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Despite the widely advocated positive impact of coopetition on firms' sustainability performance, there is a lack of research-based explanations for the underlying
mechanism linking these two variables. This study investigates the role of dynamic capabilities and sustainability awareness as mediators and necessary conditions
for the relationship between coopetition and firms' sustainability performance. Drawing on data from the Norwegian fishing industry, our analysis demonstrates a
significant association between coopetition and an increase in dynamic capabilities and sustainability awareness. Additionally, dynamic capabilities and sustain
ability awareness are significantly related to improved firms' sustainability performance. Importantly, the direct effect of coopetition becomes insignificant when
considering the two mediating variables, indicating full mediation by dynamic capabilities and sustainability awareness. Further analysis reveals that these two
factors are also necessary conditions for enhancing firms' sustainability performance. Based on these findings, we provide actionable recommendations to guide
appropriate managerial and policy interventions.
1. Introduction underlying process that explains how a specific variable associated with
coopetition influences an outcome (Gnyawali & Charleton, 2018). Thus,
Coopetition, which refers to collaboration between firms that are we contend that the factors Mirzabeiki et al. (2022) identified do not
simultaneously involved in both cooperation and competition (Bengts constitute a mechanism through which coopetition influences sustain
son & Kock, 2014, p. 182), has recently received attention from both ability. Instead, these factors represent distinct elements of sustain
scholars and practitioners as a potential strategy to achieve sustain ability performance that coopetition can positively affect. Hence, there
ability (Gnyawali & Song, 2016; Mirzabeiki et al., 2022). While recent remains a lack of research-based explanations regarding how coopeti
studies have extensively examined the relationship between coopetition tion influences sustainability performance. Such explanations are
and firms' economic benefits (e.g. Crick & Crick, 2021; Deng et al., 2021; crucial because elaborating on how coopetition generates certain out
Fernandez et al., 2021), there is a notable absence of scholarly insights comes is critical for advancing coopetition theory (Gnyawali & Charle
concerning the underlying mechanism linking coopetition to sustain ton, 2018). Therefore, this study's attempt to unravel the mediating
ability performance (Mirzabeiki et al., 2022). Although coopetition is mechanism between coopetition and firms' sustainability performance
widely advocated for its various positive impacts, the lack of a theory contributes to the literature on sustainability performance and advances
regarding its fundamental properties and their influence on outcomes the literature on coopetition.
hinders progress in coopetition theory (Gnyawali & Charleton, 2018). Before this study, a preliminary qualitative exploration was con
Mirzabeiki et al. (2022) support this assertion in the context of sus ducted. This exploration involved conducting semi-structured in
tainability performance, noting that none of the prior studies have terviews with actors in the Norwegian fishing industry. We chose the
successfully elucidated the mechanisms that enable coopetition to Norwegian fishing industry because its characteristics render it suitable
deliver desirable sustainable outcomes. Intriguingly, Mirzabeiki et al. for examining the dynamics of coopetition (Lindland et al., 2019; Sogn-
(2022) posited that their research identified how coopetition could Grundvåg et al., 2021). The study highlighted the pivotal role of coo
effectively improve sustainability performance. Specifically, their find petition in fostering the development of dynamic capabilities, such as
ings suggest that coopetition can reduce logistics costs and carbon knowledge management, organisational responsiveness, and reflexive
footprints, bolster the competitiveness of the regional economy, and control. Additionally, it was revealed that coopetition enhances actors'
mitigate emissions (Mirzabeiki et al., 2022). sustainability awareness, consequently leading to improved sustain
Nevertheless, it is important to note that a mechanism is an ability performance. Consistent with the extant literature, this
* Corresponding author.
E-mail address: Deodat.E.Mwesiumo@himolde.no (D. Mwesiumo).
https://doi.org/10.1016/j.indmarman.2023.08.008
Received 4 June 2022; Received in revised form 18 July 2023; Accepted 12 August 2023
Available online 17 August 2023
0019-8501/© 2023 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
qualitative study highlights the importance of dynamic capabilities for 2. Literature review and hypotheses development
sustainability performance in a rapidly changing business environment.
For instance, Kumar et al. (2018, p. 99) assert that ‘it is necessary for As highlighted in the introduction, this study proposes dynamic ca
firms to build dynamic capabilities in a dynamic business environment pabilities and sustainability awareness as mediating mechanisms that
to achieve sustainable performance’. Similarly, Gold et al. (2010, p. 230) link coopetition to sustainability performance. Fig. 1 visually depicts
suggested that capabilities evolving from collaboration (e.g. dynamic this conceptualisation and illustrates its four hypotheses. The subse
capabilities) are prerequisites or necessary for implementing sustainable quent subsections present the relevant literature and provide arguments
practices, hence improving firm sustainability performance. Such ca to support these hypotheses.
pabilities are viewed as higher-order constructs because they emerge
through learning as organisations modify their relatively stable collec
2.1. Coopetition and dynamic capabilities - H1
tive routines to fit uncertain environments (Alinaghian et al., 2020;
Aslam et al., 2018; Teece, 2014). Although these assertions are
Dynamic capability theory (DCT) addresses how firms can achieve
appealing, there have been no efforts to verify them empirically.
temporary and long-term competitive advantages in changing business
In addition to dynamic capabilities, firms are encouraged to shift
environments (Beske et al., 2014; Eisenhardt & Martin, 2000; Teece
their mindset to enhance sustainable performance (Crick & Crick, 2021;
et al., 1997). The theory builds on the critique of the resource-based
De Smet, Gao, Henderson and Hundertmark, 2021). In this regard, we
view and challenges the assumption that a firm's business environ
argue that the role of sustainability awareness in linking coopetition to
ment is static and relatively unchanging (Govindan, 2018; Chen &
sustainability performance is plausible because changing mindsets must
Chang, 2013). Thus, it argues that capabilities that give a firm a
involve cultivating and sustaining sustainability awareness within firms.
competitive advantage can become less valuable or disappear in a
Nonetheless, the existing literature has not empirically explored the
rapidly changing environment (Beske, 2012; Govindan, 2018; Teece
effects of coopetition on sustainability awareness and its subsequent
et al., 1997). One reason is that such environments require constant
impact on sustainability performance. This study advances the literature
market assessment and the adoption of best practices and technologies
in three ways. First, we advance coopetition theory by proposing and
(Mishra et al., 2022; Teece et al., 1997). Hence, dynamic capabilities are
empirically testing a mechanism that governs the relationship between
critical for achieving and maintaining a competitive advantage. Such
coopetition and sustainability performance. Second, this is one of the
capabilities represent ‘the firm's ability to purposefully integrate, build,
first studies to explore the role of dynamic capabilities and sustainability
and reconfigure its resource base to respond to rapidly changing envi
awareness as necessary conditions for attaining firm sustainability per
ronment’ (Teece et al., 1997, p.516). They are critical because they help
formance using a recently developed method that combines partial least
firms respond, reconfigure resources, and accomplish strategic goals,
structural equation modelling and necessary condition analysis (Richter
such as optimising sustainability goals and firms' overall performance
et al., 2020). Third, the study offers practical managerial insights rele
(Beske, 2012; Crick & Crick, 2022; Park et al., 2014).
vant to the fishing industry and other industries with similar charac
Dynamic capabilities are essentially higher-order capabilities that
teristics. The remainder of this paper is organised as follows. Section 2
emerge from infinite learning, best practices, and renewing collective
reviews the literature and develops the hypotheses. Section 3 outlines
organisational routines, resources, and assets (Eisenhardt & Martin,
the methods, followed by Section 4, which presents the analysis and
2000; Teece, 2014; Winter, 2003). Notably, Zollo and Winter (2002)
results. Section 5 presents the managerial and theoretical implications of
emphasise that while dynamic capabilities are considered higher-order
the findings. Section 6 summarises the study and identifies limitations
capabilities, firms must consistently engage in learning processes to
and opportunities for further research.
adapt and update them in the face of a rapidly changing environment.
Therefore, as firms actively pursue continuous learning, their dynamic
capabilities increase, which in turn contributes to sustainable perfor
mance (Teece, 2014). However, firms need a good business strategy to
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D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
help them deploy scarce resources and facilitate learning to develop 2.3. Coopetition and sustainability awareness - H3
effective dynamic capabilities and achieve desired goals (e.g. sustain
able performance) (Martin, 2011; Teece et al., 2016). Dyer et al. (2018) In this study, we define sustainability awareness as the degree to
argue that it is worthwhile for firms to invest in a collaborative business which actors understand the concept of sustainability and its relevance.
strategy (e.g. coopetition) that fosters the creation of dynamic capabil Plausibly, sustainability awareness precedes sustainable practices
ities, especially in a rapidly changing environment. because for someone to act on something, they must first become aware
Coopetition manifests when competitors cooperate in some activities of it. For instance, to acquire new customers, marketers implement
and compete in others (Bengtsson & Kock, 2000; Ritala, 2001). Thus, it various tactics to raise customer awareness, leading to the desire and
is a context-dependent strategy based on multiple levels of paradoxical purchase of a product. Collaboration is a potential source of sustain
tensions between competition and cooperation (Monticelli et al., 2023). ability awareness because it is essential for sharing sustainability in
Recent studies (e.g. Crick & Crick, 2022; Dentoni et al., 2016; Mirzabeiki sights (Gold et al., 2010; Press et al., 2014). Conceivably, sustainability
et al., 2022; Song et al., 2016) suggest that coopetition can generate awareness is achieved when sufficient information, experiences, and
dynamic capabilities. This is because coopetition, like other modes of knowledge are widely shared and integrated among collaborators
collaboration, can be a vehicle for organisational learning (Aslam et al., (Gericke et al., 2019; Sarrica et al., 2016).
2020; Teece et al., 1997), helping firms continuously modify their stable Like any other form of collaboration, coopetition serves as a vehicle
collective routines through regular meetings and training (Chauhan for promoting awareness as it reduces information uncertainty (Chau
et al., 2022; Gold et al., 2010; Siems et al., 2021; Zollo & Winter, 2002). han et al., 2022; Wilhelm, 2011). Sharing knowledge and past experi
Similarly, Song et al. (2016) argue that coopetition facilitates parallel ences or actions through coopetition promotes consensus among firms
development and dual sourcing, enabling firms to share knowledge and on pursuing strategic sustainability goals (Crick & Crick, 2022; Dahl
innovation and develop promising technologies that allow firms to mann & Roehrich, 2019). This is because sharing experiences through
capitalise on changes in a rapidly changing environment. They also coopetition leads to the emergence and prevalence of accepted social
highlight that coopetition enables firms to reconfigure their resources norms that govern behaviour (Sarrica et al., 2016). For example, un
and assets by acquiring new relevant knowledge. In summary, coope derstanding the consequences of past generations' fishing practices en
tition can be essential in developing dynamic capabilities that allow ables Norwegian fishing firms to be more conscious of the importance of
firms to effectively navigate rapidly changing environments (Bouncken sustainable fishing practices (Johnsen et al., 2020). Accordingly, we
et al., 2018; Dentoni et al., 2016; Munten et al., 2021). argue that coopetition leads to increased sharing of sustainability-
Consistent with DCT, we anticipate that actors in the fishing industry related information, which should increase sustainability awareness
can leverage coopetition in several ways. For example, they can allow among participants. Therefore, we propose the following hypothesis:
them to improve their traceability and transparency capabilities through
H3. As firms engage in coopetition, their sustainability awareness will
technological diffusion and spread (Seuring et al., 2022; Silva et al.,
likely increase.
2021). It can also help develop common standard guidelines and joint
control mechanisms that allow them to respond to new changes in a
2.4. Sustainability awareness and firm's sustainability performance - H4
constantly changing environment (Aslam et al., 2018; Beske et al., 2014;
Ghadge et al., 2017). Similarly, it can improve firms' ability to change
Sarkis (1995) proposed that firms run by managers or owners lacking
their operations in response to unforeseen events and new opportunities
sustainability awareness would suffer significant declines in profit
(Crick & Crick, 2022; Geyi et al., 2020; Rajaguru & Matanda, 2019).
ability. This contention is credible because consumers are increasingly
Accordingly, we argue that coopetition can help fishing industry actors
concerned with sustainability (Iyer & Kashyap, 2007; White et al.,
develop dynamic capabilities. Therefore, we propose the following
2019). The change in consumers' sustainability awareness directly af
hypothesis:
fects firms' market share and thus reduces their overall profitability
H1. As firms engage in coopetition, their dynamic capabilities will (White et al., 2019). In this study, we argue that sustainability awareness
likely increase. should lead to increased awareness and concern about sustainability.
Huijts, Molin, and Steg (2012) suggest that sustainability consciousness
2.2. Dynamic capabilities and firms' sustainability performance - H2 reduces the magnitude of the perceived risks and costs of adopting
sustainability technologies. As such, firms led by managers or owners
Consistent with Li (2022), we regard a firm's sustainability perfor with strong sustainability consciousness are more inclined to integrate
mance as entailing economic, social, and environmental optimisation. sustainability objectives into their business strategies (Roxas & Coetzer,
Therefore, in this context, dynamic capabilities reflect the ability of 2012). Similarly, Schniederjans and Khalajhedayati (2020) argued that
firms to develop and modify resources and capabilities to achieve sustainability consciousness influences how firms anticipate the conse
favourable economic, social, and environmental outcomes in a rapidly quences of their actions and operations. As such, we argue that firms'
changing environment. The fishing industry is characterised by rapid awareness leads to sustainability consciousness and concern, which, in
market changes, making it an excellent example of a dynamic industry turn, should lead to the implementation of various sustainable practices
(Harun et al., 2022). Rapid changes compel actors to adjust accordingly, and, subsequently, increase sustainability performance. Thus, we pro
such as redesigning organisational processes and reallocating resources pose the following hypothesis:
(Easterby-Smith et al., 2009; Fredrich et al., 2019; Govindan, 2018).
H4. There is a positive association between an increase in firms' sus
This requires firms to constantly evaluate and adjust their resource bases
tainability awareness and an improvement in their sustainability
and collective routines (Dyer et al., 2018; Eisenhardt & Martin, 2000;
performance.
Zollo & Winter, 2002). Considering that sustainability practices require
technology-based innovations (Mishra et al., 2022) and changes in op In sum, we proposed four hypotheses, representing the link between
erations and strategies (Gold et al., 2010; Gruchmann et al., 2019; Siems coopetition and firms' sustainability performance, mediated by dynamic
et al., 2021), and because dynamic capabilities can facilitate such capabilities and sustainability awareness (cf. Fig. 1). Next, we present
changes, we argue that dynamic capabilities are critical for optimising the methods implemented to test these hypotheses.
the three dimensions of sustainability performance. Accordingly, we
propose the following hypothesis:
H2. There is a positive association between firms' dynamic capabilities
and improvement in their sustainability performance.
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D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
Firms' sustainability performance (FSP) is the dependent variable in industry experience (INDUE) as control variables. We included firm size
our model and was operationalised by three pillars of sustainability, because previous studies have argued that it is associated with overall
namely, economic (FSP_E), social (FSP_S), and environmental (FSP_G). profitability and investment in greener production practices (Bouncken
FSP_S was measured using three indicators, whereas FSP_E and FSP_G et al., 2018; Pekovic et al., 2020). We measured this by the number of
were measured using four indicators each. The indicators were based on permanent and temporary employees. We include industry experience
previous studies (e.g. Crick & Crick, 2021; Guo et al., 2014; Kallmuenzer because it is well documented in the extant literature that firms' market
et al., 2021; Kumar et al., 2018; Paulraj et al., 2014). Regarding the share and profitability increase with industry experience. Thus, we as
measurement model, choosing a reflective or formative model is sume that experienced firms might have more resources to engage in
context-dependent (Khan et al., 2016). Some studies consider economic, sustainability practices and increase their sustainability performance.
social, and environmental sustainability to be independent (Kumar We measured experience as the number of years a firm had been in
et al., 2018; Kumar & Rahman, 2016), indicating that they are not business (Crick & Crick, 2021; Westhead et al., 2001). Table 1 presents
interchangeable and, thus, should be measured formatively (Malesios the indicators used to measure the focal and control variables.
et al., 2020). However, other studies see these three pillars as inde
pendent yet interrelated elements sharing a common theme (Carmine &
De Marchi, 2022; Hussain et al., 2016; Morawicki, 2012); therefore, they
should be considered a reflection of sustainability (Kamble et al., 2020). Table 1
From the interviews and extant literature, it was clear that the three Operationalisation of variables.
pillars of sustainability in the fishing industry were interrelated. For
Variable Indicators
instance, the long-term financial survival of a firm in the fishing industry
depends primarily on not endangering the fish species and corals in the COOP1: We collaborate with our competitors to
achieve our common sustainability goals
oceans and protecting society at large (Lindland et al., 2019). Therefore,
COOP2: Active collaboration with our competitors is
this study considers FSP as a second-order construct reflected by the important for our sustainability efforts
economic (FSC_E), environmental (FSC_G), and social (FSC_S) COOP3: We pursue the same sustainability goals as
Coopetition (COOP)
dimensions. our competitors
COOP4: We collaborate with our competitors to
Coopetition (COOP) was the antecedent variable in our conceptual
market our products
model. The operationalisation of coopetition in previous studies is COOP5: We work together with our competitors in
inconclusive because it is operationalised in different ways (e.g. dummy standardising product quality
variables, single-item proxies, and survey-based measures). However, KND1: We frequently conduct internal training
this study used survey-based measures borrowed from previous studies KND2: We gain an advantage by combining our
Knowledge development
business knowledge with our partners' knowledge
(e.g. Bouncken et al., 2018; Crick & Crick, 2021; Paulraj et al., 2014) and (KND)
KND3: We frequently communicate with key
modified them based on insights from semi-structured interviews. business partners
Eventually, five indicators were used to operationalise coopetition. ORGR1: We rapidly respond to market changes
Dynamic Capabilities (DCs) are a mediating variable in our conceptual Organisational
ORGR2: We strongly encourage innovative
behaviour
model. In line with the extant literature [e.g. Alinaghian et al., 2020; responsiveness (ORGR)
ORGR3: We frequently adjust our processes to
Teece, 2007], dynamic capabilities are operationalised as a higher-order capitalise on new opportunities
construct reflected by three first-order components: (1) knowledge REFC1: We have quality control mechanisms across
development (KND), (2) Organisational responsiveness (ORGR), and (3) the country
reflexive control (REFC). Consistent with Beske et al. (2014), we define Reflexive control (REFC) REFC2: We put sustainability labels on our products
REFC3: We have well-functioning food tracking
knowledge development as firms' routines related to assessing current
systems with our strategic partners
and acquiring new industry-related knowledge to identify emerging Sustainability awareness SAW: We are highly aware of sustainability issues in
threats in optimising sustainability goals. Similarly, operational (SAW) our supply chain.
responsiveness is defined as a firm's ability to respond to unforeseen FSP_E1: Our market share has improved in recent
years
changes to seize opportunities and address threats in the business
FSP_E2: Our sales revenues have improved in recent
environment (Aslam et al., 2018; Gruchmann et al., 2019; Mishra et al., Firm's economic performance years
2022). Reflexive control enables actors to continuously assess ongoing (FSP_E) FSP_E3: Our cost-effectiveness has improved in
sustainability requirements and conditions to maintain business func recent years
tionality (Siems et al., 2021). Consistent with previous studies (Beske FSP_E4: Our overall profitability has improved in
recent years
et al., 2014; Jiao et al., 2013; Kumar et al., 2018; Lin & Lei-Yu, 2014;
FSP_S1: The participation of our company in local
Sancha et al., 2016) and considering the context of this study, we community development has improved in recent
operationalised each first-order construct using three reflective years
Firm's social performance
indicators. (FSP_S)
FSP_S2: Our company contribution to community
Sustainability awareness (SAW) was the second mediating variable in health and safety has improved in recent years
FSP_S3: Improving the general welfare of
our conceptual model. This construct was measured using a single item. stakeholders
There has been debate among scholars on the use of single items for the FSP_G1: Our company's reduction in emissions has
measurement of constructs. However, based on their analysis, Bergkvist increased in recent years
and Rossiter (2009) and Bergkvist (2015, 2016) recommend using a FSP_G2: Our material reuse and recycling has
increased in recent years
single item when measuring a concrete singular object and a concrete Firm's environmental
FSP_G3: Our company has improved in terms of
attribute. Similarly, Freed (2013) advocated using single-item measures performance (FSP_G)
marine litter/waste reduction
for sufficiently narrow and unambiguous constructs. Based on the in FSP_G4: Our company has improved in terms of
terviews conducted before the survey, it was apparent that ‘sustain energy saved due to conservation and efficiency
ability’ had become a household word among actors in the Norwegian measures
FSIZE: Categorical variable measured by the number
fishing industry. As such, we considered sustainability awareness to be a Firm size (FSIZE) of employees (Below 50 employees; between 50 and
concrete aspect. Therefore, we measured it using a ‘global’ single-item 500; above 500)
question that gauged the management's awareness of sustainability is INDUE: categorical variable measured by the
sues related to their supply chains. Industry experience (INDUE) number of years the firm has been in business (less
than seven years; more than seven years)
Control variables. This study introduced firm size (FSIZE) and
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D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
3.4. Data collection 21.17% of the total variance, below the conservative threshold of 50%
(Podsakoff et al., 2003). The item loadings for the factors were also
Two practitioners pre-screened the questionnaire to determine significant, so it can be concluded that common method bias was not a
whether the questions were relevant and clear (Podsakoff et al., 2012). problem in this study.
Their feedback and input were then incorporated into the final version
of the questionnaire. Subsequently, a list of Norwegian fishing firms was 4. Analysis
drawn from the Norwegian Seafood Council. The list contains 297 firms.
Since the population size was rather small, we sent the questionnaire to The analysis in this study was conducted using partial least squares
all participants. The questionnaire was prepared and distributed using structural equation modelling (PLS-SEM), followed by necessary con
Nettskjema, a tool for designing and conducting online surveys devel dition analysis (NCA). PLS-SEM was selected for three reasons. First, our
oped and operated by the University of Oslo. In addition to having the model includes higher-order constructs, which can be analysed more
most common features for creating and managing online surveys, we effectively using PLS-SEM (Hair et al., 2013; Henseler et al., 2009;
preferred Nettskjema because it is specifically designed to meet Nor Richter et al., 2016; Sarstedt et al., 2020). Second, our model includes
wegian privacy requirements. Data were collected from January to mediation effects, and according to Sarstedt et al. (2020), such models
March 2022. To increase the response rate, three waves of emails were should be analysed using composite-based SEM methods such as PLS-
sent two weeks apart. Eventually, 97 usable responses were received, SEM to overcome the limitations of both regression- and factor-based
representing a response rate of 32.7%. This response rate is close to the SEM analyses. The analysis deployed SmartPLS 3 version 3.7 (Ringle
reported average email survey response rate, which is approximately et al., 2015), the leading PLS-SEM software. Third, Hair et al. (2019)
30% (Lindemann, 2021). suggest that PLS-SEM should be applied when a study requires latent
In the past, researchers used rules of thumb, such as having a mini variable scores for follow-up analyses, such as the NCA conducted in this
mum sample size of 200 (Kline, 2011) or one that is greater than ten study.
times the maximum number of inner or outer model links pointing at
any latent variable in the model (Hair et al., 2011). However, more 4.1. Measurement model assessment
rigorous methods have been developed to determine an adequate sam
ple size. Following Hair Jr et al. (2022), we applied the inverse square This study's model consists of two higher-order constructs (HOCs):
root method (Kock & Hadaya, 2018) to determine a sufficient sample dynamic capabilities (DCs) and firms' sustainability performance (FSP).
size to attain 80% statistical power. Based on the initial analysis of the Since all HOCs and their corresponding lower-order constructs (LOCs)
first 50 responses, the minimum path coefficient was 0.256, indicating are measured reflectively, a reflective-reflective model is applied using
that at least 94 observations were required to avoid a type 2 error. As the repeated indicators approach (Becker et al., 2012). That is, all items
such, the sample of 97 observations used in our final analysis is of the reflective LOCs are simultaneously assigned to the reflective
adequate. Among the respondents, 69 firms had fewer than 50 em measurement model of the HOC (Hair Jr et al., 2017; Lohmöller, 1989).
ployees, 22 had between 50 and 500 employees, and only six had >500 The measurement model was assessed for internal consistency reli
employees. This distribution is consistent with the insights obtained ability, convergent validity, and discriminant validity.
from the interviews and previous studies (e.g. Sogn-Grundvåg et al.,
2021), which indicate that small and medium-sized firms mainly 4.1.1. Reliability and convergent validity of LOCs
dominate the Norwegian fishing industry. Therefore, it is reasonable to Internal consistency reliability was assessed using a novel and more
conclude that the sample used in this study was representative. effective measure (rho_A) instead of the traditional Cronbach's alpha
(Henseler et al., 2014). To establish reliability and convergent validity,
the loading of rho_A values and average variance extracted (AVE) should
3.5. Assessing non-response bias and common method variance
be higher than 0.7 and 0.5, respectively (Hair Jr et al., 2022). In addi
tion, the indicator loadings should be at least 0.7. The reliability and
We conducted a paired-sample test to compare the responses of the
convergent validity results for LOCs are presented in Table 3, along with
first and last 25% of the respondents (24 each). No significant difference
the items' factor loadings. We find support for the LOCs because all
was found between the two groups (p > 0.05), suggesting that the study
values of rho_A and AVE are within the recommended thresholds (Sar
did not suffer from non-response bias (Table 2). The assessment of po
stedt et al., 2019). As for indicator loadings, all meet the recommended
tential common method bias in survey studies should not be ignored,
thresholds except COOP5 (0.635), KND3 (0.681), and REFC2 (0.698).
especially when data are collected from a single respondent per firm
Hair Jr et al. (2022) suggest that researchers can retain indicators with
(Cao & Zhang, 2011; Podsakoff et al., 2003). Clear and concise surveys
lower loadings to ensure content validity of the construct as long as they
can help reduce the risk of common method bias (Podsakoff et al., 2012;
are between 0.4 and 0.7, and their inclusion does not lower internal
Siemsen et al., 2010). With this in mind, the survey took approximately
consistency reliability and convergent validity below the recommended
seven to ten minutes to complete and was worded in clear and under
thresholds. Therefore, we retained these indicators.
standable language to avoid ambiguity in questions and minimise
respondent fatigue. Additionally, the analysis of Harman's single-factor
4.1.2. Discriminant validity of LOCs
test conducted on the dataset revealed that a single factor explained only
Discriminant validity assesses whether a model's individual con
structs are empirically distinguishable. We used the heterotrait-
Table 2
monotrait ratio of correlations (HTMT) to check discriminant validity,
Assessing non-response bias by paired sample t-test of the latent variables.
as recommended by Hair Jr et al. (2022). The recommended threshold
Variables Mean scores of the first 24 Mean scores of the last 24 P(T ≤t) for establishing it is that HTMT ratio values should be below 0.85 for
responses responses two-tail
conceptually different constructs and 0.90 for conceptually similar
COOP 4.757 4.403 0.432 constructs (Hair Jr et al., 2022). The discriminant validity of the con
REFC 5.875 5.479 0.151
structs in this study was established because all HTMT values were
SAW 5.958 6.049 0.675
KND 5.750 5.802 0.837 below the recommended thresholds (see Table 4).
CONSC 5.833 5.917 0.799
FSP-G 4.813 4.823 0.975 4.1.3. Assessing internal consistency reliability of HOCs
FSP-S 5.567 5.400 0.603 We followed established guidelines for assessing the reliability and
FSP-E 5.146 5.333 0.598
validity of HOCs (Hair Jr et al., 2017; Henseler et al., 2015; Sarstedt
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Table 3
Loadings, reliability, and validity for LOCs.
Indicator Mean Std. dev Loadings Cronbach's Alpha rho_A Composite reliability AVE
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D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
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D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
Table 8
The bottleneck analysis.
Effect size Bottleneck
FSP 0 10 20 30 40 50 60 70 80 90 100
Notes: The effect size is based on ceiling envelopment–free disposal hull ceiling (CE-FDH). Significance testing was performed using 10,000 permutations (***sig
nificant at p < 0.01).
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D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
a valuable means of fostering dynamic capabilities and enhancing sus and enhancing overall competitiveness and sustainability.
tainability awareness, particularly for small and medium-sized firms.
Through coopetition, such firms can amplify their understanding of 6. Closing remarks
sustainability issues and consolidate their efforts and resources to
cultivate their dynamic capabilities. Thus, we strongly advocate that This study examined dynamic capabilities and sustainability
owners and managers of small- and medium-sized firms that have not awareness as the underlying mechanisms in the relationship between
yet adopted a coopetition strategy or those that do not actively practice coopetition and firms' sustainability performance, drawing on the Nor
it should embrace and increase their engagement. Importantly, coope wegian fishing industry as a research context. This industry was deemed
tition should focus on increasing awareness of sustainability and appropriate because of its rapidly changing business environment,
building capabilities such as technological solutions, responsiveness, characterised by fluctuating consumer preferences, evolving technolo
and knowledge development. To this end, coopetition actors should gies, and changing laws and regulations. The study developed and tested
collaborate and share resources to increase resource utilisation effi four hypotheses, and the results confirmed that dynamic capabilities and
ciency. Likewise, member firms should collectively explore innovative sustainability awareness mediate coopetition and firms' sustainability
solutions and adopt sustainable technologies to enhance their environ performance. Furthermore, we found that dynamic capabilities and
mental performance. sustainability awareness are mandatory for increasing firms' sustain
Second, although this study revealed that coopetition positively ability performance.
impacts firms' sustainability performance by increasing their dynamic Although our study contributes to the literature on the relationship
capabilities and sustainability awareness, it is crucial to note that these between coopetition and sustainability performance, it is important to
factors can also arise from other sources. Hence, we argue that, in acknowledge its limitations. As a result, we identified several potential
addition to coopetition, managers should consider implementing other avenues for future research that warrant exploration. First, the analysis
interventions that foster dynamic capabilities and sustainability was based on cross-sectional data, making it challenging to uncover
awareness. For example, Chen and Lee (2009) suggest that firms can changes over time. Future studies could conduct longitudinal research to
develop dynamic capabilities by engaging in repetitive practices and explore the evolution of coopetition among actors. Second, this study
learning from their own experiences, codifying such experiences, and did not consider the potential moderating effect of environmental
promoting their managers' ability to integrate and recombine knowledge dynamism on the relationship between dynamic capabilities and sus
to create new valuable competencies. Similarly, providing education tainability performance. Thus, future studies can examine the contin
and training programs to employees and management can augment gent role of business environment dynamism.
awareness of sustainability issues and encourage sustainable practices Third, the analysis was based on only one industry in one country,
(Saeed et al., 2019). Such internal programs could include training on making it challenging to generalise the findings to other food industries.
topics such as energy efficiency, circular economy, waste reduction, and Thus, future studies could replicate this study in different contexts.
sustainable sourcing. Additionally, since the study only focused on coopetition as a driver of
Third, we recommend that policymakers aspiring to enhance sus dynamic capabilities and sustainability awareness, future studies may
tainability performance should strongly consider the promotion of empirically explore other sources of dynamic capabilities and sustain
coopetition among industry actors. Our findings demonstrate the posi ability awareness in fishing and other food industries. Finally, the study
tive impact of coopetition on firms' sustainability performance through provides empirical evidence that lower-order capabilities, such as
the development of dynamic capabilities and sustainability awareness. knowledge development, organisational responsiveness, and reflexive
However, implementing coopetition poses various challenges, including control, help organisations develop dynamic capabilities. However, the
additional financial and time costs, loss of control, opportunism, and development of dynamic capabilities is expensive. Future studies could
profit-sharing problems (Morris et al., 2007). Policymakers can offer examine the interaction among these lower-order capabilities to explore
financial incentives, such as grants or subsidies, to encourage firms to the importance and role of each in improving sustainability perfor
engage in coopetition. These incentives can help offset the costs asso mance. This will provide managers with insights into which lower-order
ciated with collaboration and encourage firms to explore opportunities capabilities should be prioritised.
for cooperation. Considering the significant role of sustainability
awareness and dynamic capabilities, joint activities should focus on Funding
enhancing these two aspects. For instance, policymakers can create
platforms or networks that facilitate knowledge-sharing and collabora This study was funded by the EC-Asia Research Network on Inte
tion among firms. These platforms allow firms to exchange information, gration of Global and Local Agri-Food Supply Chains Towards Sustain
best practices, and resources, fostering a cooperative environment. able Food Security Project (Grant number: 777742 — GOLF — H2020-
Policymakers can also establish regulations and policies that simul MSCA-RISE-2017).
taneously encourage collaboration and competition, for example, by
developing legal frameworks that enable firms to engage in cooperative Data availability
activities without violating antitrust laws. In addition, they can support
industry-specific initiatives that promote coopetition. This can involve Data will be made available on request.
funding R&D projects focused on collaborative innovation, sustainabil
ity, or resource sharing within a particular industry. Equally important is Acknowledgement
that they encourage firms to form strategic partnerships and alliances by
highlighting the benefits of coopetition. This can be achieved through We extend our gratitude to the two anonymous reviewers whose
awareness campaigns, case studies, and success stories that highlight the expertise and thorough assessment have been invaluable in shaping our
positive outcomes of collaborative efforts. In sum, policymakers can paper. We appreciate their thoughtful suggestions and
create an enabling environment that supports and promotes coopetition recommendations.
among firms by implementing these measures, fostering collaboration,
120
D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
“…We invite our competitors and have a three-day program together…”(Director, Case D)
“in this group, instead of each actor sitting on their own knowledge network, we try to combine the knowledge we have’
(Manager, Case A).
Coopetition contributing to knowledge
development
“…we try to say that instead of sitting on one island here in one island there, (..) we try to meet and going over the bridge
and think together. (..) I think it's the knowledge that each part has, and we try to combine them to get better together…”
(Manager, Case A)
“… this helps us to promote, secure access to the market, and also be our information channel both media and
information” (Director, NFAS)
Quotes
“…it's kind of a customer wants something produced in a specific way and our firm cannot meet this specific demand,
Coopetition contributing to then you need to reach to another vessel (coopetitor)….” (Manager, Case A)
Findings organisational responsiveness
“…we see in some respects that we are able to change the way we work to face the crisis together and we share the
knowledge to do that….” (Manager, Case D)
Quotes
“We have a shared system where we can go back from minute to minute and know where the boats have been and where
they have been catching. And when they are putting out or shooting the line, as we call it or pulling it, we will know
Coopetition contributing to reflexive
where it was when it was and all these details. So, all the fish we take onboard is traced, and then it's put on a label.”
control
(Director, Case D)
“…we have made or worked together to make standard guidelines of what you need to do on board to comply with
sustainability requirement ….” (Manager, Case A)
Quotes
“We are very (conscious) on sustainability for what we're doing, how we operate, how we operate our vessels, how we
Coopetition contributing to catch the fish. So, we talk a lot about sustainability in our business network”. (Manager, Case A).
sustainability awareness
“….and that is why we say we fish for the future. And we take responsibility for harvesting in a way that will be good for
the future generation. And you can say that this our focus in this group…” (Director, Case B).
where, li and M represent loadings of the LOCs of specific HOCs and M LOCs (i = 1,.…M). The loadings are shown in Fig. 2. Using formula (1) above,
the AVE for DCs is 0.584 (0.7372 + 0.7632 + 0.7912)/3. Similarly, the AVE for FSP is 0.686 (0.8372 + 0.8282 + 0.8192)/3.
Composite reliability (ρc) for HOCs
( ∑M )2
i=1 li
Composite reliability(ρc) = ( ∑ )2 ∑M (2)
M
l
i=1 i + i=1 var(ei )
Where ei stands for measurement error of the low-order constructs (LOCs) i, and var.(ei) represents measurement error variance (computed as 1-l2i ).
1
Harun et al. (2022) reports the study in detail.
121
D. Mwesiumo et al. Industrial Marketing Management 114 (2023) 110–124
KND 1 FSP-E 1
REFC 0.399 1 FSP-G 0.496 1
ORGR 0.362 0.369 1 FSP-S 0.547 0.548 1
Average 0.377 Average 0.530
Therefore:
3 x 0.377
DCs' Cronbach's Alpha = 1+(3− 1).0.377 = 0.644
3 x 0.530
FSP's Cronbach's Alpha = 1+(3− 1).0.530 = 0.772
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