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An unconventional approach to intellectual property protection: the case of an Australian firm transferring shipbuilding technologies to China

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  • McGaughey, Sara L.
  • Liesch, Peter W.
  • Poulson, Duncan

Abstract

Risks associated with the dissipation of intellectual property rights of foreign firms transferring technology to China have received some attention in the academic and professional, trade-based literature. An innovative Australian manufacturer and designer of large, high-speed catamaran ferries (INCAT) recently entered into a joint venture with a Hong Kong-based partner (AFAI) to manufacture ferries in China, without any formal, institutional protection of its proprietary knowledge. Key findings uncovered through an in-depth analysis of this case include the identification of novel bundles of firm-specific resources and capabilities that sustain a firm's intellectual property and, ultimately, its competitive advantage in the face of dissipation risks, and a combinative competency of the firm in creating these bundles. This study illustrates a case in which the conventional means of protecting intellectual property need not always be followed to best ensure the firm's retaining its competitive positioning in foreign markets.

Suggested Citation

  • McGaughey, Sara L. & Liesch, Peter W. & Poulson, Duncan, 2000. "An unconventional approach to intellectual property protection: the case of an Australian firm transferring shipbuilding technologies to China," Journal of World Business, Elsevier, vol. 35(1), pages 1-20, April.
    • Handle: RePEc:eee:worbus:v:35:y:2000:i:1:p:1-20
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    1. Ramasamy, Bala & Goh, K.W. & Yeung, Matthew C.H., 2006. "Is Guanxi (relationship) a bridge to knowledge transfer?," Journal of Business Research, Elsevier, vol. 59(1), pages 130-139, January.
    2. Andersson, Ulf & Dasí, Àngels & Mudambi, Ram & Pedersen, Torben, 2016. "Technology, innovation and knowledge: The importance of ideas and international connectivity," Journal of World Business, Elsevier, vol. 51(1), pages 153-162.
    3. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    4. Elizabeth Webster & Paul H. Jensen, 2006. "Investment in Intangible Capital: An Enterprise Perspective," The Economic Record, The Economic Society of Australia, vol. 82(256), pages 82-96, March.
    5. Kaufmann, Lutz & Roessing, Soenke, 2005. "Managing conflict of interests between headquarters and their subsidiaries regarding technology transfer to emerging markets--a framework," Journal of World Business, Elsevier, vol. 40(3), pages 235-253, August.
    6. Raquel Sanchis & Maria Rosa Sanchis-Gisbert & Raul Poler, 2020. "Conceptualisation of the Three-Dimensional Matrix of Collaborative Knowledge Barriers," Sustainability, MDPI, vol. 12(3), pages 1-24, February.
    7. Marcus M. Keupp & Angela Beckenbauer & Oliver Gassmann, 2010. "Enforcing Intellectual Property Rights in Weak Appropriability Regimes," Management International Review, Springer, vol. 50(1), pages 109-130, February.
    8. Beamish, Paul W. & Lupton, Nathaniel C., 2016. "Cooperative strategies in international business and management: Reflections on the past 50 years and future directions," Journal of World Business, Elsevier, vol. 51(1), pages 163-175.
    9. Vikrant Shirodkar & Palitha Konara, 2017. "Institutional Distance and Foreign Subsidiary Performance in Emerging Markets: Moderating Effects of Ownership Strategy and Host-Country Experience," Management International Review, Springer, vol. 57(2), pages 179-207, April.
    10. Lunnan, Randi & McGaughey, Sara L., 2019. "Orchestrating international production networks when formal authority shifts," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    11. Elizabeth Webster, 2002. "Intangible and Intellectual Capital: A Review of the Literature," Melbourne Institute Working Paper Series wp2002n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    12. Kristin Brandl & Izzet Darendeli & Ram Mudambi, 2019. "Foreign actors and intellectual property protection regulations in developing countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(5), pages 826-846, July.
    13. Yang, Deli & Sonmez, Mahmut, 2013. "Integration and divergence of patent systems across national and international institutions," Journal of World Business, Elsevier, vol. 48(4), pages 527-538.
    14. Prud'homme, Dan & von Zedtwitz, Max, 2019. "Managing “forced” technology transfer in emerging markets: The case of China," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    15. Stumpf, Stephen A. & Chaudhry, Peggy, 2010. "Country matters: Executives weigh in on the causes and counter measures of counterfeit trade," Business Horizons, Elsevier, vol. 53(3), pages 305-314, May.
    16. Cao, Qing, 2014. "Insight into weak enforcement of intellectual property rights in China," Technology in Society, Elsevier, vol. 38(C), pages 40-47.

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