Boosting Manufacturing Efficiency through Coopetition: A Quantitative Analysis

Small and Medium-sized Enterprises (SMEs) are crucial to Europe's economy, yet they face significant challenges within global supply chains, primarily due to efficiency deficits. Despite their important role in employment, innovation, and wealth generation, these enterprises struggle to compete on a global scale. Recognizing the potential of coopetition - strategic collaboration among competitors - as a means to enhance efficiency, this study explores its impact within the Portuguese Ornamental Stone industry, a critical sector for the national economy. Employing a case study methodology in an IoT-enabled coopetition network, it is documented a substantial improvement in manufacturing efficiency (38.41%), alongside increases in efficiency consistency (20.68%), labor productivity (61.59%), and raw material yield (31.65%). These findings not only validate the efficacy of coopetition in overcoming the efficiency challenges faced by SMEs but also highlight specific areas for further enhancement, such as labor productivity consistency. This research contributes to filling the empirical gap in understanding coopetition's role in SME efficiency and sets the stage for future inquiries into optimizing and expanding coopetition networks. It underscores the necessity for comprehensive strategies to implement coopetition practices, providing a blueprint for SMEs to thrive in the competitive landscape of global digital supply chains.