Licensing Versus Joint Venture : An Analysis of Choices by Singaporean Small- and Medium-Sized Enterprises

In this study, we will examine how Singaporean small and medium-sized enterprises (SMEs) choose between two different alliance types—specifically licensing versus joint ventures. The two alliance types are distinct, with the former being a low commitment and low rewards option and the latter a high commitment, high rewards option. We hypothesize that Singapore SMEs with stronger capabilities are more likely to prefer joint ventures over licensing than SMEs with weaker capabilities. We further hypothesize that Singapore SMEs with more internationally oriented management, are likely to choose joint ventures over licensing. Based on analyses of survey data obtained from 59 Singapore SMEs, we find support for both our predictions