Institutional targeting in patent enforcement

We seek to advance research on the targeting of specific institutional venues by firms as part of their non- market strategies, specifically linking these institutional targeting decisions to the long tradition of scholarship on firm-environment fit. We propose a theory where firms choose between specialized and generic institutions based on the fit with their prior market strategy decisions, the characteristics of their competitors, and their own capabilities. Using data on patent enforcement against foreign importers, we find support both for the hypothesized determinants of institutional targeting, as well as the causal mechanism (expectations about dispute settlement) that drives institutional targeting strategies in some contexts. Our research provides a direct empirical test for the proposition that firms derive benefits from the integration of their market and non-market strategies. Our findings also highlight how patent strategies are closely linked to the non-market institutions that define the property rights entailed in patents.