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Information Technology and Trademarks: Implications for Product Variety

Author

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  • Guodong (Gordon) Gao

    (Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

  • Lorin M. Hitt

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

Abstract

This paper examines the relationship between information technology (IT) and trademarks. Using an 11-year panel data set (1987-1997) of IT capital stock, trademark holdings, and other measures for 116 Fortune 1000 manufacturing firms, we find that IT contributes to higher trademark holdings. Further, we find evidence suggesting that firms with more IT capital tend to apply for more new trademarks and retire existing trademarks more quickly, leading to a shorter trademark life cycle. Because trademarks are mainly used by firms to communicate differences among similar products to the marketplace, these results suggest that the business value of IT can be realized in greater product variety. This paper was accepted by Barrie Nault, information systems.

Suggested Citation

  • Guodong (Gordon) Gao & Lorin M. Hitt, 2012. "Information Technology and Trademarks: Implications for Product Variety," Management Science, INFORMS, vol. 58(6), pages 1211-1226, June.
    • Handle: RePEc:inm:ormnsc:v:58:y:2012:i:6:p:1211-1226
    DOI: 10.1287/mnsc.1110.1480
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    Cited by:

    1. Bin Yang & Tao Yuan, 2022. "Trademark and IPO underpricing," Financial Management, Financial Management Association International, vol. 51(1), pages 271-296, March.
    2. Chiang, Chung-Yean & Qian, Zhuang & Chuang, Chia-Hung & Tang, Xiao & Chou, Chia-Ching, 2023. "Examining demand and supply-chain antecedents of inventory dynamics: Evidence from automotive industry," International Journal of Production Economics, Elsevier, vol. 259(C).
    3. Dirk Crass & Franz Schwiebacher, 2017. "The importance of trademark protection for product differentiation and innovation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(2), pages 199-220, June.
    4. Marco S. Giarratana & Martina Pasquini & Juan Santaló, 2021. "Leveraging synergies versus resource redeployment: Sales growth and variance in product portfolios of diversified firms," Strategic Management Journal, Wiley Blackwell, vol. 42(12), pages 2245-2272, December.
    5. Bei, Xiaoshu, 2019. "Trademarks, specialized complementary assets, and the external sourcing of innovation," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    6. Po-Hsuan Hsu & Dongmei Li & Qin Li & Siew Hong Teoh & Kevin Tseng, 2022. "Valuation of New Trademarks," Management Science, INFORMS, vol. 68(1), pages 257-279, January.
    7. Stephen Petrie & Mitchell Adams & Ben Mitra‐Kahn & Matthew Johnson & Russell Thomson & Paul Jensen & Alfons Palangkaraya & Elizabeth Webster, 2020. "TM‐Link: An Internationally Linked Trademark Database," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(2), pages 254-269, June.
    8. Zheng Fang & Bin Gu & Xueming Luo & Yunjie Xu, 2015. "Contemporaneous and Delayed Sales Impact of Location-Based Mobile Promotions," Information Systems Research, INFORMS, vol. 26(3), pages 552-564, September.
    9. Adina Bărbulescu Robinson & Kapil R. Tuli & Ajay K. Kohli, 2015. "Does Brand Licensing Increase a Licensor's Shareholder Value?," Management Science, INFORMS, vol. 61(6), pages 1436-1455, June.
    10. Ling Xue & Gautam Ray & Xia Zhao, 2017. "Managerial Incentives and IT Strategic Posture," Information Systems Research, INFORMS, vol. 28(1), pages 180-198, March.
    11. Ikenna Uzuegbunam & Brandon Ofem & Satish Nambisan, 2019. "Do Corporate Investors Affect Entrepreneurs’ IP Portfolio? Entrepreneurial Finance and Intellectual Property in New Firms," Entrepreneurship Theory and Practice, , vol. 43(4), pages 673-696, July.
    12. James D. Dana Jr. & Eugene Orlov Jr., 2014. "Internet Penetration and Capacity Utilization in the US Airline Industry," American Economic Journal: Microeconomics, American Economic Association, vol. 6(4), pages 106-137, November.
    13. Gunasekaran, Angappa & Subramanian, Nachiappan & Papadopoulos, Thanos, 2017. "Information technology for competitive advantage within logistics and supply chains: A review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 14-33.
    14. Gnangnon, Sèna Kimm, 2022. "Effect of the duration of membership in the World Trade Organization on Trademark Applications," EconStor Preprints 253266, ZBW - Leibniz Information Centre for Economics.
    15. Lynn Wu & Lorin Hitt & Bowen Lou, 2020. "Data Analytics, Innovation, and Firm Productivity," Management Science, INFORMS, vol. 66(5), pages 2017-2039, May.
    16. Xueming Luo & Jie Zhang & Wenjing Duan, 2013. "Social Media and Firm Equity Value," Information Systems Research, INFORMS, vol. 24(1), pages 146-163, March.
    17. Castaldi, Carolina, 2018. "To trademark or not to trademark: The case of the creative and cultural industries," Research Policy, Elsevier, vol. 47(3), pages 606-616.
    18. Sulin Ba & Barrie R. Nault, 2017. "Emergent Themes in the Interface Between Economics of Information Systems and Management of Technology," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 652-666, April.
    19. Barroso, Alicia & Giarratana, Marco S. & Pasquini, Martina, 2019. "Product portfolio performance in new foreign markets: The EU trademark dual system," Research Policy, Elsevier, vol. 48(1), pages 11-21.
    20. Herz, Benedikt & Mejer, Malwina, 2019. "Effects of the European Union trademark: Lessons for the harmonization of intellectual property systems," Research Policy, Elsevier, vol. 48(7), pages 1841-1854.
    21. Chen, I-Ju & Hsu, Po-Hsuan & Wang, Yanzhi, 2022. "Staggered boards and product innovations: Evidence from Massachusetts State Bill HB 5640," Research Policy, Elsevier, vol. 51(4).
    22. Ardito, Lorenzo & Ernst, Holger & Messeni Petruzzelli, Antonio, 2020. "The interplay between technology characteristics, R&D internationalisation, and new product introduction: Empirical evidence from the energy conservation sector," Technovation, Elsevier, vol. 96.
    23. Feng Guo & Yijun Li & Likoebe M. Maruping & Adi Masli, 2023. "Complementarity Between Investment in Information Technology (IT) and IT Human Resources: Implications for Different Types of Firm Innovation," Information Systems Research, INFORMS, vol. 34(3), pages 1259-1275, September.
    24. Xinghua Deng & Ran Jing & Zheng Liang, 2020. "Trade liberalisation and domestic brands: Evidence from China's accession to the WTO," The World Economy, Wiley Blackwell, vol. 43(8), pages 2237-2262, August.

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