Outsourcing and licensing strategies in small software firms: evolution of strategies and implications for firm growth, internationalisation and innovation

Current literature contains extensive results on the possibilities for capitalising different outsourcing strategies. However, previous research suffers from shortcomings on how these overall possibilities and benefits of outsourcing apply to the context of small and medium sized companies in several industries, and in particular, how the outsourcing strategies correlate to a firm's overall strategy during different phases of growth. Through the theoretical structuring and empirical analysis of six small and medium sized software companies and a total of 14 outsourcing or licensing projects, this article provides evidence and further develops the current theory-base on how small computer software companies are able to capitalise on and benefit from using external research-oriented product development related resources during different stages of their growth process. The results of this article are composed into a framework introducing propositions and testable hypotheses for future research.