Experiencing the paradox of coopetition: A moderated mediation framework explaining the paradoxical tension–performance relationship

In this paper, I investigate how and why experienced paradoxical tension deteriorates coopetitive performance and when such debilitating effects can be managed. More specifically, by drawing on the paradox theory and emotion literature, I suggest that paradoxical tension (i.e., the cognitive difficulty faced by senior managers as they pursue multiple, simultaneous competing demands of coopetition) creates a state of emotional ambivalence, which in turn, contributes negatively to coopetitive performance. I further propose that the negative consequences can be managed through organizational-level mechanisms, namely, emotional capability and balancing capability. The results show a full mediation of emotional ambivalence and a positive influence of balancing capability. Surprisingly, the moderating effect of emotional capability turns out to be negative. However, interestingly, the moderated-mediation result shows that a blend of higher balancing capability and lower emotional capability produces a positive indirect effect of tension on performance. The paper contributes to the research on strategy and organizational paradoxes.