Sources and management of tension in co-opetition case evidence from telecommunications satellites manufacturing in Europe

Co-opetition is filled with tension due to inherent contradictory and opposing forces. In this research, we develop a multi-level conceptual framework that helps to understand key drivers of tension in co-opetition and key approaches to managing the tension. We combine literature-based conceptual arguments and insights from in-depth study of one exemplar case of co-opetition between Astrium (EADS group) and Thales Alenia Space (Thales group) within the sector of telecommunications satellites manufacturing in Europe. Our findings highlight multiple sources of co-opetitive tension at different levels. Further, our research shows that a mixed organization based on both separation and integration of competition and cooperation is helpful to understand and effectively manage tension in co-opetition. This paper offers case-based rich insights on the sources and management of tension and has important implications for the design and conduct of future empirical research. •Three levels of coopetitive tensions are highlighted: inter-organizational, intra-organizational and inter-individual•Multiple sources of coopetitive tensions are investigated and characterized at each level•Empirical evidence to the implementation of the separation principle to efficiently manage coopetition at the three levels•Empirical evidence to the implementation of the integration principle to efficiently manage coopetition at the three levels•Effective management of co-opetition is about being able to effectively combine simultaneously both separation and integration principles