Exclusivity in licensing alliances: using hostages to support technology commercialization

Somaya, Deepak; Kim, Young‐Jun; Vonortas, Nicholas S.

doi:10.1002/smj.883

“…Licensors can restrict the scope of the exclusivity they offer -to specific products or geographies (Somaya et al, 2011) -to mitigate such risks.…”

Section: Formal and Informal Institutionsmentioning

confidence: 99%

Research on Markets for Inventions and Implications for R&D Allocation Strategies

Conti¹,

Gambardella²,

Novelli³

2013

The Academy of Management Annals

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This is the unspecified version of the paper.This version of the publication may differ from the final published version. is, the trade of elements of knowledge which are 'disembodied' from individuals, organizations and products. The aims of this paper are to bring together the various streams of research in this area and discuss their major assumptions and limitations, in order to provide a comprehensive framework for understanding the phenomenon, and identify promising paths for future research. We start our review by identifying the object of market exchange -that is, an invention whose knowledge has been codified and disembodied from individuals, organizations or artifacts. We then identify those factors that enable firms to trade inventions, distinguishing between institutional-, firm-, and industry-level factors. We close our analysis of the extant literature by discussing the implications of markets for inventions for firm behavior and performance. Against this background, we highlight an important avenue for future research. A neglected implication of the development of invention markets is that firms are confronted with a wide variety of technological paths from which to choose, because the opportunity to acquire technologies on the market offers them a greater variety that can their internal R&D departments. However, the streams of research on markets for inventions and on R&D allocation strategies have been surprisingly disconnected so far. Hence, in the final section, we start to establish and explore the link between these literatures, and to identify a research agenda in this domain. Permanent repository link3

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“…Regulatory, normative and cognitive institutional elements already presented in this study formed the category-system, which was the basis of the protocol used for data collection during the interviews, observations and documents. The regulatory elements of the category-system are: alternative suppliers (Williamson, 1985;Hagen and Choe, 1998), hostage (Williamson, 1985;Somaya, Kim and Vonortas, 2010), periodic contract renewal (Williamson, 1985;Bahli and Rivard, 2003), long-term contract (Axelrod, 1984), reputation (Williamson, 1985), pricing model (Lacity and Willcocks, 2001, p. 168) and service level agreement (Cullen and Willcocks, 2003, p. 73); the normative elements are legal norms (Durkheim, 1984) and relational norms (Macneil, 1980); and the cognitive element is the common language (Ge and Voβ, 2009;Khan et al, 2011).…”

Section: Procedures For Data Collection Analysis and Reliabilitymentioning

confidence: 99%

Strategic Partnership Formation in IT Offshore Outsourcing: Institutional Elements for a Banking ERP System Licensing

Roses

¹

2013

JISTEM

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The purpose of this paper is to design a conceptual model of institutional elements for the building of a client-supplier strategic partnership in IT outsourcing, involving an ERP system licensing. This model resulted from a case study in a Brazilian transnational bank, which is one of the 10 largest American banks in terms of assets volume. Qualitative content analysis technique evaluated the data collected from interviews, documents, and observations. The results show the importance of a multidimensional institutional perspective with a set of regulative, normative, and cognitive elements to structure a client-supplier partnership. The data analysis confirmed elements predefined in the theory developed, as well as identified new ones.

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“…For example, exclusivity clauses are especially common when licensees must make technology-specific investments to commercialize the invention they have licensed in. Similarly, when the technology being licensed is at an early stage, the help of the licensor may be more critical for the licensee, so exclusivity can act as a 'hostage' held by the licensee (Somaya, Kim & Vonortas, 2011), restricting the licensor's possibility to license the invention to other parties. Exclusivity restrictions imply some risks for the licensor though, such as the risk that the licensee fails to devote enough resources to ensure its successful commercialization or expropriates the knowledge and develops substitutes.…”

Section: Formal and Informal Institutionsmentioning

confidence: 99%

Research on Markets for Inventions and Implications for R&D Allocation Strategies

Conti

¹

,

Gambardella

²

,

Novelli

³

2013

ANNALS

View full text Add to dashboard Cite

This is the unspecified version of the paper.This version of the publication may differ from the final published version. is, the trade of elements of knowledge which are 'disembodied' from individuals, organizations and products. The aims of this paper are to bring together the various streams of research in this area and discuss their major assumptions and limitations, in order to provide a comprehensive framework for understanding the phenomenon, and identify promising paths for future research. We start our review by identifying the object of market exchange -that is, an invention whose knowledge has been codified and disembodied from individuals, organizations or artifacts. We then identify those factors that enable firms to trade inventions, distinguishing between institutional-, firm-, and industry-level factors. We close our analysis of the extant literature by discussing the implications of markets for inventions for firm behavior and performance. Against this background, we highlight an important avenue for future research. A neglected implication of the development of invention markets is that firms are confronted with a wide variety of technological paths from which to choose, because the opportunity to acquire technologies on the market offers them a greater variety that can their internal R&D departments. However, the streams of research on markets for inventions and on R&D allocation strategies have been surprisingly disconnected so far. Hence, in the final section, we start to establish and explore the link between these literatures, and to identify a research agenda in this domain. Permanent repository link3

show abstract

Exclusivity in licensing alliances: using hostages to support technology commercialization

Cited by 90 publications

References 66 publications

Research on Markets for Inventions and Implications for R&D Allocation Strategies

Research on Markets for Inventions and Implications for R&D Allocation Strategies

Strategic Partnership Formation in IT Offshore Outsourcing: Institutional Elements for a Banking ERP System Licensing

Research on Markets for Inventions and Implications for R&D Allocation Strategies

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