How small companies capture value from their intellectual property: a qualitative study

Abstract

AbstractInnovative small companies often struggle to profit from their intellectual property (IP) due to various constraints, a challenge that remains under-researched. In our analysis of seven Canadian firms, we illuminate the ways these businesses maximize IP value. In doing so, we proposed a nuanced, resource-based view (RBV) framework. This framework reveals that small business managers first evaluate resource deficiencies for specific IPs. Following this, they pinpoint and implement compensating strategies linked to organizational resources, distinct IP forms, and networks. Consequently, small firms can harness the full potential of IP by adeptly evaluating resource gaps and applying appropriate compensatory measures. Moreover, this study underscores that the value that small firms derive from IP depends on their capability to resolve deficiencies with effective strategies. These insights not only advance our understanding of IP value capture processes in small firms but also offer actionable guidance for businesses and policymakers aiming to bolster innovative ecosystems.RÉSUMÉLes petites entreprises innovantes ont souvent du mal à tirer profit de leur propriété intellectuelle (PI) en raison de diverses contraintes, un défi qui a été sous-étudié. Dans notre analyse de sept entreprises canadiennes, nous mettons en lumière la manière dont les entreprises maximisent la valeur de la propriété intellectuelle. Pour ce faire, nous avons proposé un cadre nuancé de vision basée sur les ressources (VBR). Ce cadre révèle que les dirigeants des petites entreprises évaluent d’abord les lacunes en matière de ressources pour des PI spécifiques. Ensuite, ils identifient et mettent en œuvre des stratégies de compensation liées aux ressources organisationnelles, aux formes distinctes de propriété intellectuelle et aux réseaux. En conséquence, les petites entreprises peuvent exploiter pleinement le potentiel de la propriété intellectuelle en évaluant habilement les lacunes en matière de ressources et en appliquant des mesures compensatoires appropriées. En outre, cette étude souligne que la valeur que les petites entreprises tirent de la propriété intellectuelle dépend de leur capacité à combler ces lacunes par des stratégies efficaces. Ces informations nous permettent non seulement de faire progresser notre compréhension des processus de captation de la valeur de la propriété intellectuelle dans les petites entreprises, mais offrent également des conseils utiles aux entreprises et aux décideurs politiques qui cherchent à renforcer les écosystèmes innovants.Keywords: Compensating mechanismsintellectual property (IP)small companiesresource-based view (RBV)value capture processMOTS CLÉS: Mécanismes compensatoiresPropriété intellectuelle (PI)Petites entreprisesVision basée sur les ressources (VBR)Processus de captation de la valeur Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationNotes on contributorsZiren WangZiren Wang obtained his degree of Master of Science in Management (MScM) from Toronto Metropolitan University in 2019. This article is an extension of his master’s thesis. Now he is an independent insurance advisor and he used to work as a senior capital analyst at the Government of Ontario.Sui SuiDr. Sui Sui is an Associate Professor at the Ted Rogers School of Management, Toronto Metropolitan University. Her research focuses on the internationalization trajectories of small businesses and entrepreneurs. This encompasses the impacts of strategies, resources, and inter-organizational elements on firm sustainability and expansion. Dr. Sui has earned accolades in distinguished academic journals and serves in editorial capacities for several publications. Beyond academia, she actively contributes to roundtable discussions with institutions such as the Bank of Canada and Global Affairs Canada, championing the aspirations of entrepreneurial ventures in the global arena.Horatio M. MorganHoratio M. Morgan is an Associate Professor of International Strategy and Entrepreneurship at the University of Waterloo’s Conrad School of Entrepreneurship and Business. His academic pursuits traverse the domains of international entrepreneurship, strategy, immigrant entrepreneurship, and entrepreneurial finance. A significant portion of his research delves into the role of owner and team dynamics in influencing firms’ international strategies and outcomes. His insights have graced the pages of premier journals, including the Journal of International Business Studies, the Journal of Business Venturing, and the Journal of Management. His work has also garnered attention from media platforms such as CBC News, Vancouver Sun, and Huffington Post Canada.Yu Wei YeYu Wei Ye is a Ph.D. student at the Ted Rogers School of Management, Toronto Metropolitan University. Her academic explorations encompass but aren’t confined to, the innovation strategies of Small and Medium-Sized Enterprises (SMEs) in today’s digitized, global context. Prior to her doctoral pursuits, Yu Wei amassed a rich tapestry of industry and managerial experience, showcasing her adeptness at global thinking and stakeholder engagement.