Choice of foreign licensees: Information and communication technology firms

Youngjun 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

Keywords

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

ASJC Scopus subject areas

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

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