To investigate how actors engage in the establishing and evolving boundaries in a field through configurational boundary work, this study focuses on two factions within China’s banking industry from early 2000s to 2023. Underpinned by an inductive ethos with an in-depth qualitative analysis, our focus lies in examining the recursive dynamics in configurational boundary work observed between domestic and foreign banks by integrating a coopetition perspective. Our field study is used to develop a theoretical framework in which actors strategically manipulate boundaries. Our findings suggest that this stems from their influential capability on boundaries. They can either span boundaries to enhance competitive advantage or defend boundaries to remain current market share. This boundary work ascertains that competition and collaboration manifest not as discrete strategic behaviors, but rather as a continuum of interactions. The competitive advantage garnered through collaboration instigates a subsequent cycle of competition among groups, further fueling their pursuit of elevated competitive advantage.
