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 (X²_c =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 20^th 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 19^th century. By late 20^th 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 19^th 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.