The Impact of Actors and the Aspect of Time in Institutional Change Processes in a Developing Country Context
The rise of developing countries is undeniably evident in the global business arena. There is increasing evidence of innovative and highly intellectual business activities from these countries, for example in the form of new drug developments from India and technological innovation from China. These innovations often require searching for and utilising tacit knowledge (Asheim and Coenen, 2005) which is prone to asymmetric information problems and intellectual property (IP) abuse. Thus, a firm that operates in these environments emphasises either loose or stringent IP protection standards which then influences the firm’s decision regarding the nature and location of innovative activities, in addition to capability endowments and cost calculations (Buckley and Casson, 1976; Dunning, 1988; Teece, 2006). As a result, governments are in continuous search for optimal levels of IP protection standards (varying from high to low levels) to ensure that there is a conducive environment for the advancement of local innovation systems (Chaminade et al., 2012; Jaffe et al., 1993). This is especially true in developing countries.
KeywordsInnovation System World Trade Organization Institutional Change Foreign Firm Innovative Activity
Unable to display preview. Download preview PDF.
- Boddewyn, J.J. and Brewer, T.L. (1994), ‘International-business political behavior: New theoretical directions’, Academy of Management Review, 19(1), 119–143.Google Scholar
- Boli, J. and Thomas, G.M. (1999), Constructing World Culture: International Nongovernmental Organizations since 1875, Stanford, CA: Stanford University Press.Google Scholar
- Brandl, K. and Mudambi, R. (2014), ‘EMNCs and catch-up processes: The case of four Indian industries’. In Cuervo-Cazurra, A., and Ramamurti R. (eds) (2014), Understanding Multinationals from Emerging Markets. Cambridge: Cambridge University Press.Google Scholar
- Darendeli, I.S. and Hill, T.L. (forthcoming), ‘Uncovering the complex relationships between political risk and MNE firm legitimacy: Insights from Libya’, Journal of International Business Studies forthcoming.Google Scholar
- Dunning, J.H. (1988), ‘The eclectic paradigm of international production: A restatement and some possible extensions’, Journal of International Business Studies, 1–31.Google Scholar
- Edquist, C. (2001) ‘The systems of innovation approach and innovation policy: An account of the state of the art’. In DRUID Conference, Aalborg, 12–15 June.Google Scholar
- Feinberg, S., Hill, T.L., and Darendeli, I.S. (2015), ‘An institutional perspective on non-market strategy for a world in flux’. In Lawton, T. (ed.) Companion to Nonmarket Strategy, London: Routledge.Google Scholar
- Fisman, R. (2001), ‘Estimating the value of political connections’, American Economic Review, 1095–1102.Google Scholar
- Hamdan-Livramento, I.M. (2009), ‘How compliant are developing countries with their TRIPS obligations?’ No. CEMI-WORKING PAPER-2009–001.Google Scholar
- Hillman, A.J. and Hitt, M.A. (1999), ‘Corporate political strategy formulation: A model of approach, participation, and strategy decision’, Academy of Management Review, 24(4), 825–842.Google Scholar
- Jacobson, H.K. and Weiss, E.B. (1998), ‘Assessing the record and designing strategies to engage countries’, Engaging Countries: Strengthening Compliance with International Environmental Accords, 511.Google Scholar
- Khanna, T., Palepu, K.G., and Sinha, J. (2005), ‘Strategies that fit emerging markets’, Harvard Business Review, 83(6), 4–19.Google Scholar
- — (2006), Understanding the Process of Economic Change. New Delhi, India: Academic Foundation.Google Scholar
- Scott, W.R. (2001), Institutions and Organizations (2nd ed.). Thousand Oaks, CA: Sage.Google Scholar
- Suchman, M.C. (1995), ‘Managing legitimacy: Strategic and institutional approaches’, Academy of Management Review, 20(3), 571–610.Google Scholar
- Williamson, O.E. (1985), The Economic Institutions of Capitalism. New York: Simon and Schuster.Google Scholar
- World Trade Organization [WTO] (2012), Country Documents, https://www.wto.org/english/tratop_e/trips_e/intel6_e.htm [accessed June 2015].