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Knowledge Protection Strategies of MNCs in Emerging Markets: The Influence of Ownership Structure
Type
conference paper
Date Issued
2015-06-24
Author(s)
Abstract
Practitioners tend to name knowledge spillovers from MNCs' emerging market subsidiaries to their competitors as a perpetual threat to sustainable firm performance, especially in the context of emerging markets' constrained market access and forced localization policies in combination with weak IP legislation. Nevertheless, western firms perform R&D in emerging markets to fulfil the requirements for market access and to better meet local customer needs, using informal protection strategies to protect their knowledge and IPR.
The issue of firm-level characteristics on knowledge protection strategies that MNCs use in emerging markets as so far not been addressed by researchers. Thus, the aim of this paper is to investigate differences between knowledge protection strategies with regard to the ownership structure of firms. We collected data from six European MNCs that perform R&D in emerging markets. Our analysis shows how and why firms employ different protection strategies as well as in how far and why the use of and the success with individual protection strategies differs between family and nonfamily firms. We find that family firms rely more on and are more successful with preventive knowledge protection strategies, whereas nonfamily firms rely more on remedial protection strategies. Based on our insights, we derive implications for practitioners of western firms to improve the utilization of knowledge protection strategies in the future.
The issue of firm-level characteristics on knowledge protection strategies that MNCs use in emerging markets as so far not been addressed by researchers. Thus, the aim of this paper is to investigate differences between knowledge protection strategies with regard to the ownership structure of firms. We collected data from six European MNCs that perform R&D in emerging markets. Our analysis shows how and why firms employ different protection strategies as well as in how far and why the use of and the success with individual protection strategies differs between family and nonfamily firms. We find that family firms rely more on and are more successful with preventive knowledge protection strategies, whereas nonfamily firms rely more on remedial protection strategies. Based on our insights, we derive implications for practitioners of western firms to improve the utilization of knowledge protection strategies in the future.
Language
English
Keywords
knowledge protection strategies
emerging markets
international R&D
ownership structure
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Event Title
R&D Management Conference (RADMA) 2015
Event Location
Pisa
Event Date
23.-26.06.2015
Subject(s)
Division(s)
Eprints ID
242307