When small meets big: Who fears coopetition most?

Coopetition between small- and medium-sized enterprises (SMEs) and large firms (LFs) is increasingly common in innovation-driven industries, yet the risks associated with these asymmetric relationships remain poorly understood. Drawing on a 3-year qualitative study in the French defence industry, we ask how risks differ between SMEs and LFs in coopetition and how these differences shape coopetitive tensions. Our findings reveal qualitatively different risks for these partners. SMEs face structural dependency, knowledge appropriation, constrained value capture and exclusion risks. LFs fear strengthening SMEs as competitors, losing market control and the redeployment of technologies. Coopetition with SMEs also generates internal tensions within LFs. We challenge the assumption that risks are unilaterally borne by SMEs, showing that coopetitive tensions differ in content across partners and that SME–LF coopetition acts as a double-edged trajectory-shaping mechanism that simultaneously enables and constrains entrepreneurial growth.