Interorganizational Cooperation through Psychological Safety

―A Case Study on Japanese Regional Rice-Wine（Sake）Industry—

Abstract

Competition is typically conceptualized as a market mechanism shaping firmsʼ competitiveness and innovation. However, our understanding of competition remains incomplete, particularly regarding a situation where firms opt for cooperation instead of rivalry. This study explores why some firms collaborate with competitors within the same industry and to identify the factors driving this behavior. Aiming to fill gaps in existing management literature, especially in competitive strategy, this paper adopts the theoretical framework of psychological safety. This concept emphasizes protecting members from negative situations to promote enhanced performance. The research context is the Japanese Regional Rice-Wine（Sake）industry, characterized by regional cooperative networks among breweries. Utilizing qualitative research methods, the findings elucidate the underlying mechanisms prompting firms to collaborate with competitors in a competitive market environment.