Abstract
Studies on innovation have drawn the attention of the researchers. This paper discusses intellectual property rights as an innovation approach adopted by software product firms and its influence on the performance of these firms. The objective of the paper is to examine the influence of intellectual property rights practices on firm performance. The methodology comprises two steps. First, all the variables relevant to practices of open innovation with respect to IPR are identified. Subsequently, primary data is gathered from decision makers of 213 SMEs. IBM SPSS is the statistical tool employed and robust statistical technique such as ordinal logistic regression analysis is performed to test the hypothesis. The result shows that purchasing of intellectual property rights influences firm performance with respect to overall performance and more product development.
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