effects of reputational sanctions --> wijnberg, 2001 Flashcards
whether and under what conditions reputational sanctions are a strong deterrent to imitative firm behaviour
reputational sanctions can be effective barrier to imitation
in particular when firms perceive a reputation for innovation to be a factor in their competitive success
formal mechanisms in protection against imitation
IPR protection
- copyright
- models
- patnents
others
informal mechanisms in protection against imitation
secrecy
continuous rapid innovation
reputation mechanism in networks
reputational sanction as deterrent to imitative firm behaviour
effective barrier to imitation
linkages between firms foster effectiveness - easy to detect imitative behaviour
group coordination
- not only one person will know - everyone will know
product design
outcome of industrual design activity
reliability, aesthetic appeal, style and image
appropriability
ability of firms to secure returns from their innovative exertions
reputational capital
reputation for innovation = strategic value
tangible asset but fragile
east asian business
reputation as losing face
western style
legal contracts
reliance on reputation mechanism stronger when
governmental enforcement of formal contracts is weaker
intellectual property right = weaker
greater value placed on reputation for design innovation
greater likelihood of reputaiton sanction will be an effective deterrent to imitation
sanction of loss of repuation capital more likely to be an effective deterrent to imitation where
tight linkages among the design innovating rivals exists that contribute to the firm’s competitive strength
design innovative firms with weak IPR regim rely more
heavily on the sanction of loss of reputational capital
ensuring appropriability
only lower market segment copy design to the last detail
not considered a threat / direct virals
dutch firms COMPLIMENT
alternative means of appropriation with IPR
