How collaboration with your rivals works: an example from logistics (1/2)

More and more companies are discovering untapped value potential by engaging industry rivals with a hybrid strategy of cooperation and competition at the same time. For example, Amazon and LinkedIn have welcomed competitors onto their respective platforms. Expansion of their network was its own reward.

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Obviously such alliances require careful management. Adopting two diametrically opposed attitudes – cooperation and competition – toward the same party needs a tricky balance. Participants risk being exploited; if, however, they are too guarded, the intended synergies will not be achieved. Most scholars recommend employment of separation strategies, such as convening two different teams to handle the cooperative and competitive aspects of the relationship.

Logistics Emergency Teams

From 2010 to 2014, researchers from the INSEAD business school studied Logistics Emergency Teams (LET)a group of logistics experts from four leading companies (from the US, the Netherlands, Kuwait and Denmark). These firms are competitors but in LET they work together to help the United Nations in the wake of natural disasters. In 2013, 20 LET experts helped the Philippines with the smooth passage of humanitarian goods.

When disaster strikes, the participating companies must work quickly to deploy the necessary resources. LET personnel in the area usually have almost no contact with their companies and they must improvise to handle any tensions that arise among them. How did the LET function under difficult conditions? Researchers conducted 28 interviews with employees and managers of the four firms and analysed data, notes from working sessions, messages from the CEOs, and also many internal documents. You can read their conclusions in the second part of this article.

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Article source INSEAD Knowledge - INSEAD Business School knowledge portal
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How collaboration with your rivals works: an example from logistics (1/2)

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How collaboration with your rivals works: an example from logistics (2/2)