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Information- and rivalry-based perspectives on reactive patent litigation strategy

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  • Chen, Yi-Min
  • Ni, Yu-Ting
  • Liu, Hsin-Hsien
  • Teng, Ying-Maw

Abstract

Patent litigation is a common form of legal, economic and strategic behaviors that arise in a variety of business domains. Using information-based and rivalry-based theories, this study explores how asymmetric information, competitive rivalry in a strategic group and market positions influence companies' reactions to patent litigation. By applying an experimental design method to develop scenarios for top executives of small and medium-sized enterprises, the results show that a theoretical framework of asymmetric information, competitive rivalry in a strategic group and market positions affect a firm's reactive patent litigation strategy. These findings not only broaden information- and rivalry-based theories' explanations of reactive patent litigation decisions, but also enable us to formulate the codes of conduct for the managerial capability in regard to legal astuteness in patent litigation.

Suggested Citation

  • Chen, Yi-Min & Ni, Yu-Ting & Liu, Hsin-Hsien & Teng, Ying-Maw, 2015. "Information- and rivalry-based perspectives on reactive patent litigation strategy," Journal of Business Research, Elsevier, vol. 68(4), pages 788-792.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:4:p:788-792
    DOI: 10.1016/j.jbusres.2014.11.029
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    Cited by:

    1. Wang, Ling & Zhang, Yujia & Yan, Yushan, 2023. "Offensive patent litigation strategic choice: An organizational routine perspective," Technovation, Elsevier, vol. 122(C).
    2. Appio, Francesco Paolo & Baglieri, Daniela & Cesaroni, Fabrizio & Spicuzza, Lucia & Donato, Alessia, 2022. "Patent design strategies: Empirical evidence from European patents," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    3. Chen, Yi-Min & Liu, Hsin-Hsien & Wu, Hsin-Yi, 2016. "Reputation for toughness and anti-dumping rebuttals: Competitive rivalry, perceived benefits, and stage of the product life cycle," Journal of Business Research, Elsevier, vol. 69(6), pages 2145-2150.
    4. Chen, Yi-Min & Liu, Hsin-Hsien & Liu, Yu-Siang & Huang, Huei-Ting, 2016. "A preemptive power to offensive patent litigation strategy: Value creation, transaction costs and organizational slack," Journal of Business Research, Elsevier, vol. 69(5), pages 1634-1638.

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