Journal of the Academy of Marketing Science

, Volume 40, Issue 5, pp 659–672

Marketing control rights and their distribution within technology licensing agreements: a real options perspective

Original Empirical Research

DOI: 10.1007/s11747-011-0262-5

Cite this article as:
Boyd, D.E. & Brown, B.P. J. of the Acad. Mark. Sci. (2012) 40: 659. doi:10.1007/s11747-011-0262-5

Abstract

Technology licensing continues to gain popularity as firms seek new sources of revenue from their product development activities. A key decision for the licensor involves whether to distribute marketing control rights associated with licensed technology on a more or less restrictive basis. Drawing on the real options literature, this paper argues that factors related to the top management mindset of the licensor and the marketing capabilities of the licensee impact the licensor’s distribution decision. A logit analysis of 129 technology licensing agreements within the pharmaceutical industry provides strong support for the hypothesized variables and broadens researchers’ understanding of an important marketing decision related to innovation management and the design of inter-firm relationships.

Keywords

Marketing control rightsTechnology licensingManagement mindsetMarketing capabilitiesReal options theory

Copyright information

© Academy of Marketing Science 2011

Authors and Affiliations

  1. 1.College of BusinessJames Madison UniversityHarrisonburgUSA
  2. 2.College of BusinessVirginia Commonwealth UniversityRichmondUSA