Supplier encroachment and patent licensing strategy in technology-intensive supply chains
Supplier encroachment in technology-intensive supply chains is an emerging and important research topic in communication technology. In order to assess the impact of patent licensing on supplier encroachment and firms' performance, we model a technology-intensive supply chain comprising a compo...
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| Format: | Article |
| Language: | English |
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KeAi Communications Co., Ltd.
2025-03-01
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| Series: | Journal of Management Science and Engineering |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2096232024000465 |
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| author | Qing Zhang Junyan Zhang Di Wang Yunling Zhang Chenglin Ma |
| author_facet | Qing Zhang Junyan Zhang Di Wang Yunling Zhang Chenglin Ma |
| author_sort | Qing Zhang |
| collection | DOAJ |
| description | Supplier encroachment in technology-intensive supply chains is an emerging and important research topic in communication technology. In order to assess the impact of patent licensing on supplier encroachment and firms' performance, we model a technology-intensive supply chain comprising a component supplier holding patents and a product manufacturer. The patent-licensing fee to the retailer is charged either via a component-based strategy (Strategy C), i.e., a percentage of the component price, or a product-based strategy (Strategy P), i.e., a percentage of the final-product price. The supplier decides whether to encroach into the market. Our research illustrates that compared with Strategy C, Strategy P allows the supplier to take a share of the manufacturer's market revenue, thus discouraging the supplier from encroachment. Counterintuitively, we find that the supplier prefers to Strategy C when the sales cost is relatively high and the royalty rate under Strategy P is relatively low, and the manufacturer prefers to Strategy P when the sales cost is relatively low or moderate. We also reveals that under certain conditions, the preferences of the supplier and manufacturer for licensing strategies can align with both strategies C and P providing better economic benefits to both parties. |
| format | Article |
| id | doaj-art-6edc7ba4df9748f4b2ca2ba221ce12ce |
| institution | OA Journals |
| issn | 2096-2320 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | KeAi Communications Co., Ltd. |
| record_format | Article |
| series | Journal of Management Science and Engineering |
| spelling | doaj-art-6edc7ba4df9748f4b2ca2ba221ce12ce2025-08-20T01:58:00ZengKeAi Communications Co., Ltd.Journal of Management Science and Engineering2096-23202025-03-0110111710.1016/j.jmse.2024.08.001Supplier encroachment and patent licensing strategy in technology-intensive supply chainsQing Zhang0Junyan Zhang1Di Wang2Yunling Zhang3Chenglin Ma4College of Management and Economics, Tianjin University, Tianjin, 300072, China; Research Center for National Intellectual Property Strategy Implementation of Tianjin University, Tianjin University, Tianjin, 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin, 300072, China; Research Center for National Intellectual Property Strategy Implementation of Tianjin University, Tianjin University, Tianjin, 300072, ChinaSchool of Management Science and Engineering, Shanxi University of Finance and Economics, Taiyuan, 030006, ChinaCollege of Management and Economics, Tianjin University, Tianjin, 300072, China; Research Center for National Intellectual Property Strategy Implementation of Tianjin University, Tianjin University, Tianjin, 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin, 300072, China; Corresponding author.Supplier encroachment in technology-intensive supply chains is an emerging and important research topic in communication technology. In order to assess the impact of patent licensing on supplier encroachment and firms' performance, we model a technology-intensive supply chain comprising a component supplier holding patents and a product manufacturer. The patent-licensing fee to the retailer is charged either via a component-based strategy (Strategy C), i.e., a percentage of the component price, or a product-based strategy (Strategy P), i.e., a percentage of the final-product price. The supplier decides whether to encroach into the market. Our research illustrates that compared with Strategy C, Strategy P allows the supplier to take a share of the manufacturer's market revenue, thus discouraging the supplier from encroachment. Counterintuitively, we find that the supplier prefers to Strategy C when the sales cost is relatively high and the royalty rate under Strategy P is relatively low, and the manufacturer prefers to Strategy P when the sales cost is relatively low or moderate. We also reveals that under certain conditions, the preferences of the supplier and manufacturer for licensing strategies can align with both strategies C and P providing better economic benefits to both parties.http://www.sciencedirect.com/science/article/pii/S2096232024000465Technology-intensive supply chainSupplier encroachmentPatent licensingComponent-based strategy (Strategy C)Product-based strategy (Strategy P) |
| spellingShingle | Qing Zhang Junyan Zhang Di Wang Yunling Zhang Chenglin Ma Supplier encroachment and patent licensing strategy in technology-intensive supply chains Journal of Management Science and Engineering Technology-intensive supply chain Supplier encroachment Patent licensing Component-based strategy (Strategy C) Product-based strategy (Strategy P) |
| title | Supplier encroachment and patent licensing strategy in technology-intensive supply chains |
| title_full | Supplier encroachment and patent licensing strategy in technology-intensive supply chains |
| title_fullStr | Supplier encroachment and patent licensing strategy in technology-intensive supply chains |
| title_full_unstemmed | Supplier encroachment and patent licensing strategy in technology-intensive supply chains |
| title_short | Supplier encroachment and patent licensing strategy in technology-intensive supply chains |
| title_sort | supplier encroachment and patent licensing strategy in technology intensive supply chains |
| topic | Technology-intensive supply chain Supplier encroachment Patent licensing Component-based strategy (Strategy C) Product-based strategy (Strategy P) |
| url | http://www.sciencedirect.com/science/article/pii/S2096232024000465 |
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