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Investigates the relative effects of organizational and managerial factors on the firm′s propensity to acquire new technology through licensing from foreign non‐affiliated companies. Aims to contribute to the literature on the role of international licensing in the firm′s technology strategy by examining both licensee and non‐licensee firms. Finds that the two sets of factors make different but complementary contributions to the firm′s propensity to licence‐in foreign technology,with the managerial factors having far greater impact than the organizational factors. In addition, the individual factors have significantly different effects on the propensity to adopt licensing by licensee and non‐licensee firms in the sample. The results suggest that international licensors who look at both sets of factors in screening and selecting prospective licensees are more likely to be successful than those who look at one set of factors alone.

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