A global consumer decision model of intellectual property theft

2019 ◽  
Vol 13 (4) ◽  
pp. 509-528
Author(s):  
James Reardon ◽  
Denny McCorkle ◽  
Anita Radon ◽  
Desalegn Abraha

Purpose Intellectual property theft amounts to billions of dollars per year worldwide. The first step in stemming this loss is to understand the underlying precursors of this behavior. This paper aims to propose and test a model of consumer choice to purchase or pirate intellectual property, specifically music. This paper combines and applies the theory of reasoned action (TRA) and Becker’s theory of crime to develop a more comprehensive model of digital piracy behavior. Culture was tested as an antecedent to the attitudes and the perceptions of risk associated with music piracy. Design/methodology/approach A survey of 4,618 participants was conducted across 23 countries. Construct measures were validated using confirmatory factor analysis in LISREL. A conceptual model was tested using logistic structural equation modeling in MPlus. Respondents were asked about the last music they acquired to test a behavioral model of music piracy. Findings The results indicated that culture, specifically rule orientation and uncertainty avoidance, had a significant impact on attitudes toward the music industry, ethical perceptions of music piracy and risk perceptions. Respondents’ ethical perceptions of downloading had the highest impact on music piracy behavior. The personal/copy risk associated with the illegal downloading of music had a significant impact while the relative channel risk did not. The market value, quality and selection also had a significant impact on downloading behavior, as did the respondent's ability to find and download music. Research limitations/implications While this paper was limited by focusing on the illegal downloading of music, the results can provide guidance in the design of future research concerning the piracy and unlicensed downloading of other types of intellectual properties such as movies/videos, TV, paywall content and e-books. Practical implications In recent years, improved access to music and video through online streaming and online stores has significantly decreased music piracy. This research indicated that further inroads into this behavior could be made through better online purchase access and through consumer education about the ethics and results of digital downloading. Further, efforts are more efficient by targeting cultures with lower levels of rule orientation with ethics education and targeted risk messages in countries with higher uncertainty avoidance. Social implications Yearly losses to the music industry amount to about $5-29bn. Many find music and video downloading and “sharing” as acceptable. The model developed in this research has implications to affect this mass loss of revenue to the music industry and perhaps the societal view of downloading behavior that is illegal but commonly accepted. Originality/value This model is the first to integrate cultural aspects into models of digital piracy. In addition, the model is developed from a strong theoretical base (TRA and Becker’s theory of crime) to integrate multiple antecedents to intellectual property theft research.

Author(s):  
Claire R. La Roche ◽  
Mary A. Flanigan ◽  
Melanie B. Marks

<p class="MsoBodyText" style="text-align: justify; line-height: normal; margin: 0in 0.5in 0pt;"><span style="color: black; font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">In the age of digital technology, perfect copies of sound recordings may be easily made and shared in violation of copyright law.<span style="mso-spacerun: yes;">&nbsp; </span>Music piracy in the form of illegal downloading is a worldwide phenomenon that has a significant impact on the music industry.<span style="mso-spacerun: yes;">&nbsp;&nbsp; </span>In response to the perceived threat to the music industry, lawsuits have been filed in the United States and abroad based on copyright infringement for illegally downloading music. This paper examines copyright law, case law, and recent litigation.<span style="mso-spacerun: yes;">&nbsp; </span>In the wake of legal efforts to curtail illegal downloading, a survey of 112 undergraduate students was conducted in an effort to determine whether the lawsuits filed by the music industry are a deterrent to downloading music.<span style="mso-spacerun: yes;">&nbsp; </span>Potential solutions are proposed and economic consequences discussed.</span></span></p>


Significance Sharp rhetoric from President Donald Trump and his officials is raising the prospect of a trade war. Following a year of false alarms and intra-administration conflict, signs point to escalation of the increasingly protectionist US agenda, particularly towards China. Impacts The seventh NAFTA round will begin on February 26 -- services market access and the dispute settlement mechanism are the trickiest topics. Even if there is a NAFTA deal, it could struggle to pass Congress. China is ready to retaliate, both against prospective steel and aluminium tariffs and any punishment for intellectual property theft.


2014 ◽  
Vol 41 (9) ◽  
pp. 801-819 ◽  
Author(s):  
Mahalia Jackman ◽  
Troy Lorde

Purpose – Digital piracy is one of the most popular forms of intellectual property theft and is currently recognized as a crime in several countries. This begs the question, if persons are fully informed that digital file sharing is a crime and, if caught, can be legally prosecuted, why do individuals opt to engage in such criminal behaviour? The purpose of the paper is to determine the psychological, social and economic factors influencing digital piracy. Understanding the social and psychological features of digital pirates is necessary if effected strategies are to be developed to deter the practice of digital piracy. Design/methodology/approach – In this paper, a representative sample drawn from the population of Barbados was surveyed. The conceptual models were estimated using ordinary least squares multiple regression, Tobit estimation and quantile regression. Findings – The results suggest that intentions and willingness to pay (WTP) both have a significant impact on digital piracy. Intentions are in turn influenced by the pirate's attitude, perceived consequences, ethics, education level and environment. Finally, a facilitating environment and perceived importance of the piracy issue help to predict’ WTP for digital products. Originality/value – To the best of the knowledge, no other study has combined notions from attitude/values/behaviour with that of WTP. Yet, the literature would suggest that they both have significant impacts on the quantity of digital goods that are pirated. It is possible that not modelling their joint impact could have resulted in loss of vital information.


2019 ◽  
Vol 14 (1) ◽  
pp. 21-30 ◽  
Author(s):  
Sigitas Urbonavicius ◽  
Vytautas Dikcius ◽  
Karina Adomaviciute ◽  
Ignas Urbonavicius

Purpose Movie piracy is triggered by the release delay of new movies in various countries, especially if novelty awareness is considered an asset among peers. Therefore, novelty seeking becomes a relevant factor in the illegal downloading of movies, especially among a younger population that has a higher propensity to novelty seeking. The purpose of this paper is to study novelty seeking in the context of illegal downloading of movies among a young population. More specifically, this study will highlight the relation of novelty seeking with the frequency of illegal downloading of movies and attitudes towards piracy in general. Design/methodology/approach The study is based on data that were obtained via survey in Lithuania. The use of SEM allowed development of a model that integrates novelty seeking with the more typical factors of digital piracy. Findings The study shows a relation between novelty seeking, attitudes towards piracy and the frequency of illegal downloading of movies. Originality/value The study shows the importance of novelty seeking in the context of movie piracy. It specifies the relation of novelty seeking with attitude and behaviour, highlighting directions for further research.


2017 ◽  
pp. 171-200
Author(s):  
Thomas J. Holt ◽  
Adam M. Bossler ◽  
Kathryn C. Seigfried-Spellar

2019 ◽  
Vol 31 (3) ◽  
pp. 670-690 ◽  
Author(s):  
Muhammad Kashif Javed ◽  
Ma Degong ◽  
Talat Qadeer

Purpose Most business-related studies on ethics focus on consumers in developed western economies but ignore developing economies. Therefore, to fill this void in the literature and address the concerns of prior studies, the purpose of this paper is to examine the ethical perceptions of Chinese consumers as an example of effective and efficient management of company/brand strategies in an economy experiencing rapid socioeconomic growth. Design/methodology/approach This study examines 328 Chinese consumers’ purchase intentions based on their ethical perceptions toward Apple and P&G through mediating (i.e. consumer–corporate identification (CCI) and brand trust) and moderating (i.e. consumer gender, age, education and residence) effects. Structural equation modeling is used to analyze the constructs and overall model. Findings The ethical perceptions of consumers translate into purchase intentions, both at the corporate and product brand levels. Similarly, a significant direct relationship between CCI and brand trust reveals that corporate-level ethical identification is a trivial matter to customers, although these perceptions do apply to product brands under a corporate umbrella. Furthermore, to identify target groups of Chinese consumers who are receptive to ethical appeals, moderating variables were found to be useful. Originality/value The results confirm that the mediating role of CCI is more influential in the context of Chinese consumers’ ethical perceptions, followed by brand trust. In relation to demographics, ethical perceptions affect CCI and brand trust more positively in females and highly educated consumers in China. Similarly, the relationship between consumers’ ethical perception and their trust in brand is revealed more influential in urban residents than they do in rural. This broadens the applications and contexts of this research model. The results provide managerial guidance on enhancing potential ethical perceptions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francisco-Jose Molina-Castillo ◽  
Elfriede Penz ◽  
Barbara Stöttinger

PurposeDemand for fake physical and digital products is a global phenomenon with substantive detrimental effects on companies and consumers. This raises various questions and issues, such as whether there are generalizable explanations of purchase intentions.Design/methodology/approachThis research is based on consumer samples from three different countries. This paper develops and tests a model based on the theory of planned behavior (TPB) to explain both the demand for counterfeits and digital piracy. Respondents were questioned about physical products (e.g. clothing, accessories) from well-known brands and digital products (e.g. software, music).FindingsSocially oriented motives such as embarrassment potential, ethical concerns and social norms explain the intention to purchase fake physical and digital products, while personally oriented motives (e.g. self-identity) have indirect effects but not a direct impact on purchase intention.Research limitations/implicationsAs our results show, we find evidence for a general model – contributing and supporting our first and primary research goal of providing a theoretically robust model that bridges the gap between two streams of literature.Practical implicationsThe fact that drivers of buying counterfeit physical and digital goods are similar across countries provides justification for companies and international organizations to bundle their efforts and thus leverage them more strongly on a global scale.Originality/valueWe provide a basis for consolidating future research on demand for counterfeits and pirated goods because underlying factors driving demand are similar across the three countries studied herein.


2018 ◽  
Vol 58 (7) ◽  
pp. 1301-1329
Author(s):  
Ali Raza ◽  
Moreno Muffatto ◽  
Saadat Saeed

Purpose The purpose of this paper is to clarify the relationship between entrepreneurial cognition and innovative entrepreneurial activity (IEA) across countries using an institutional perspective. Design/methodology/approach The paper tests theoretical model using data collected by the Global Entrepreneurship Monitor, the Global Leadership and Organizational Behavior Effectiveness study and the Index of Economic Freedom (IEF). A multi-level analysis is performed based on set of 1,004,620 observations from 49 countries spanning 13 years (2001–2013). Findings The results suggest that in terms of formal regulations; the relationship between entrepreneurial cognitions and IEA becomes stronger when there is an increase in intellectual property right and business freedom regulations in a country. On the other hand, in terms of informal institutions the relationship between entrepreneurial cognitions and IEA becomes stronger when the level of institutional collectivism and uncertainty decreases and performance orientation increases. Originality/value The study indicates that entrepreneurship by innovation increases when the individuals possess high level of entrepreneurial cognition under suitable institutional conditions (e.g. intellectual property right, business freedom, institutional collectivism, uncertainty avoidance and performance orientation).


2018 ◽  
Vol 23 (5) ◽  
pp. 497-512 ◽  
Author(s):  
Chao Miao ◽  
Ronald H. Humphrey ◽  
Shanshan Qian ◽  
Jeffrey M. Pollack

Purpose The topic of entrepreneurial intention, which refers to a person’s degree of interest in creating a new business venture, has received close scrutiny in the entrepreneurship literature. The empirical results regarding the relation between emotional intelligence (EI) and entrepreneurial intention were nevertheless mixed across studies. Based on fit theory and trait activation theory, the purpose of this paper is to explain the fundamental reason for the mixed findings in the extant literature thus far. Design/methodology/approach Random-effects meta-analyses, based on 12 studies (along with 12 effect sizes), were performed to not only investigate the overall relation between EI and entrepreneurial intention but also to examine the moderators (i.e. individualism (vs collectivism), masculinity (vs femininity), power distance, long-term orientation (vs short-term orientation), uncertainty avoidance, and indulgence (vs restraint)) that influence this relation. Findings The results of this meta-analysis demonstrated that EI is positively related to entrepreneurial intention; the positive relationship between EI and entrepreneurial intention is stronger in long-term-oriented cultures; and the positive relationship between EI and entrepreneurial intention does not significantly differ based on a culture’s level of collectivism, masculinity, power distance, uncertainty avoidance, and indulgence. Originality/value This meta-analysis advances the current understanding of the relation between EI and entrepreneurial intention from cross-cultural perspectives.


2019 ◽  
Vol 11 (1) ◽  
pp. 22-43 ◽  
Author(s):  
Jia Liu ◽  
Frida Thomas Pacho ◽  
Wang Xuhui

Purpose The purpose of this paper is to empirically explore the impact of culture (using individualism, power distance and uncertainty avoidance) on entrepreneurial risk taking behavior which leads to the opportunity exploitation decision. Moreover, it also uses risk taking behavior of entrepreneurial as the mediation variable between culture and opportunity exploitations decisions. Design/methodology/approach The study took place in Tanzania, which is allocated in East Africa and is one of under researched countries. In total, 140 entrepreneurs who own venture of 5-99 employees were able to be interviewed using a survey questionnaire. In this study, structural equation modeling (SEM) was used to examine the direct and indirect relationship of culture in entrepreneurial opportunity exploitation decisions. Findings After hypothesis testing, the empirical results showed that Tanzania’s culture has an impact on entrepreneurial risk taking behavior, which influences entrepreneurial opportunity exploitation decision. It also showed culture through individualism and uncertainty avoidance measurements affect entrepreneurial opportunity exploitation decisions. The empirical results on power distance were insignificant. Research limitations/implications This study is a wake-up call to policy makers and formal institutions such as government authorities, education institutions and religion institutions. Thus, culture has an ability to influence the behavior of entrepreneurs and so the performance of ventures if it is consistent and well structured. Therefore it should be not taken for granted. Data for our study are based on only two cities and therefore the results should not be generalized as the whole country’s inference. Generalizability is questioned because the data are from only two cities in Tanzania and therefore future research should include more cities to be able to validate the generalizability. Practical implications This study is a wake-up call to policymakers and formal institutions such as government authorities, education institutions and religion institutions. Thus culture has an ability to influence the behavior of entrepreneurs and so the performance of ventures if it is consistent and well structured. Therefore it should be not taken for granted. Data for our study are based on only two cities and therefore the results should not be generalized as the whole country’s inference. Social implications In the country which has well-structured culture, influence the behavior of entrepreneurs to exploit opportunities. Originality/value This is the first empirical study to use SEM for exploring the culture of individualism, power distance and uncertainty avoidance impact on entrepreneurial opportunity exploitation in Tanzania.


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