Arm's length and captive transactions: Patent-based view of control in internationalization
- 作者：Deli Yang ; dyang@trinity.edu ; [Author Vitae]
- 关键词：Arm's length transaction ; Captive transaction ; Competitiveness ; Complementarity ; Conditions ; Industry-based view ; Institution-based view ; Patent ; Patent control ; Resources-based view
- 刊名：International Business Review
- 出版年：2012
- 期刊代码：19_09695931
- 类别：bus
- 出版时间：August, 2012
- 卷：21
- 期：4
- 页码：575-587
- 文件大小：378 K
摘要
This conceptual paper responds to the need for examining the role of patent control over internationalization. It proposes the patent-based strategy of control, in other words, how 3Cs - complementarity, competitiveness, and conditions - impact the strategic decision on corporate control over the patent; thereby the option of commercialization between arm's length and captive transactions. It demonstrates the multiple theoretical natures of business strategies; emphasizes how strategic fit can impact the decision on control; addresses patents as intangible assets that form a comparative and competitive advantage rather than only as a legal right and that have bearing on strategic decision making. The paper proposes that the intention of high control over a patent drives the owner to opt for captive transactions; low control arm's length transactions. Nonetheless, the challenge lies before the decision is made; managers need to assess the 鈥榮trategic fit鈥?elements that directly impact on the extent of control.