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Ownership-Specific Advantages
(redirected from Ownership Specific Advantages)

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Ownership-specific advantages
Property rights or intangible assets, including patents, trademarks, organizational and marketing expertise, production technology, and management and general organizational abilities, that form the basis for a company's advantage over other firms.

Ownership-Specific Advantages
Intangible assets in a company, such as intellectual property, property rights, brand recognition, and other areas. Owning the copyright to a superior product is an example of an ownership-specific advantage, as is an exceptionally good organizational system. Ownership-specific advantages are less quantitative ways a company is able to remain competitive against companies in the same industry. That is, the idea behind ownership-specific advantages states that there is more to competition that simply providing the best price. Intangibles also play a significant role.


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A higher foreign ownership level in IJVs allows MNEs to maximise the returns on ownership specific advantages, and to have full control and protection over business operations and proprietary assets.
Within the ownership specific advantages section of the theory, Dunning makes a distinction between what he calls Oa (property rights and/or intangible asset advantages) and Ot (transaction cost minimizing advantages).
14) A Cluster of Related and Supporting Firms There seems to be little interaction between the ownership specific advantages of the MNEs studied and the locational advantages arising from the clustering of value-added activities by both foreign and local firms.
 
 
 
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