IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i3p440-d93356.html
   My bibliography  Save this article

Firms’ Negative Perceptions on Patents, Technology Management Strategies, and Subsequent Performance

Author

Listed:
  • Eun Jin Han

    (Department of Information & Industrial Engineering, Yonsei University, 134 Shinchon-dong, Seoul 120-749, Korea)

  • So Young Sohn

    (Department of Information & Industrial Engineering, Yonsei University, 134 Shinchon-dong, Seoul 120-749, Korea)

Abstract

While patents do have many advantages, their disadvantages include requiring disclosure of technical information and imposing the burden of patenting and litigation costs. In this study, we investigate the relationship between a firm’s negative perception on patents, technology management strategies, and subsequent performance. For this purpose, we use a categorical canonical correlation analysis of the top 200, large, R&D-intensive firms in Korea. We find that negative perceptions such as burdensome transaction costs, non-patenting culture, and uncertainty of the outcome of patent litigation are associated with firms’ technology management strategies, such as purchase of licenses, and subsequent performance, such as an increase in the number of inventions from the cross-fertilization of different technologies. The results of this study are expected to contribute to a better understanding of firms’ negative attitudes toward the effects of patents, their subsequent technology management strategies, and resulting performance.

Suggested Citation

  • Eun Jin Han & So Young Sohn, 2017. "Firms’ Negative Perceptions on Patents, Technology Management Strategies, and Subsequent Performance," Sustainability, MDPI, vol. 9(3), pages 1-15, March.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:3:p:440-:d:93356
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/3/440/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/3/440/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frédéric Delmar & Johan Wiklund, 2008. "The Effect of Small Business Managers’ Growth Motivation on Firm Growth: A Longitudinal Study," Entrepreneurship Theory and Practice, , vol. 32(3), pages 437-457, May.
    2. Grimaldi, Michele & Cricelli, Livio & Di Giovanni, Martina & Rogo, Francesco, 2015. "The patent portfolio value analysis: A new framework to leverage patent information for strategic technology planning," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 286-302.
    3. Ernst, Holger, 2001. "Patent applications and subsequent changes of performance: evidence from time-series cross-section analyses on the firm level," Research Policy, Elsevier, vol. 30(1), pages 143-157, January.
    4. Yoon Seong Kim & Eun Jin Han & So Young Sohn, 2017. "Demand Forecasting for Heavy-Duty Diesel Engines Considering Emission Regulations," Sustainability, MDPI, vol. 9(2), pages 1-16, January.
    5. Raghu Garud & Arun Kumaraswamy & Peter Karnøe, 2010. "Path Dependence or Path Creation?," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 760-774, June.
    6. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    7. Krsto Pandza, 2011. "Why and How Will a Group Act Autonomously to Make an Impact on the Development of Organizational Capabilities?," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1015-1043, July.
    8. Kang, Kiyeon & Sohn, So Young, 2016. "Evaluating the patenting activities of pharmaceutical research organizations based on new technology indices," Journal of Informetrics, Elsevier, vol. 10(1), pages 74-81.
    9. Encaoua, David & Guellec, Dominique & Martinez, Catalina, 2006. "Patent systems for encouraging innovation: Lessons from economic analysis," Research Policy, Elsevier, vol. 35(9), pages 1423-1440, November.
    10. David J Teece, 2008. "Capturing Value from Technological Innovation: Integration, Strategic Partnering, and Licensing Decisions," World Scientific Book Chapters, in: Technological Know-How, Organizational Capabilities, And Strategic Management Business Strategy and Enterprise Development in Competitive Environments, chapter 12, pages 237-252, World Scientific Publishing Co. Pte. Ltd..
    11. Macdonald, Stuart, 2004. "When means become ends: considering the impact of patent strategy on innovation," Information Economics and Policy, Elsevier, vol. 16(1), pages 135-158, March.
    12. Eun Han & So Sohn, 2015. "Patent valuation based on text mining and survival analysis," The Journal of Technology Transfer, Springer, vol. 40(5), pages 821-839, October.
    13. Sangsung Park & Seung-Joo Lee & Sunghae Jun, 2015. "A Network Analysis Model for Selecting Sustainable Technology," Sustainability, MDPI, vol. 7(10), pages 1-16, September.
    14. Choi, Jin Young & Lee, Jong Ha & Sohn, So Young, 2009. "Impact analysis for national R&D funding in science and technology using quantification method II," Research Policy, Elsevier, vol. 38(10), pages 1534-1544, December.
    15. Steven W. Bradley & Dean A. Shepherd & Johan Wiklund, 2011. "The Importance of Slack for New Organizations Facing ‘Tough’ Environments," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1071-1097, July.
    16. James G. Combs & David J. Ketchen, Jr & R. Duane Ireland & Justin W. Webb, 2011. "The Role of Resource Flexibility in Leveraging Strategic Resources," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1098-1125, July.
    17. Ashish Arora & Marco Ceccagnoli, 2006. "Patent Protection, Complementary Assets, and Firms' Incentives for Technology Licensing," Management Science, INFORMS, vol. 52(2), pages 293-308, February.
    18. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    19. Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
    20. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    21. Vega-Jurado, Jaider & Gutiérrez-Gracia, Antonio & Fernández-de-Lucio, Ignacio & Manjarrés-Henri­quez, Liney, 2008. "The effect of external and internal factors on firms' product innovation," Research Policy, Elsevier, vol. 37(4), pages 616-632, May.
    22. Joshua Lerner, 1994. "The Importance of Patent Scope: An Empirical Analysis," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 319-333, Summer.
    23. KruegerJR, Norris F. & Reilly, Michael D. & Carsrud, Alan L., 2000. "Competing models of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 411-432.
    24. BangRae Lee & DongKyu Won & Jun-Hwan Park & LeeNam Kwon & Young-Ho Moon & Han-Joon Kim, 2016. "Patent-Enhancing Strategies by Industry in Korea Using a Data Envelopment Analysis," Sustainability, MDPI, vol. 8(9), pages 1-17, September.
    25. Michael T. Hannan & László Pólos & Glenn R. Carroll, 2007. "Language Matters, from Logics of Organization Theory: Audiences, Codes, and Ecologies," Introductory Chapters, in: Logics of Organization Theory: Audiences, Codes, and Ecologies, Princeton University Press.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yonghan Ju & So Young Sohn, 2017. "Technology Credit Scoring Based on a Quantification Method," Sustainability, MDPI, vol. 9(6), pages 1-16, June.
    2. Won Sang Lee & So Young Sohn, 2017. "Identifying Emerging Trends of Financial Business Method Patents," Sustainability, MDPI, vol. 9(9), pages 1-21, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hughes, A. & Mina, A., 2010. "The Impact of the Patent System on SMEs," Working Papers wp411, Centre for Business Research, University of Cambridge.
    2. Huang, Kenneth Guang-Lih & Huang, Can & Shen, Huijun & Mao, Hao, 2021. "Assessing the value of China's patented inventions," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    3. Mohd Shadab Danish & Pritam Ranjan & Ruchi Sharma, 2022. "Assessing the Impact of Patent Attributes on the Value of Discrete and Complex Innovations," Papers 2208.07222, arXiv.org.
    4. Mohd Shadab Danish & Pritam Ranjan & Ruchi Sharma, 2021. "Identification of “Valuable” Technologies via Patent Statistics in India: An Analysis Based on Renewal Information," BASE University Working Papers 13/2021, BASE University, Bengaluru, India.
    5. Nicolas van Zeebroeck & Bruno van Pottelsberghe de la Potterie, 2011. "Filing strategies and patent value," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(6), pages 539-561, February.
    6. Junhyeog Choi & Sunghae Jun & Sangsung Park, 2016. "A Patent Analysis for Sustainable Technology Management," Sustainability, MDPI, vol. 8(7), pages 1-13, July.
    7. Lichtenthaler, Ulrich, 2010. "Determinants of proactive and reactive technology licensing: A contingency perspective," Research Policy, Elsevier, vol. 39(1), pages 55-66, February.
    8. Emmanuel Dechenaux & Brent Goldfarb & Scott Shane & Marie Thursby, 2008. "Appropriability and Commercialization: Evidence from MIT Inventions," Management Science, INFORMS, vol. 54(5), pages 893-906, May.
    9. Christodoulou, Demetris & Lev, Baruch & Ma, Le, 2018. "The productivity of Chinese patents: The role of business area and ownership type," International Journal of Production Economics, Elsevier, vol. 199(C), pages 107-124.
    10. Jürgen Mihm & Fabian J. Sting & Tan Wang, 2015. "On the Effectiveness of Patenting Strategies in Innovation Races," Management Science, INFORMS, vol. 61(11), pages 2662-2684, November.
    11. Reitzig, Markus & Henkel, Joachim & Heath, Christopher, 2007. "On sharks, trolls, and their patent prey--Unrealistic damage awards and firms' strategies of "being infringed"," Research Policy, Elsevier, vol. 36(1), pages 134-154, February.
    12. Nicole Ziegler & Frauke Ruether & Martin Bader & Oliver Gassmann, 2013. "Creating value through external intellectual property commercialization: a desorptive capacity view," The Journal of Technology Transfer, Springer, vol. 38(6), pages 930-949, December.
    13. Valerio STERZI & Jean-Paul RAMESHKOUMAR & Johannes VAN DER POL, 2020. "Non-practicing entities and transparency in patent ownership in Europe," Bordeaux Economics Working Papers 2020-10, Bordeaux School of Economics (BSE).
    14. Mohd Hizam Hanafiah, & Sheikh Usman Yousaf, & Bushra Usman,, 2017. "The influence of psychological capital on the growth intentions of entrepreneurs: A study on Malaysian SME entrepreneurs," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(5), pages 556-569, December.
    15. Sternitzke, Christian, 2013. "An exploratory analysis of patent fencing in pharmaceuticals: The case of PDE5 inhibitors," Research Policy, Elsevier, vol. 42(2), pages 542-551.
    16. Bedford, Anna & Ma, Le & Ma, Nelson & Vojvoda, Kristina, 2022. "Australian innovation: Patent database construction and first evidence," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).
    17. Marco Caliendo & Alexander S. Kritikos & Claudia Stier, 2023. "The influence of start-up motivation on entrepreneurial performance," Small Business Economics, Springer, vol. 61(3), pages 869-889, October.
    18. Bernhard Ganglmair & Imke Reimers, 2019. "Visibility of Technology and Cumulative Innovation: Evidence from Trade Secrets Laws," CRC TR 224 Discussion Paper Series crctr224_2019_119v1, University of Bonn and University of Mannheim, Germany.
    19. Dante I. Leyva-de la Hiz & J. Alberto Aragon-Correa & Andrew G. Earle, 2022. "Innovating for Good in Opportunistic Contexts: The Case for Firms’ Environmental Divergence," Journal of Business Ethics, Springer, vol. 176(4), pages 705-721, April.
    20. Fischer, Timo & Henkel, Joachim, 2012. "Patent trolls on markets for technology – An empirical analysis of NPEs’ patent acquisitions," Research Policy, Elsevier, vol. 41(9), pages 1519-1533.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:3:p:440-:d:93356. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.