Product diversification through licensing: Empirical evidence from Chinese firms

Yuandi Wang, Lutao Ning () and Jin Chen

European Management Journal, 2014, vol. 32, issue 4, 577-586

Abstract: Anecdotal evidence suggests that manufacturing firms are able to engage in product diversification through external technology acquisitions, such as technology licensing. However, there is little empirical evidence regarding this proposition to link inward technology licensing and firms’ product diversification or to suggest when and under what conditions the effect of diversification through this channel may be mitigated or augmented. The current study aims to address this research gap through an empirical investigation of a sample of 141 Chinese manufacturing licensee firms. The results indicate that inward technology licensing is positively related to a firm’s diversification and that this relationship is further moderated by a licensee firm’s R&D expenditure and technological distance relative to the licensor firm.

Keywords: Product diversification; R&D expenditure; Technology licensing; Absorptive capacity; Technological distance; China (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:32:y:2014:i:4:p:577-586

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DOI: 10.1016/j.emj.2013.09.001

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