Factors affecting the effectiveness of measures taken by multinational companies against product counterfeiting in China

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Factors affecting the effectiveness of measures taken by multinational companies against product counterfeiting in China

 

Author: Sie, Kam-yung Agnes
Title: Factors affecting the effectiveness of measures taken by multinational companies against product counterfeiting in China
Degree: D.B.A.
Year: 2003
Subject: Hong Kong Polytechnic University -- Dissertations
Product counterfeiting -- China
Counterfeits and counterfeiting -- China
Department: Graduate School of Business
Pages: x, 181 leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1740417
URI: http://theses.lib.polyu.edu.hk/handle/200/2473
Abstract: Counterfeiting is a serious problem faced by many multinational companies (MNCs) operating in China. This protracted problem is due to a lack of adequate legislation (at least until China's accession to the World Trade Organization in December 2001) and the extremely lax enforcement of existing legislation on intellectual property rights (IPR). Hampered by a legacy of lethargic administrative and judicial systems, the uncertainty and complexity faced by managers in protecting and enforcing their IPR cannot be overestimated. From the literature review, scholars appear to share a common view that corporations must use/resort to their own tactics and measures to fight counterfeiters. Developing a model from the existing literature on anti-counterfeiting, it is hypothesized that awareness, enforcement, lobbying, monitoring, and modification tactics are related to the success of the anti-counterfeiting strategies adopted by MNCs in China. This study also explores how these relationships are affected by the perceived uncertainty created by the IPR environment in China. Finally, it examines whether the competitive position of the original brands affects the relationships. A total of 128 brands owned by MNCs were collected in China. There is some evidence that the anti-counterfeiting measures of the model have a predictive effect on the firms' success in stopping counterfeiters and limiting the impact of counterfeiting. Uncertainty is observed to have a number of significant interactions affecting the strength of the relationships. On the other hand, the result analysis does not support the moderating effect of competitive advantage. One revealing finding from the study is that despite their efforts to combat counterfeiting, MNCs still consider the threat increasingly outside their control.

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