Coopetition: How Interorganizational Collaboration Shapes Hospital Innovation in Competitive Environments

Public service innovation is the adoption of new technology and methods of service delivery to improve governance and performance. The public-private dichotomy overlooks the complex way how organizations interact with each other for service delivery. This Element explores how coopetition, namely the simultaneous presence of competition and collaboration, shapes innovation in the health care sector. Analyzing panel data of 4,000+ American hospitals from 2008 to 2017, it finds evidence that coopetition catalyzes technology and service process innovation and offers practical implications on managing innovation in competitive environments.

Format: Paperback / softback
Length: 75 pages
Publication date: 27 May 2021
Publisher: Cambridge University Press

Public service innovation, characterized by the embrace of new technologies and service delivery methods, holds a central place in the realm of public management research. Scholars have long examined public and private sector innovation as distinct phenomena, with private sector innovation primarily driven by the quest to enhance firms' competitive edge. On the other hand, public sector innovation aims to improve governance and performance. However, the traditional public-private dichotomy fails to capture the intricate interplay between organizations in the delivery of public services. Today, public services are increasingly delivered through collaborative networks, where organizations engage in both competition and cooperation simultaneously. This Element delves into the impact of coopetition, the simultaneous presence of competition and collaboration, on innovation within the healthcare sector. By analyzing panel data encompassing over 4,000 American hospitals from 2008 to 2017, this Element uncovers evidence suggesting that coopetition fosters technological and service process innovation. Furthermore, it offers practical insights for managing innovation in competitive environments.

The rise of collaborative networks in public service delivery has transformed the landscape of innovation. Organizations now compete and cooperate simultaneously, leveraging their respective strengths to enhance service quality and efficiency. Coopetition can lead to the sharing of best practices, the pooling of resources, and the acceleration of innovation. In the healthcare sector, coopetition is particularly evident. Hospitals, medical professionals, and healthcare providers engage in a complex web of relationships, forming alliances and partnerships to improve patient care and outcomes. This collaboration extends beyond traditional boundaries, as organizations share data, technologies, and expertise to enhance patient experiences and reduce healthcare costs.

One of the key benefits of coopetition is its ability to drive technological innovation. Hospitals, for example, are constantly seeking new technologies to improve patient care and streamline operations. By engaging in coopetition, they can access a broader range of innovative solutions and collaborate with experts in the field. This collaboration can lead to the development of new medical devices, treatments, and therapies, which can benefit patients and healthcare providers alike.

Coopetition also fosters service process innovation. Hospitals, recognizing the importance of patient satisfaction and loyalty, strive to provide exceptional service experiences. By engaging in coopetition, they can learn from each other's best practices and improve their processes to deliver faster, more efficient, and personalized care. This can lead to improved patient outcomes, reduced wait times, and increased patient satisfaction.

However, coopetition also presents challenges. Organizations may struggle to balance competition and collaboration, as they may prioritize one over the other. Additionally, coopetition can create tensions and conflicts, particularly when organizations compete for scarce resources or market share.

To manage innovation in a coopetition environment, organizations need to develop a strategic approach. They should focus on building strong relationships and partnerships with other organizations, while also maintaining a competitive edge. This can involve collaboration on research and development projects, the sharing of resources and expertise, and the development of shared value propositions.

In conclusion, public service innovation is driven by the adoption of new technologies and methods of service delivery. Coopetition, the simultaneous presence of competition and collaboration, plays a significant role in shaping innovation within the healthcare sector. By leveraging the benefits of coopetition, organizations can drive technological innovation, foster service process innovation, and improve patient outcomes. However, managing innovation in a coopetition environment requires a strategic approach, focusing on building strong relationships, maintaining a competitive edge, and collaborating to create shared value.

Weight: 128g
Dimension: 151 x 227 x 10 (mm)
ISBN-13: 9781108963985