The Paradox of Cooperation and Competition in Strategic Alliances: Towards a Multi-paradigm Approach.

Abstract Cooperation and competition characterise the interfirm relationships in strategic alliances. This paper proposes a paradox approach to studying cooperation and competition. It explains the paradox perspective and provides an analytic framework for the paradox of cooperation and competition. In the light of the paradoxical nature, it advocates a multi-paradigm approach to cooperative and competitive strategies, which combines strategic positioning, the resource-based view and game theory. The paper suggests that the multi-paradigms can not only …

…reduce foreign dependence for critical inputs and skill. ·<Tab/>Assist short-term corporate restructuring by lowering exist barriers in mature and declining industries.<Tab/>·<Tab/>Alliances serve as experiential platforms to "demature" and transform existing mature industries via new components, technologies or skills to enhance the value of future growth options. <Tab/> Source: Lei (1997).