The Economics of Sustainability Cooperation

Growing uncertainty in the markets spurs competitors to cooperate. While a rich scholarly discourse in management science has addressed the competition-cooperation interplay, the impact on sustainable operations is still an open question. The chapter introduces the economics of sustainability cooperation to narrow the knowledge gap, integrating and conceptualizing an outwards- and inwards-directed organizational perspective. Guided by these perspectives, the chapter theorizes that competitive pressures and a balanced cooperation degree are positively related to sustainable operations. To empirically test the theory, the chapter outlines a case study that covers capacity-sharing partnerships and environmental impacts. The results consistently support the theory, substantiating orthodox viewpoints by policymakers concerning competition law but also contributing to the ongoing green antitrust discourse.