ABSTRACT
The work is centered on the effect of IP management on Performance of selected Manufacturing Firms in South East Nigeria. The objectives of the study are; To determine the extent to which protection of intellectual property through trade mark affects the market share in manufacturing firms in the south east Nigeria; To ascertain the degree to which patents induce creativity in manufacturing firms in the same zone; To establish the level to which intellectual property protection fulfills its mission in manufacturing firms; To analyze the various risks involved in intellectual property registration to see if they are higher than expected benefits; To find out the extent to which corporate managers are involved in the management of intellectual property portfolio in their firms and the implications of their involvement especially in the south east Nigeria. The location of the study is the South East Nigeria comprising of Abia, Anambra, Ebonyi, Enugu and Imo states. Seven selected firms were used for the study and they consist of a population of 2258 employees. Exuastive sampling technique was applied to the managerial cadre of the population. Out of the total population, the managerial staff is made up of 644 employees out of whom 604 were qualified to be used for the empirical study. The companies are; Pittasson Industries Ltd., Alo Aluminium Manufacturing Industry Nig ltd, Hardis and Dromedas Ltd, General Cotton Mill Ltd, Ofali Rural Industries Ltd, and Jacobs Wine Nigeria Ltd. Primary data were collected through questionnaire structured in 5 point Likert scale and were complemented with oral interview. Again, secondary data were collected through findings from available literature from works of other authors. Analysis of the data was done using statistical tools of Chi Sq, Pearson Product Correlation Coefficient and Z test used to compare the sample and population mean. Other tools like frequency tables, percentages and statistical package for social science research (SPSS) were also adopted. Hypotheses 1 and 5 are to be tested with Friedman Chi square. This tool is commonly used to compare observed data and expected data. Hypothesis 2 and 3 are to be tested with Pearson Product Correlation Coefficient Hypothesis 4 will be tested with the z-test. The z-test tool compares sample and population means to determine if there is a significant difference between the variables.This is seen in the statistical significance of (X2c =19.016, p,< .05). Secondly, patents rights induce creativity in manufacturing firms, (r =. 955, P<.05).Intellectual property fulfills its mission in manufacturing firms r = .728 > r= .195 Thus (r =.728, P<.05) It was also discovered that management of intellectual property is usually done by legal practitioners, (xc2 = 213.932>xt2 =26.30). Also discovered is the fact that, when intellectual property rights are used together with other forms of protection, it yields maximum benefit. Lastly, the benefits that are accruable by the use of intellectual property are higher than the risks involved in IP registration, (Zc =11.517>Zt = 1.96). The study then concludes that contrary to the seemingly believe that protection of IP through the use of IPR does not contribute to an organizations success, it does actually positively impact on the organizations performance to a significant level. The recommendation therefore is that firms should in addition to other strategies, recognize their intellectual properties, and adopt the use of IP rights to protect them. Another recommendation is that IP should be managed strategically by the right personnel which from the findings of the author are the corporate managers.
TABLE OF CONTENTS
Declaration i
Approval ii
Dedication iii
Acknowledgements iv
Abstract v
List of tables vi
List of figures vii
CHAPTER ONE:
INTRODUCTION
1.1 Background of
the Study 1
1.2 Statement of the Problem 7
1.3 Objectives of the Study 11
1.4 Research Questions 12
1.5 Research Hypotheses 12
1.6 Significance of the Study 13
1.7 Scope of the
Study 13
1.8 Profile of Selected Organizations 14
1.9 Operational Definition of Terms 18
References 20
CHAPTER TWO: REVIEW
OF RELATED LITERATURE
2.0 Introduction 22
2.1 Conceptual Framework 22
2.1.1 Concepts of Intellectual Property 22
2.1.2 Concepts of Intellectual Property and Performance 23
2.1.3 Concepts of Intellectual Property as an Intangible Asset 28
2.1.4 Concepts of Intellectual Property Rights and the importance of its Protection 29
2.1.5 Intellectual Property Rights and Policies 31
2.1.6 The Role of
Intellectual Property in the Innovation Process 35
2.1.7 The Role of
Intellectual Property in the Innovation Process
38
2.1.8 The Concept of
Knowledge: Knowledge Flows,
Creativity and Innovation 40
2.1.9 The Concept of Management 44
2.1.10 Concept of Manufacturing Companies 48
2.1.11 Management of Intellectual Property as an Intangible Asset 50
2.1.12 The Decision to Innovate 52
2.1.13 Intellectual Property Valuation 54
2.1.14 How can
Intellectual Property Enhance the Market Value of your
Manufacturing Firms? 55
2.1.15 Types and
Functions of Intellectual Property Rights 56
2.1.16 Industrial Design 57
2.1.17 Patent 58
2.1.18 Trade Mark 59
2.1.19 Trade Secret 60
2.1.20 Copy Right 60
2.1.21 Traditional Knowledge 62
2.1.22 Geographical Indications (GI) 62
2.1.23 Economic Value of Intellectual Property 63
2.1.24 Assessment and Control of Intellectual Property in Nigeria 65
2.1.25 Intellectual Property Theft in Organizations; who they are and when they steal 66
2.1.26 The World Intellectual Property Organization (WIPO) 72
2.1.27 World Trade Organization (WTO) 72
2.2 Theoretical Review 72
2.2.1 Theoretical Perspective 72
2.2.2 Theories of Intellectual Property 73
2.2.3 Theories of Performance 76
2.3 Empirical Review 81
2.4 Conceptual/Theoretical Framework 108
2.5 Gap in Literature 111
2.6 Contribution to Knowledge 112
References 114
CHAPTER THREE:
METHODOLOGY
3.1 Introduction 125
3.2 Research Design 125
3.3 Sources of Data 126
3.4 Population of the Study 127
3.5 Sample Size Determination 127
3.6 Research Instrument 128
3.7 Sampling Technique: 129
3.8 Data Analysis Technique 129
3.9 Validity of the Research Instrument 129
3.10 Reliability of the Research Instrument 130
References 131
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction 132
4.2 Data Presentation and Analysis 132
4.3 Oral Interview Analysis 149
4.4 Test of Hypotheses 152
4.5 Discussion of Findings 158
4.6 Discussion of Findings Relating to the Objectives 160
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
- Summary of Findings 167
- Conclusion 168
- Recommendations 169
- Limitations of the study 170
- Suggestion for further studies 171
Bibliography 172
Appendixes
185
LIST OF TABLES
Table: 2.1 Estimated Proportions of Firms that always usually or frequently need to make Unofficial Payments; by Firm Size 50
Table 2.2 Showing Number of patents Registration and Percentages of Countries 68
Table 2.3 Number of patents Applications for Africa, Canada, Japan, United Kingdom and United States for year 2000 to 2011 69
Table 2.4: Representing the Relative percentages of
Patent Registration of each Country with Africa being less than 1% 71
Table 3.1 Organisations and Number of Employees. 127
Table 3.2: Managerial Cadre of the Firms under Study. 128
Table 4.1 Distribution on the Response and Non Response Rate of the Instrument Administered 132
Table 4.2 Distribution of the Respondent’s Gender (Male/ Female) 133
Table 4.3 Marital Status of Respondents 133
Table 4.4 Age Distribution Table 134
Table 4.5 Educational Background of Respondent 135
Table 4.6 Duration of Service of Respondents in the Firms 135
Table 4.7 Management Cadre Distribution Table 136
Table 4.8 Trade mark, Copyright, Patent and Market Change 137
Table 4.9 Brand Signature and Market Strength 137
Table 4.10 Performance Track and Intellectual Property 138
Table 4.11 Trademark, Copyright, Trade Secret and Imitation 138
Table 4.12 IPR and Market Index 139
Table 4.13 Industrial Designs, Non-Disclosure and Market Share 139
Table 4.14 Patent Law and Technology Innovation 140
Table 4.15 Patent Rights, Innovation and Technology 141
Table 4.16 Research and Development Departments and Creation 141
Table 4.17 IPR Acquisition, Invention versus Improved Performances 142
Table 4.18 IPR and Firms Mission 142
Table 4.19 Intangible Assets versus Exclusive Right 143
Table 4.20 Profit, Market Share and Sustainability 143
Table 4.21 Trademark, Brand Signature and Firms Success 144
Table 4.22 Profit and Copy Right 145
Table 4.23 IP Risks and Benefits 145
Table 4.24 Creation, Invention Innovation and Intangibles 146
Table 4.25 Creation, Invention, Innovation and Performance 146
Table 4.26 Cost of Registration versus Benefit 147
Table 4.27 Corporate Managers versus IP Management 148
Table 4.28 IP Portfolio Management and Legal Practitioners 148
Table 4.29 IP Portfolio Management and Strategic Management 149
Table 4.30 Creation and Recreation versus Management 149
Table 4.31 Mission, Vision, Goal and Performance 150
Table 4.32 R&D versus Growth 150
Table 4.33 Oral Interview Distribution 151
Table 4.34 Analysis of Oral Interview 154
Table 4.35 Chi-square Test 155
Table 4.36 Descriptive statistics 156
Table 4.37 Correlation 156
Table 4.38 Descriptive statistics 157
Table 4.39 Correlation 157
Table 4.40 Descriptive Statistics for Hypothesis 4 158
Table 4.41 One Sample Kolmogrove Smirnove Test 160
Table 4.42 Chi Square Test for Hypothesis 5 160
LIST OF FIGURES
Fig: 2.1 Performance Management Cycles 47
Fig: 2.2 IP Management Framework 51
Fig: 2.3 Types of IP Rights 57
Fig: 2.4 Line
Graph Representing the Patent Registration of IP in the
Countries Mentioned. 69
Fig: 2.5 Bar Chart Representing the Patent Registration of IP in the Countries Mentioned 70
Fig 2.6 Model Plan to Facilitate Intellectual Property Management for Improved Performance 113
Fig: 4.1 Bar Chart of Distribution Response 131
Fig 4.2 Bar Chart for Gender Distribution 132
Fig 4.3 Marital Statuses of Respondents 133
Fig 4.4 Bar Chart Representing the Educational Background of Respondents 134
Fig 4.5 Bar Chart for Management Cadre Distribution 136
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Since the beginning of 20th century, the world
has witnessed astronomical advancement in scientific and technological
innovation which has changed the face of modern society. Innovation has become
the key driver of economic growth and development in both medium term and long
term. Kubis(2011) defines innovation as the process of introducing new
products, and services, and production process into the marketplace and
creating new profitable enterprises and higher paying jobs on this basis. The popular
documentary on “Cable Network News” of Make, Create and Innovate” is one
of the indications of the importance of innovation in today’s world. Even the
most read book in the world; the holy Bible establishes it in King James Translation
of Revelation, 21: 5; “Behold, I make all things new”. Innovation
is thus about having new ways of doing things which usually will emanate from ideas
generated by individuals and groups of individuals in their various works of
life and even in their everyday life. When these ideas are put into use or into
tangible items for use in creation of wealth and other economic value, they
become Properties of Intellect.They are thus called Intellectual Property (IP).
The term Intellectual Propertycame to lime light in the 19th
century. By late 20th century, it became a common place in US
literature. Nevertheless, Grant(2010)notes that, the usage of the term goes
back as far as 1893, at the founding of Swiss federal office for intellectual
property. The Paris convention for protection of industrial property (1883) and
Berne convention for protecting of library and artistic work (1886) both were
separate administrative offices that merged in 1893 and adopted the term
intellectual property in their new title (Ige, 2000). Prior to that adoption,
towards the end of the 19th century, inventive new ways of
manufacturing helped trigger large scale industrialization accompanied by such
phenomena as rapid city growth, expansion of railway network, investments of
capital and growing trade transaction.
Idris(2012) states that the invention of movable typing and printing
press by Johamas Gutenberg around 1440 contributed to the birth of the first
copyright system in the world. Sople,
(2010) explains that Trademarks are believed to date back to at least
3500 years when potters’ marks were used to identify the source of earthen
pots. However, jurisdiction and statutes for the protection of trademarks
appear to date back to only 350 years, i.e. seventeenth century in England.
Right from the medieval to several years over, intellectual
property started developing. In Roman times, it was common for pottery to be
embossed or impressed with a mark, for example a representation of a dolphin or
the maker’s initial. Merchant’s marks were used in commerce in Britain from the
thirteenth century. William Caxton used the mark W74C, in his Gold and Silver
articles and these were hallmark as early as the fourteenth century. By the end
of the sixteenth century it was very common for shopkeepers to erect signs
illustrating their trade (Nwokocha, 2012). Traders took to using cards bearing
their name and address, often accompanied by a device of some sort, an early
form of what we have today as business card. The industrial revolution saw an
enormous growth in the use of names and marks in advertising and thus modern
trade mark was born. This marked the early development of the modern Trademark
Law.
In the area of patent, the first recorded patent for an
industrial invention was granted in 1421 in Firenze, Italy to Architect and
Engineer Filippo Brunelleschi. The claim was that he had thought of a better
method for transporting goods on the River Aron. He undertook with the
Florentine authorities that to divulge details of his new invention he would be
granted a monopoly in respect of the exploitation of the invention within
Firenze for a number of years (Nwokocha, 2012). After this, any person would be
free to exploit the invention or introduce further improvements to the
technology.
