Choice of foreign licensees

Information and communication technology firms

Young Jun Kim

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Purpose - This paper aims to study the validity of potential factors that might affect US information and communication technology (ICT) holders' choice of foreign licensing partners. Design/methodology/approach - This study focuses on ICT industry. The sample firms for this study are drawn from the SDC by Thomson Financial and this sample was used to construct a data in which a unit of observation is the unique US licensor - foreign licensee pair, or a dyad. The hypotheses are tested using the random-effects logit model. Findings - The important explanatory factors relate to the knowledge appropriability and the level of economics freedom of a licensee's country, and familiarity between partners through prior licensing agreements. Market similarity between partners, however, appears to be an insignificant factor. Practical implications - The findings suggest that transaction cost, competition, and national absorb capacity considerations weigh in heavily in explaining firms' choice of foreign licensing partners. Originality/value - The paper makes an important contribution to licensing literature as the understanding of what drives partner choice is still sparse. Especially, the paper makes a uniqueness of dealing with international technology licensing.

Original languageEnglish
Article number17099520
Pages (from-to)1300-1314
Number of pages15
JournalIndustrial Management and Data Systems
Volume113
Issue number9
DOIs
Publication statusPublished - 2013 Nov 18

Fingerprint

Communication
Economics
Information and communication technology
Licensing
Costs
Industry
Factors
Logit model
Appropriability
Familiarity
Transaction costs
Random effects
Uniqueness
Economic freedom
Design methodology
Technology licensing
Dyads

Keywords

  • Information and communication technology
  • International technology licensing
  • Transaction cost

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Industrial relations
  • Strategy and Management
  • Management Information Systems
  • Computer Science Applications

Cite this

Choice of foreign licensees : Information and communication technology firms. / Kim, Young Jun.

In: Industrial Management and Data Systems, Vol. 113, No. 9, 17099520, 18.11.2013, p. 1300-1314.

Research output: Contribution to journalArticle

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