Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Session Overview |
Session | ||
Track TH2-3: Governance, Organization, and Ownership
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Presentations | ||
From Fragility to Flexibility: How do Firms Respond to Upstream Technology Vulnerability? Tsinghua University We examine how upstream technology vulnerability affects downstream firms' reliance on supply chain relationships and their subsequent strategic responses. Using patent litigation as an idiosyncratic shock to technology vulnerability, we find that upstream patent litigation reduces downstream supply chain reliance by 6.46% in the following year (fragility). We identify three underlying mechanisms: legal risks associated with technology, delivery uncertainties, and reputation risks driven by market pressures. Our results remain robust when exploiting the staggered adoption of the U.S. anti-troll laws as a quasi-natural experiment. Moreover, we find that when upstream technology supply is disrupted, downstream firms shift toward in-house development. By increasing R&D investments and recruiting external inventors, these affected customer firms enhance their innovation capabilities, especially in the disrupted technological domains (flexibility). This enables them to better integrate the technological supply chain and achieve greater product diversification.
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