Abstract

In contrast to the conventional strategic management research, which emphasizes either cooperation or competition as a beneficial strategy, emerging literature on coopetition has advanced our understanding of how pursuing both cooperation and competition can yield greater benefits. However, the literature offers limited insights into the multi-level dynamics of coopetition and the role of top management teams (TMT) in navigating paradoxical tensions that cascade across levels — tensions that, if not tackled well, can overturn the benefits associated with coopetition. Drawing on the paradox literature, this paper develops a conceptual model to illustrate how the coopetition paradox unfolds across different levels, activating performing, organizing, and belonging tensions, that, in turn, shape the interplay between cooperation and competition at the inter-firm level. A key contribution of this paper is its focus on the central role of TMTs in managing multiple tensions across levels, particularly through the synchronous orchestration of internal processes at the firm level while constantly navigating coopetitive interactions at the inter-firm level.