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Optimal knowledge outsourcing model

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Author Info
Gavious, Arieh
Rabinowitz, Gad

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Abstract

Every organization controls its investments in the development and maintenance of internal knowledge (IK) as opposed to outsourcing this effort, namely, consuming external knowledge (EK). A number of factors involved in this decision, such as the IK learning curve, its associated holding cost, value deterioration rate, value of future IK or cost of purchasing EK. This study proposes a dynamic optimal control model for examining the properties of this problem. Optimal control strategies and steady-state conditions are identified for a number of special cases. Some insightful observations are obtained by studying the solution sensitivity to the underlying assumptions.

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File URL: http://www.sciencedirect.com/science/article/B6VC4-49KSMK7-2/2/77549e2a5bc9dd2ded59e265bb338bbe
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Publisher Info
Article provided by Elsevier in its journal Omega.

Volume (Year): 31 (2003)
Issue (Month): 6 (December)
Pages: 451-457
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Handle: RePEc:eee:jomega:v:31:y:2003:i:6:p:451-457

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Related research
Keywords: Knowledge management Maintenance management Optimal control;

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This page was last updated on 2009-11-7.

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