LAUSR

With the rapid change in technology, cooperative innovation based on data sharing has become an imminent tactic for enterprises to gain competitive advantages. This paper adopted a mixed method approach (case study-modelling-case study) to study firms’ co-opetition behavior based on their data analytics capabilities for innovation. We show that firms favor cooperation among peers with same capabilities, i.e., when each firm’s data level is comparable to their partners. We further establish that data transferability and incentive have high impact on cooperation decisions. Finally, we explain the evolution path of firms’ cooperation decisions and discuss the best options for them to sustain long-term growth and competitiveness. The results provide a basis for firms to decide how best to utilize big data for collaborative innovation, so as to improve customers’ product adoption and reduce costs.