As proposed by Brandenburger and Nalebuff (1996), the concept of coopetition which highlights the coexistence of both collaborative and competitive forces in interorganizational settings aims to provide a new way of thinking for accelerating the innovation process and generating greater value. However, despite such recognitions, our understanding about how coopetition can help facilitate the innovation process in small and medium enterprises is rather limited. This should warrant a separate stream of research on this issue. Drawing on the concept of effectuation, we will explore the coopetitive innovation process in entrepreneurial firms. Sarasvathy (2001) proposed five principles embedded in the effectuation decision-making process of entrepreneurship. This process starts with a given set of means and controllable goals, followed by interactions with other stakeholders until they are all committed. The final stage leads to the creation of new products and services. The first two stages, means and goals, are the preparation stage in which an entrepreneurial firm distinguishes itself from large established corporations and establishes a base to leverage its contingency according to existing means and acceptable losses. After that, the effectuation process enters into the interaction and commitment stage during which the firm seeks relationships with stakeholders. We argue that the coopetitive forces can appear in the interaction and commitment stages to enlarge and capture value for the entrepreneurial firm involved.