The role of co-opetition within the context of environmental sustainability: a system dynamics based causal loop diagram (CLD) approach

Nalebuff and Brandenburger (1996) introduced the concept of 'co-opetition’ as a dynamic framework that intricately blends cooperation and competition within relational dynamics. Grounded in game theory principles, they posited that co-opetition manifests as a collaborative alliance among diverse entities in a value network, encompassing suppliers, distributors, subcontractors, complementors, and even competitors. Furthermore, in this context, it is noteworthy that numerous firms may share environmental objectives, such as promoting clean energy and acting on climate issues. In such cases, one would anticipate these firms to cultivate shared supporting cultures. Notably, energy saving policies integrated with sustainable innovation, green supply chains and green product via coopetition are now crucial regarding progress towards UN Sustainable Development Goals. Even though many researchers deeply investigated economic, and managerial aspects of co-opetition, the environmental sustainability analysis still remains a gap in the literature. Our objective is, thus, to conceptualize the environmental dynamics of co-opetition through the utilization of a system dynamic-based causal loop diagram approach through an in-depth literature review study. This study also introduces a causal loop diagram depicting the co-opetition dynamics associated with environmental sustainability. The novelty of our research resides in the absence of any prior studies that integrate co-opetition dynamics to enhance environmental sustainability strategies within the existing literature. Our study serves to illustrate coopetition dynamics, elucidating the methodology for generating environmental value within companies engaged in coopetition strategy.