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Optimal knowledge outsourcing model

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Author Info

  • Gavious, Arieh
  • Rabinowitz, Gad

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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Bibliographic 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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Cited by:
  1. Elitzur, Ramy & Gavious, Arieh & Wensley, Anthony K.P., 2012. "Information systems outsourcing projects as a double moral hazard problem," Omega, Elsevier, vol. 40(3), pages 379-389.

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