IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v52y2021i4d10.1057_s41267-021-00412-7.html
   My bibliography  Save this article

A stakeholder-based view of the evolution of intellectual property institutions

Author

Listed:
  • Dan Prud’homme

    (Research Center)

  • Tony W. Tong

    (University of Colorado Boulder)

  • Nianchen Han

    (University of Colorado Boulder)

Abstract

In this article, we address several limitations of prior international business studies that investigate how and why intellectual property rights (IPR) institutions evolve in ways of consequence to multinationals. To do this, we develop a dynamic stakeholder-based view (SBV) of micro- and macro-processes shaping the evolution of formal institutions. The SBV micro-processes include (1) establishment of endogenous and exogenous stakeholders, (2) formation of stakeholders’ interests, (3) evaluation of stakeholders’ salience, (4) governance of the focal institution, and (5) interpretation of the impacts from institutional governance. The SBV macro-processes include (1) feedback loops among the micro-processes and (2) the stickiness of each stakeholder process. We demonstrate the explanatory power of our framework by offering historical examples of how and why the SBV processes have shaped the heterogeneous evolution of IPR institutions in China, the US, and other countries. We argue that IPR institutions, despite experiencing significant convergence in places, will continue to diverge across countries in ways of consequence to multinationals due to the stickiness of stakeholder processes. We also illustrate that the third SBV micro-process, evaluation of stakeholders’ salience, most immediately explains IPR institutions’ evolution. Our work challenges recent assertions about the evolution of IPR institutions and what this means for multinational firms doing business across borders.

Suggested Citation

  • Dan Prud’homme & Tony W. Tong & Nianchen Han, 2021. "A stakeholder-based view of the evolution of intellectual property institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 773-802, June.
  • Handle: RePEc:pal:jintbs:v:52:y:2021:i:4:d:10.1057_s41267-021-00412-7
    DOI: 10.1057/s41267-021-00412-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-021-00412-7
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41267-021-00412-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sokoloff, Kenneth L., 1988. "Inventive Activity in Early Industrial America: Evidence From Patent Records, 1790–1846," The Journal of Economic History, Cambridge University Press, vol. 48(4), pages 813-850, December.
    2. Tony W Tong & Todd M Alessandri & Jeffrey J Reuer & Asda Chintakananda, 2008. "How much does country matter? An analysis of firms’ growth options," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(3), pages 387-405, April.
    3. Gene M. Grossman & Edwin L.-C. Lai, 2004. "International Protection of Intellectual Property," American Economic Review, American Economic Association, vol. 94(5), pages 1635-1653, December.
    4. 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.
    5. Jonathan P. Doh & Thomas Lawton & Tazeeb Rajwani, 2012. "Advancing Nonmarket Strategy Research : Institutional Perspectives in a Changing World," Post-Print hal-02276718, HAL.
    6. Boldrin,Michele & Levine,David K., 2010. "Against Intellectual Monopoly," Cambridge Books, Cambridge University Press, number 9780521127264, September.
    7. William Q Judge & Stav Fainshmidt & J Lee Brown III, 2014. "Which model of capitalism best delivers both wealth and equality?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(4), pages 363-386, May.
    8. David D. Friedman & William M. Landes & Richard A. Posner, 1991. "Some Economics of Trade Secret Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 61-72, Winter.
    9. Shaomin Li & Ilan Alon, 2020. "China’s intellectual property rights provocation: A political economy view," Journal of International Business Policy, Palgrave Macmillan, vol. 3(1), pages 60-72, March.
    10. Benjamin Neville & Simon Bell & Gregory Whitwell, 2011. "Stakeholder Salience Revisited: Refining, Redefining, and Refueling an Underdeveloped Conceptual Tool," Journal of Business Ethics, Springer, vol. 102(3), pages 357-378, September.
    11. H. Igor Ansoff, 1979. "Strategic Management," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-02971-6, October.
    12. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    13. Peggy Chaudhry, 2009. "The Special Case of China," Springer Books, in: The Economics of Counterfeit Trade, chapter 9, pages 121-136, Springer.
    14. André van Hoorn & Robbert Maseland, 2016. "How institutions matter for international business: Institutional distance effects vs institutional profile effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(3), pages 374-381, April.
    15. Khan, B. Zorina, 2013. "Selling Ideas: An International Perspective on Patenting and Markets for Technological Innovations, 1790–1930," Business History Review, Cambridge University Press, vol. 87(1), pages 39-68, April.
    16. James A Brander & Victor Cui & Ilan Vertinsky, 2017. "China and intellectual property rights: A challenge to the rule of law," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 908-921, September.
    17. Margaret K. Kyle & Anita M. McGahan, 2012. "Investments in Pharmaceuticals Before and After TRIPS," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1157-1172, November.
    18. Sell,Susan K., 2003. "Private Power, Public Law," Cambridge Books, Cambridge University Press, number 9780521819145, September.
    19. Freeman, R. Edward, 1994. "The Politics of Stakeholder Theory: Some Future Directions1," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 409-421, October.
    20. Wang, Pien & Tong, Tony W. & Koh, Chun Peng, 2004. "An integrated model of knowledge transfer from MNC parent to China subsidiary," Journal of World Business, Elsevier, vol. 39(2), pages 168-182, May.
    21. Nicolas Dahan & Jonathan Doh & Jonathan Raelin, 2015. "Pivoting the Role of Government in the Business and Society Interface: A Stakeholder Perspective," Journal of Business Ethics, Springer, vol. 131(3), pages 665-680, October.
    22. Crouch, Colin, 2005. "Capitalist Diversity and Change: Recombinant Governance and Institutional Entrepreneurs," OUP Catalogue, Oxford University Press, number 9780199286652.
    23. Robert L Ostergard, 2000. "The Measurement of Intellectual Property Rights Protection," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(2), pages 349-360, June.
    24. Klaus Desmet & Avner Greif & Stephen L. Parente, 2020. "Spatial competition, innovation and institutions: the Industrial Revolution and the Great Divergence," Journal of Economic Growth, Springer, vol. 25(1), pages 1-35, March.
    25. 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.
    26. Christine Oliver, 1997. "Sustainable competitive advantage: combining institutional and resource‐based views," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 697-713, October.
    27. Richard A. Wolfe & Daniel S. Putler, 2002. "How Tight Are the Ties that Bind Stakeholder Groups?," Organization Science, INFORMS, vol. 13(1), pages 64-80, February.
    28. Harhoff, Dietmar & Hoisl, Karin, 2007. "Institutionalized incentives for ingenuity--Patent value and the German Employees' Inventions Act," Research Policy, Elsevier, vol. 36(8), pages 1143-1162, October.
    29. Xufei Ma & Tony W Tong & Markus Fitza, 2013. "How much does subnational region matter to foreign subsidiary performance? Evidence from Fortune Global 500 Corporations’ investment in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(1), pages 66-87, January.
    30. Gangjee,Dev, 2012. "Relocating the Law of Geographical Indications," Cambridge Books, Cambridge University Press, number 9780521192026, September.
    31. Michele Boldrin & David Levine, 2002. "The Case Against Intellectual Property," American Economic Review, American Economic Association, vol. 92(2), pages 209-212, May.
    32. Olga Petricevic & David J Teece, 2019. "The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1487-1512, December.
    33. Gregory Jackson & Richard Deeg, 2008. "Comparing capitalisms: understanding institutional diversity and its implications for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 540-561, June.
    34. Geoffrey Jones & Tarun Khanna, 2006. "Bringing history (back) into international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 453-468, July.
    35. 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.
    36. David Dequech, 2001. "Bounded Rationality, Institutions, and Uncertainty," Journal of Economic Issues, Taylor & Francis Journals, vol. 35(4), pages 911-929, December.
    37. Charles W. L. Hill & Thomas M. Jones, 1992. "Stakeholder‐Agency Theory," Journal of Management Studies, Wiley Blackwell, vol. 29(2), pages 131-154, March.
    38. Miric, Milan & Boudreau, Kevin J. & Jeppesen, Lars Bo, 2019. "Protecting their digital assets: The use of formal & informal appropriability strategies by App developers," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    39. Fainshmidt, Stav & Judge, William Q. & Aguilera, Ruth V. & Smith, Adam, 2018. "Varieties of institutional systems: A contextual taxonomy of understudied countries," Journal of World Business, Elsevier, vol. 53(3), pages 307-322.
    40. Jean-Frédéric Morin & Richard E. Gold, 2014. "An Integrated Model of Legal Transplantation: The Diffusion of Intellectual Property Law in Developing Countries," ULB Institutional Repository 2013/149496, ULB -- Universite Libre de Bruxelles.
    41. B. Zorina Khan & Kenneth L. Sokoloff, 2001. "The Early Development of Intellectual Property Institutions in the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 233-246, Summer.
    42. Geoffrey M. Hodgson (ed.), 2007. "The Evolution of Economic Institutions," Books, Edward Elgar Publishing, number 12603.
    43. Gregory Jackson & Richard Deeg, 2019. "Comparing capitalisms and taking institutional context seriously," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(1), pages 4-19, February.
    44. Papageorgiadis, Nikolaos & McDonald, Frank, 2019. "Defining and Measuring the Institutional Context of National Intellectual Property Systems in a post-TRIPS world," Journal of International Management, Elsevier, vol. 25(1), pages 3-18.
    45. Mezzanotti, Filippo & Simcoe, Timothy, 2019. "Patent policy and American innovation after eBay: An empirical examination," Research Policy, Elsevier, vol. 48(5), pages 1271-1281.
    46. Mike W Peng & David Ahlstrom & Shawn M Carraher & Weilei (Stone) Shi, 2017. "An institution-based view of global IPR history," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 893-907, September.
    47. Alain Verbeke & Vincent Tung, 2013. "The Future of Stakeholder Management Theory: A Temporal Perspective," Journal of Business Ethics, Springer, vol. 112(3), pages 529-543, February.
    48. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99, April.
    49. Jandhyala, Srividya, 2015. "International and domestic dynamics of intellectual property protection," Journal of World Business, Elsevier, vol. 50(2), pages 284-293.
    50. Sell,Susan K., 2003. "Private Power, Public Law," Cambridge Books, Cambridge University Press, number 9780521525398, September.
    51. Milena Parent & David Deephouse, 2007. "A Case Study of Stakeholder Identification and Prioritization by Managers," Journal of Business Ethics, Springer, vol. 75(1), pages 1-23, September.
    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. 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.
    2. Ya-Feng Zhang, 2022. "Cultural and Creative Industries and Copyright at the Regional Level: The Cases of Shenzhen and Hangzhou in China," Sustainability, MDPI, vol. 14(9), pages 1-17, April.
    3. Yang, Zaoli & Wu, Qingyang & Venkatachalam, K. & Li, Yuchen & Xu, Bing & Trojovský, Pavel, 2022. "Topic identification and sentiment trends in Weibo and WeChat content related to intellectual property in China," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    4. Bazel-Shoham, Ofra & Lee, Sang Mook & Ahammad, Mohammad Faisal & Tarba, Shlomo Y. & Alon, Ilan, 2023. "IP protection and ownership in cross-border acquisitions," International Business Review, Elsevier, vol. 32(3).
    5. Ya-Feng Zhang & Tara Qian Sun, 2022. "The Interaction of Biotechnology and Institution: A Stakeholder Perspective," Sustainability, MDPI, vol. 14(12), pages 1-22, June.

    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. Suma Athreye & Lucia Piscitello & Kenneth C. Shadlen, 2020. "Twenty-five years since TRIPS: Patent policy and international business," Journal of International Business Policy, Palgrave Macmillan, vol. 3(4), pages 315-328, December.
    2. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    3. 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.
    4. Danai Christopoulou & Nikolaos Papageorgiadis & Chengang Wang & Georgios Magkonis, 2021. "IPR Law Protection and Enforcement and the Effect on Horizontal Productivity Spillovers from Inward FDI to Domestic Firms: A Meta-analysis," Management International Review, Springer, vol. 61(2), pages 235-266, April.
    5. Mike W Peng & David Ahlstrom & Shawn M Carraher & Weilei (Stone) Shi, 2017. "An institution-based view of global IPR history," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 893-907, September.
    6. Sun, Sunny Li & Choi, Yoona & Guo, Feng & Guo, Jinyu & Zou, Bo & Cui, Lin, 2023. "Winning intellectual property rights lawsuits in China," Journal of World Business, Elsevier, vol. 58(3).
    7. Albino-Pimentel, João & Dussauge, Pierre & El Nayal, Omar, 2022. "Intellectual property rights, non-market considerations and foreign R&D investments," Research Policy, Elsevier, vol. 51(2).
    8. Papageorgiadis, Nikolaos & McDonald, Frank, 2019. "Defining and Measuring the Institutional Context of National Intellectual Property Systems in a post-TRIPS world," Journal of International Management, Elsevier, vol. 25(1), pages 3-18.
    9. Papageorgiadis, Nikolaos & Sofka, Wolfgang, 2020. "Patent enforcement across 51 countries – Patent enforcement index 1998–2017," Journal of World Business, Elsevier, vol. 55(4).
    10. Nasirov, Shukhrat & Gokh, Irina & Filippaios, Fragkiskos, 2022. "Technological radicalness, R&D internationalization, and the moderating effect of intellectual property protection," Journal of Business Research, Elsevier, vol. 145(C), pages 215-227.
    11. Papageorgiadis, Nikolaos & McDonald, Frank & Wang, Chengang & Konara, Palitha, 2020. "The characteristics of intellectual property rights regimes: How formal and informal institutions affect outward FDI location," International Business Review, Elsevier, vol. 29(1).
    12. Olga Petricevic & David J Teece, 2019. "The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1487-1512, December.
    13. Matthew M. C. Allen & Geoffrey Wood & Mehmet Demirbag, 2022. "Developing theoretically informed typologies in international business: Why we need them, and how to do it," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2133-2146, December.
    14. Simon Hartmann & Thomas Lindner & Jakob Müllner & Jonas Puck, 2022. "Beyond the nation-state: Anchoring supranational institutions in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1282-1306, August.
    15. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    16. Iain M. Cockburn & Jean O. Lanjouw & Mark Schankerman, 2016. "Patents and the Global Diffusion of New Drugs," American Economic Review, American Economic Association, vol. 106(1), pages 136-164, January.
    17. Mike W. Peng & Joyce C. Wang & Nishant Kathuria & Jia Shen & Miranda J. Welbourne Eleazar, 2023. "Toward an institution-based paradigm," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 353-382, June.
    18. Sjoerd Beugelsdijk, 2022. "Capitalizing on the uniqueness of international business: Towards a theory of place, space, and organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2050-2067, December.
    19. Jung Kwan Kim & Ram Mudambi, 2020. "An ecosystem-based analysis of design innovation infringements: South Korea and China in the global tire industry," Journal of International Business Policy, Palgrave Macmillan, vol. 3(1), pages 38-57, March.
    20. Alessandro Zattoni & Emmanouil Dedoulis & Stergios Leventis & Hans Van Ees, 2020. "Corporate governance and institutions—A review and research agenda," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 465-487, November.

    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:pal:jintbs:v:52:y:2021:i:4:d:10.1057_s41267-021-00412-7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.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.