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Control of intellectual assets in client relationships: implications for innovation

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  • Aija Leiponen

Abstract

This empirical study of business‐to‐business service firms examines the determinants and effects of control rights to intellectual assets in a property rights theoretic framework. Regression analyses using survey data suggest that service suppliers that retain control over their intellectual output are more innovative. In long‐term relationships, service firms' clients may thus be better off balancing their need to control outsourced activities with the suppliers' incentives to invest in learning and innovation. Additionally, and aligned with property rights theoretic predictions, service suppliers' bargaining power and their indispensability in service projects are positively associated with their ability to retain control rights. In contrast, innovation capabilities are not very significant in determining control rights allocation between service suppliers and their clients. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Aija Leiponen, 2008. "Control of intellectual assets in client relationships: implications for innovation," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1371-1394, December.
  • Handle: RePEc:bla:stratm:v:29:y:2008:i:13:p:1371-1394
    DOI: 10.1002/smj.715
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    Cited by:

    1. Brian S. Silverman & Paul Ingram, 2017. "Asset ownership and incentives in early shareholder capitalism: Liverpool shipping in the eighteenth century We are deeply indebted to historians Nick Radburn and especially Stephen Behrendt for exten," Strategic Management Journal, Wiley Blackwell, vol. 38(4), pages 854-875, April.
    2. Miozzo, Marcela & Desyllas, Panos & Lee, Hsing-fen & Miles, Ian, 2016. "Innovation collaboration and appropriability by knowledge-intensive business services firms," Research Policy, Elsevier, vol. 45(7), pages 1337-1351.
    3. Kyle J. Mayer & Zhe (Adele) Xing & Pablo Mondal, 2022. "Contracting for innovation: Designing contracts that account for exchange hazards and the need for innovation," Strategic Management Journal, Wiley Blackwell, vol. 43(11), pages 2253-2278, November.
    4. Mario Barchi & Marco Greco, 2018. "Negotiation in Open Innovation: A Literature Review," Group Decision and Negotiation, Springer, vol. 27(3), pages 343-374, June.
    5. Golichenko, Oleg, 2023. "Передача Знаний И Трансформация Мезоединиц: Роль Сетевых Взаимодействий На Мезотраектории Развития Экономической Системы [Transfer of Knowledge and Transformation of Mesounits: the Role of Network ," MPRA Paper 119315, University Library of Munich, Germany.
    6. John N. Walsh & Jamie O’Brien, 2018. "Knowledge Asymmetries and Service Management: Three Case Studies," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 1-26, September.
    7. Hurmelinna-Laukkanen, Pia & Möller, Kristian & Nätti, Satu, 2022. "Orchestrating innovation networks: Alignment and orchestration profile approach," Journal of Business Research, Elsevier, vol. 140(C), pages 170-188.
    8. Jurgen Poesche & Taina Pihlajarinne & Anette Alén-Savikko & Timo Nyberg & Ilkka Kauranen, 2019. "Decentralized Production: The Need for Social Norms-Based Intellectual Property?," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-18, April.
    9. Catherine Magelssen, 2020. "Allocation of property rights and technological innovation within firms," Strategic Management Journal, Wiley Blackwell, vol. 41(4), pages 758-787, April.
    10. Sea-Jin Chang, 2019. "When to go it alone: Examining post-conversion performance of international joint ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(6), pages 998-1020, August.
    11. Buss, Philipp & Peukert, Christian, 2015. "R&D outsourcing and intellectual property infringement," Research Policy, Elsevier, vol. 44(4), pages 977-989.
    12. Yudan Dou & Xiaolong Xue & Zebin Zhao & Xiaowei Luo, 2019. "Factors Influence China’s Off-Site Construction Technology Innovation Diffusion," Sustainability, MDPI, vol. 11(7), pages 1-23, March.
    13. Marfri Gambal & Aleksandre Asatiani & Julia Kotlarsky, 2022. "Strategic Innovation Through Outsourcing: A Theoretical Review," Papers 2206.00982, arXiv.org.

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