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Kam B. Chung, Nanyang Technological University, Singapore

Abstract

Exploiting technology as a strategy for business expansion by small manufacturing firms (SMFs) is analysed. Technological advancements from innovations is currently recognized as an important element of industrial competition. As substantial resources and risks are involved, the SMFs should strive to leverage on their innovations- development effort in order to derive a higher return from such technological investments. The sale of technology through outward licensing is one such move. However, for SMFs from a small, advanced developing economy, this move simultaneously compounds the daunting process of the exploitation of technological innovations with that of the internationalization of business. Importantly, venturing in this direction compels a SMF to critically define its basic strength and to stretch its resources beyond the frontiers of its normal operations. On this score, SMFs face four problems: that of overcoming entrepreneurial naiveté; of broadening their scope and perspective on technology; of building on expertise and credibility; and of enhancing experience and responsibility. Responses to these problems can be framed by addressing the underlying economic and strategic issues. The conclusion remarks that with the right approach and appropriate support, such ventures can indeed be rendered viable.

 Licensing the Technologies of the Small Manufacturing Firm: A Strategic Analysis