How SMEs work with IP management and IP Strategy: A case study on the impact of environmental factors on SMEs protection of intellectual property

Abstract

Society, and as an extension business, have in recent times become ever more digitized and technology driven. This shift from a resource-based economy to a knowledge-based economy has increased the importance of the management of intellectual property rights (IPRs) as a competitive advantage. In order to reap advantage from IPRs companies need to have a welldefined intellectual property (IP) strategy, which is connected to overall business objectives, as well as IP management practices that support that strategy. This is not an easy task for any company, but it is particularly difficult for small and medium-sized enterprises (SMEs) due to limited time, money, and resources. Against this background this case study aims to investigate how an SME in the mechanical automation industry works with IP strategy and IP management. The case study is of qualitative nature and is based on semi-structured interviews, review of literature, and documentary analysis at the host company. Specifically, the case study investigates the unique context in which the company operates and what internal and external factors shape strategy and management practices. The coding process in the interview study indicates that there are five concepts that influence IP management and strategy. These are product, relationship, industry, organization and process, and strategy, and because of the interdependent nature between the concepts it is important to investigate them in relation to one another. The findings are in line with previous SME literature on IP management that SMEs are at a disadvantage in comparison to larger companies. Moreover, the findings indicate that the IP management at the company of the study is largely influenced by its customized and project-orientation approach that naturally limits the possibility to work with a long-term IP strategy, but the business approach provides the opportunity to use other less formal protection mechanisms in regard to IP.