Anti-piracy effectiveness and managerial confidence: Insights from multinationals in China

Yang, Deli; Fryxell, Gerald E.; Sie, Agnes K.Y.

doi:10.1016/j.jwb.2007.11.010

Cited by 47 publications

(41 citation statements)

References 37 publications

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“…For R&D activities in developing countries, the usage of formal protection methods can be ineffective since weak IPR systems restrict effective enforcement of the intellectual property rights. A mix of legal, operational and strategic activities (Yang and Jiang, 2007;Yang et al, 2008) or de-facto strategies which make use of cultural laws in host countries (Keupp et al, 2010) can be more effective against IP infringements. The following explorative study reveals some of these strategies implemented in German firms in China.…”

Section: International Randd Spilloversmentioning

confidence: 99%

Intellectual Property Infringements Due to R&D Abroad? A Comparative Analysis Between Firms with International and Domestic R&D Activities

Schmiele

2010

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10099.pdf Non-technical SummaryBy internationalising R&D activities, firms can improve their chances to respond to local demands and benefit from local knowledge globally. However, differences in culture and the legal system can challenge firms and lead to higher costs. Furthermore R&D activities abroad are often considered to cause IPR infringements, especially in the case of weak intellectual property protection systems. This paper aims at analysing whether firms with international R&D activities are confronted with a higher risk of intellectual property infringements (IPR) than firms with domestic innovation processes only. The paper differentiates between specific types of infringements: the usage of firms' technical inventions, product piracy and copying of corporate names and designs. The analysis is based both on a qualitative explorative study which consists of six interviews, involving five German companies active in China and aGerman legal advisor for intellectual property protection as well as on an empirical study. The empirical study is based on the data of the Mannheimer Innovation Panel (MIP).The explorative study showed that the involved firms disbelieve that R&D activities in China increase the risk of IP infringements, that they all entered the Chinese market with well prepared IP protection and despite the fact that they were all facing IP infringements, these cases turned out to be manageable. The results of the empirical analysis indicate that international innovation activities lead to a higher risk of infringements of technological knowledge. However, firms whose R&D activities are only based in their home countries face an increased risk of product piracy. By differentiating between host countries with weak and strong intellectual property rights, it has been found the effects from both kinds of countries do not vary from each other. A larger scope of innovation processes abroad also causes a higher likelihood of infringements from countries in which the firms innovate abroad.Infringements from countries where the firms do not operate R&D activities are driven by the export intensity of the firm. Das Wichtigste in Kürze AbstractThis paper aims at analysing the risk of intellectual property (IP) infringements by competitors from abroad and in particular whether this risk is higher for international innovating firms. We distinguish three different type...

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Section: International Randd Spilloversmentioning

confidence: 99%

Intellectual Property Infringements Due to R&D Abroad? A Comparative Analysis Between Firms with International and Domestic R&D Activities

Schmiele

2010

SSRN Journal

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“…Others focused on specific aspects of operations in China such as negotiations with Chinese managers (Ghauri & Fang, 2001;Shi, 2001a), accumulating experience and capability building (Gao, Pan, Lu, & Tao, 2008a;Luo, 2002f), local responsiveness and resource commitment (Fryxell, Butler, & Choi, 2004;Luo, 2001bLuo, , 2004, and the management of expatriate and local personnel (Gamble, 2006a, Law, Tse, & Zhou, 2003Peng & Beamish, 2007;Zhang, George, & Chan, 2006). Specific local strategies and tactics have been examined as well, such as local sourcing practices (Brookfield & Liu, 2005), anti-piracy strategy and IP protection (McGaughey, Liesch, & Poulson, 2000;Yang, 2005;Yang, Fryxell, & Sie, 2008), and local environmental protection policy (Child & Tsai, 2005). Luo (2007b) emphasized China's shifting competitive and regulatory environments, and the changes in the dominant strategies adopted by MNEs in China that resulted.…”

Section: Strategic Alliances/networkmentioning

confidence: 99%

A review of foreign business management in China

Yang

Tipton

2010

Asia Pac J Manag

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“…The ubiquitous piracy phenomenon is associated with country environments, supply and demand reciprocity, and corporate factors (Banerjee, 2003;Banerjee et al, 2005;Burke, 1996;Husted, 2000;Marron and Steel, 2000;Ronkainen and GuerreroCusumano, 2001;Shore et al, 2001;Traphagan and Griffith 1998;Yang and Sonmez, 2007;Yang, 2008;270 Deli Yang et al Yang et al, 2008). Economic development, attitudes and understandings derived from cultural origins and legal environments affect people's intentions and behaviours related to piracy.…”

Section: Literature Reviewmentioning

confidence: 99%