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Fearlessly Swimming Upstream to Risky Waters: The Role of Geographic Entry in Innovation

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  • Curba Morris Lampert
  • Minyoung Kim
  • Timothy David Hubbard
  • Raja Roy
  • George Leckie

Abstract

We examine the puzzling geographic pattern that shows firms entering countries with weak intellectual property rights (IPR) protection with their research and development (R&D) activities. Geographic entry into weak IPR protection countries is at odds with conventional wisdom as such an environment erodes a firm's ability to appropriate from its innovations. We offer that while the well‐established practice of spreading out a firm's value chain activities across a region has important implications for value creation, what remains unaddressed is the value appropriation aspect of such activities. We introduce a multilevel theory and maintain that operating regionally through commercialization activities (downstream activities) provides complementary assets to the upstream activities – specifically R&D activities in a country within that region – with which focal firms can appropriate more from their innovations. We find that regional downstream commercialization activities can substitute for weak IPR regimes, thereby providing firms with an alternative mechanism for protecting their intellectual property in weak IPR countries.

Suggested Citation

  • Curba Morris Lampert & Minyoung Kim & Timothy David Hubbard & Raja Roy & George Leckie, 2019. "Fearlessly Swimming Upstream to Risky Waters: The Role of Geographic Entry in Innovation," Journal of Management Studies, Wiley Blackwell, vol. 56(7), pages 1377-1413, November.
  • Handle: RePEc:bla:jomstd:v:56:y:2019:i:7:p:1377-1413
    DOI: 10.1111/joms.12347
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    Cited by:

    1. Mashiho Mihalache & Oli Mihalache & Jan Ende, 2021. "International Diversification and MNE Innovativeness: A Contingency Perspective of Foreign Subsidiary Portfolio Characteristics," Management International Review, Springer, vol. 61(6), pages 769-798, December.
    2. Dan Prud’homme & Tony W. Tong, 2024. "Rethinking firm-specific advantages from intellectual property rights: Boundary conditions for MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(1), pages 91-109, February.
    3. Marcelo Bucheli & Xavier Durán & Minyoung Kim, 2024. "My best frenemy: a history-to-theory approach to MNCs’ corporate diplomatic activities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(3), pages 326-341, April.
    4. Minyoung Kim & Curba Morris Lampert & Raja Roy, 2020. "Regionalization of R&D activities: (Dis)economies of interdependence and inventive performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1054-1075, September.
    5. Yanjie Wu & Sujuan Wang, 2021. "Sustainable Market Entry Strategy under a Supply Chain Environment," Sustainability, MDPI, vol. 13(6), pages 1-15, March.

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