The Role of External Technology Acquisition in Product Development: Attitude‐Behaviour Inconsistency Among Small Firms Available to Purchase

For many small firms, buying technology through licensing has long been regarded as a major route to successful new product development. However, little research aimed at comparing the attitudes of small firms towards buying technology through licensing has been conducted. Using both univariate and multivariate analysis, this article reports an empirical study comparing the characteristics and perceptions of 81 Australian licensee and 107 nonlicensee small firms towards buying technology from international nonaffliated firms. Surprisingly, small nonlicensee firms are found to scan international technology developments more than their licensee counterparts. In addition, whereas nonlicensee firms have higher perceptions of the costs of technology licensing than licensees, paradoxically they also appear to have higher perceived benefits than licensees. Based of this inconsistency between attitude and behavior four types of firms are proposed — active/satisfied licensees, passive/dissatisfied licensees, potential licensees and nonlicensee firms. Theoretical and managerial implications of the results are discussed.