Coopetition between SMEs in a non-high-tech industry: the case of the UK Alpaca Industry

This paper examines coopetition between SMEs in the UK Alpaca industry. It investigates a) the motives behind SMEs’ coopetition b) coopetitive benefits for SMEs and for the market c) the coopetition success’ barriers. Using qualitative methods, we find that i) coopetitive SMEs pursue rent-gaining strategies with reduced financial risk, and are able to improve the market ii) motives relate to financial risk reduction and performance improvement iii) coopetitive SMEs accessed resources, improved quality, enabled economies of scale and knowledge diffusion in the industry iv) lack of trust or overtrusting can limit coopetition’s success v) geographical proximity is important practically or for strategic positioning. The majority of coopetition research focused on large enterprises in technological-intensive industries. We contribute to the understanding of the transferability of coopetition theory outside its traditional context, by bringing evidence of coopetition strategies between SMEs belonging to an alternative, fast growing and highly coopetitive industry.