Managing Supplier-Related Spillover Risks in a Vertical Coopetition

Management of supplier-related spillover risks is an important concept that helps to identify the gaps in research and development (R&D) and to identify what can be done to achieve the required coopetition. Coopetition can be deemed as a collaboration between competing firms. The achievement of coopetition is not always an easy task as competing firms encourage their R&D teams to innovate around available resources. Additionally, there is the risk of spillover and of information being leaked. This research looked into how three supplier companies (Topform, Decorette, and Intersport) manage supplier-related spillover risks while in a vertical coopetition with Euretco BV. The independent variable for this study was R&D knowledge spill over via Euretco B.V., while the dependent variables included identifying specific supplier-related spillovers that the three firms experience while in while in vertical coopetition with Euretco B.V and risk management practices that suppliers in vertical coopetition use to mitigate against R&D knowledge loss via Euretco B.V. The review of literature showed that malicious practices can lead to increased loss of knowledge and information. The findings of the field research suggest that suppliers acknowledge that they are faced with a potential challenge that is, the increased concern of R&D spillover knowledge caused by direct coopetition. Field research showed that collaboration in vertical coopetition requires regular programs to determine when suppliers need to share knowledge jointly with Euretco BV. The research concluded that supplier companies have different approaches to preventing and mitigating potential knowledge loss through buyers such as Euretco BV.