image: Shuwei Jiang, University of Vaasa.
Credit: Photo: University of Vaasa.
In an era of geopolitical tensions and fragile supply chains, firms are seeking new ways to remain competitive and resilient. One such approach is coopetition, a strategic relationship in which companies cooperate and compete at the same time to achieve mutual benefit.
The coopetition arrangement is not uncommon in the automotive sector, where rival brands share production lines or jointly develop vehicle models to reduce costs and speed up innovation. Shuwei Jiang’s doctoral dissertation in strategic business development reveals that the same logic applies to European SMEs as well – particularly those aiming to enter the Chinese market.
– Partnering with competitors locally in the target market provides access to existing networks, distribution channels and financing mechanisms. In turn, Chinese firms benefit from advanced technology and global experience, Jiang explains.
A delicate balance of trust and self-protection
Despite its advantages, coopetition also carries some significant risks. The primary tension is self-protection, as companies are hesitant to share their latest technology or trade secrets with a firm that is also a rival. Jiang’s dissertation identifies mechanisms that help firms mitigate these risks, such as cross-shareholding structures that prevent power imbalances.
– When both sides hold a small share in each other’s company, any action that harms the partnership also affects their own interests. This structure encourages long-term commitment and reduces the temptation to act opportunistically, says Jiang.
While coopetition can be complex and occasionally fraught with tension, Jiang’s research concludes that its benefits outweigh the risks when managed carefully. Firms that succeed in balancing collaboration and competition gain access to new resources, innovation opportunities, and market resilience that would be difficult to achieve alone.
– The key lies in recognising coopetition as a long-term strategic choice rather than a temporary alliance of convenience. Coopetition is about sharing enough to create value together while protecting what defines your competitive edge. When this balance is achieved, both partners grow stronger in an increasingly uncertain world, Jiang concludes.
Doctoral dissertation
Jiang, Shuwei (2025) International Coopetitive Business Relationships Between European and Chinese Firms: Opportunities and Challenges. Acta Wasaensia 566. Doctoral dissertation. University of Vaasa.
Further information
Shuwei Jiang was born in China. He moved to Finland in 2002 to study at Savonia University of Applied Sciences and began his professional career in an international business role, working for over ten years in Finland, China and Singapore. Jiang completed a Master’s degree in Strategic Business Development at the University of Vaasa in 2019 and has since continued his doctoral research in the same field.