Wholly owned subsidiary versus technology licensing in the worldwide chemical industry
AbstractThis paper empirically analyzes the determinants of the choice between wholly owned subsidiary and technology licensing as a strategy for expansion abroad. We use a new and comprehensive database on worldwide plant level investments in the chemical industry during the 1981-1991 period. We find that both cultural distance and the presence of other potential licensors favor the use of licensing as a strategy for expanding abroad, whereas, prior experience favors the choice of wholly owned subsidiary. An implication of this study is that competition in the market for technology can foster the international diffusion of technology through the use of arm's length agreements.
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Bibliographic InfoPaper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/13457.
Length: 574 p.
Date of creation: 2000
Date of revision:
Publication status: Published in Journal of International Business Studies (2000) v.v. 31, p.555-572
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Web page: http://www.uc3m.es
Strategic planning; Licensing; Globalization; Foreign investment; Chemical industry;
Other versions of this item:
- Ashish Arora & Andrea Fosfuri, 2000. "Wholly Owned Subsidiary Versus Technology Licensing in the Worldwide Chemical Industry," Journal of International Business Studies, Palgrave Macmillan, vol. 31(4), pages 555-572, December.
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