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Co‐opetition and Technological Innovation in Small and Medium‐Sized Enterprises: A Multilevel Conceptual Model

Small and Medium‐Sized Enterprises (SMEs) face tremendous challenges in their attempt to pursue technological innovations. This paper argues that co‐opetition strategy—simultaneous pursuit of competition and collaboration—helps SMEs to develop their ability to effectively pursue technological innovations. We developed a multilevel conceptual model consisting of factors at the industry, dyadic, and firm level to understand the drivers of co‐opetition and discuss benefits and costs of co‐opetition for SMEs. We believe that this paper will stimulate future conceptual and empirical research on this important topic and has implications for SME managers and policymakers.