Abstract

In recent years, patents have become widely popular for protecting software-based business methods. However, the IS literature has yet to consider the potential influence of patents in the IS-firm performance relationship. At the same time, the resource-based view (RBV) of the firm has proven to be a useful lens through which to examine the IS-firm performance relationship. In organizational strategy literature, various measures of patents are frequently utilized as proxies for components of the RBV or as the dependent variable in RBV studies. Following in this vein, the purpose of the current study is to examine whether software-based business method patents fit the definitions prescribed in the RBV and if such patents can be empirically connected to a firm’s performance.

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