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Cited by 95Digital Platforms and EconomicsIntellectual Property and PatentsBusiness Strategy and Innovation

The evolution of cooperation in the face of conflict: Evidence from the innovation ecosystem for mobile telecom standards development

Jones, Stephen L., Leiponen, Aija, Vasudeva, Gurneeta·2021·Strategic Management Journal
DOI 10.1002/smj.3244
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Abstract

Research Summary: How does interfirm cooperation in innovation ecosystems evolve in the face of conflict? We theorize that conflict propels firms to reconfigure cooperative relationships while maintaining and even increasing cooperation with aggressors because cooperation is the primary mechanism for value creation in such ecosystems. To empirically test our arguments, we study patent litigation and subsequent cooperation between mobile telecommunications firms within the 3GPP standards development organization. We find evidence of a dual cooperative strategy in the face of conflict: while cooperation increases between litigants, defendants also enhance cooperation with others to steer standards away from aggressors. We also highlight the contingent roles of technological complementarities and relational position underpinning cooperation after conflict. Our findings demonstrate that in innovation ecosystems, cooperation with adversaries persists despite conflict. Managerial Summary: Firms in innovation‐driven industries cooperate to develop interoperability standards and compatible technologies. Yet, cooperative firms may disagree about what constitutes fair, reasonable, and non‐discriminatory terms for licensing intellectual property. Thus, conflict and patent litigation arise even as firms cooperate to build technologies and industry standards. We find that in innovation ecosystems, firms commonly increase cooperative efforts in response to conflict. Less‐connected firms or those with valuable complementary technologies will likely expand cooperation than well‐connected firms or technological competitors. Well‐connected firms may pursue alternative cooperative opportunities. We suggest that defendant firms' managers can adopt a dual cooperative strategy: (a) identify private and shared benefits from the joint development of complementary technologies with aggressors and (b) invest in alternative technological partnerships to influence the direction of future standards development.

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  • Interactions with boundary resources are often subject to standards, which can be either industry-induced or defined by the focal platform firm itself.

    “These interactions are often subject to standards, which can be either industry-induced or defined by the focal platform firm itself (Jones et al., 2021;McIntyre & Srinivasan, 2017).”

    From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Jones et al., 2021

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Authors
Jones, S. L., Leiponen, A., & Vasudeva, G.
Affiliations
  • University of Washington Bothell (US)
  • Cornell University (US)
  • University of Minnesota (US)
Corresponding author
Vasudeva, Gurneeta
ORCID
Venue
Strategic Management Journal
Publisher
Wiley
Published
2020-10-15
Volume
42
Issue
4
Pages
710-740
ISSN
  • 0143-2095 (ISSN-L)
  • 1097-0266
DOI
10.1002/smj.3244
OpenAlex
W3090430804
Cited by
95
References
73
Citations by year
2026: 18 · 2025: 13 · 2024: 23 · 2023: 17 · 2022: 17 · 2021: 6 · 2020: 1
FWCI
10.92
Type
journal article
Language
en
Open access
closed
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor)
Locations
Strategic Management Journal (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Intellectual Property and Patents
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategy and Innovation
Keywords
inter-firm cooperation, innovation ecosystems, conflict, patent litigation, 3GPP, standards development organizations, fair, reasonable and non-discriminatory licensing, technology complementarity, network position, cooperative strategy, interoperability standards, intellectual property

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