Licensing is not a good option if the competitive advantage of a firm is based upon managerial or marketing knowledge that is embedded in the routines of the firm or the skills of its managers, and that is difficult to codify in a "book of blueprints."

Question

Quizplus · Accepted Answer

Licensing may not be suitable when a firm's competitive advantage relies on tacit knowledge, which is hard to transfer or codify, as it may not be effectively communicated or protected through licensing agreements.

Licensing Is Not a Good Option If the Competitive Advantage