadership plays a significant role in

achieving the desired outcomes of inter-firm competitive relationships. I develop a model that

explains how emotional ambivalence caused by paradoxical tension affects the emotional state of

leaders, and how leaders engage in specific functions aimed at managing such states, which in

turn influences sustaining inter-firm relationships, and ultimately innovation potential. The

findings have theoretical implications for research on organization paradoxes arising from

coopetition, and practical implications for leaders responsible for the success of coopetition

projects.

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