Keep your friends close, but your enemies closer: The role of proximity in driving coopetition between small-and-medium-sized enterprises for technological innovation

Abstract

This research employs the proximity framework to understand the factors that drive small-and-medium-sized enterprises (SMEs) to collaborate with their competitors in innovative projects. It investigates how different proximity dimensions, geographical, organizational, social, cognitive, and institutional, shape coopetition among SMEs in constrained developing economies. To fulfill the research objectives, we carried out a qualitative research design based on an embedded single case study (Betronics project) in the Moroccan electrical and electronic industry. Semi-structured interviews served as the primary source for data collection. Secondary data from reports on the project and non-participant observations were also used for data triangulation. The findings show that a high level of social proximity and a medium level of cognitive proximity are the relevant factors directly contributing to the development of coopetitive relationships among SMEs engaged in innovative projects. Conversely, geographical and organizational proximities exhibit an indirect role in fostering coopetition, while institutional proximity appears to impede coopetition establishment among SMEs.