Protecting intellectual property in foreign subsidiaries: An internal network defense perspective

Yan Yan (), Jiatao Li () and Jingjing Zhang ()
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Yan Yan: Renmin University of China
Jiatao Li: Hong Kong University of Science and Technology
Jingjing Zhang: University of Chinese Academy of Sciences

Journal of International Business Studies, 2022, vol. 53, issue 9, No 5, 1924-1944

Abstract: Abstract This study examines firm internal network structures as a defense of intellectual property rights (IPR) in high-risk environments with inadequate IPR protection. Specifically, we investigate firm social and knowledge-based network structures individually. A foreign subsidiary can intensify social complexity by strengthening the small-worldness in its collaboration networks and attenuate knowledge-relatedness by decreasing the small-worldness in its knowledge networks. In a subsidiary, the effectiveness of these measures depends to some extent on the parent firm’s experience in the host country. Longitudinal data on 401 foreign subsidiaries in the pharmaceutical industry from 1980 to 2017 have been analyzed in a quasi-experiment using difference-in-differences and two-stage regression. The results provide empirical support for these ideas. Findings highlight the explanatory power of internal network structures when discussing knowledge protection and show the utility of taking an internal network defense perspective in examining IPR protection.

Keywords: network theory; intellectual property; subsidiaries; internal networks; small-worldness; pharmaceuticals (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (7)

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DOI: 10.1057/s41267-021-00430-5

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