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

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

Journal of Business Research, 2015, vol. 68, issue 4, 788-792

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.

Keywords: Patent litigation; Information-based theory; Rivalry-based theory; Asymmetric information; Strategic group; Market position (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:4:p:788-792

DOI: 10.1016/j.jbusres.2014.11.029

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