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Knowledge transfer and organizational learning in IS offshore sourcing

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  • Chua, Ai Ling
  • Pan, Shan L.

Abstract

Offshore sourcing is the trend where companies look for cheaper offshore resource options to reduce their baseline costs. This involves the retrenchment of more expensive onshore resources to be replaced with cheaper offshore resources. A key activity is the transfer of knowledge from the onshore resources to the offshore resources. This paper is written from an organizational learning perspective, looking at how a global IS department in a multinational bank went about transferring its business application support and development experiences to another insourced location. Specifically, we examine how knowledge is transferred for the five IS body of knowledge (BOK) areas, namely, technology, application domain, IS application, organizational and IS development process knowledge. We find that whilst some areas of the IS BOK are easily grafted, some require intense vicarious and experiential learning using rich media, whilst others are more difficult to transfer. The findings extend the literature on knowledge transfer and organizational learning in the context of the IS BOK.

Suggested Citation

  • Chua, Ai Ling & Pan, Shan L., 2008. "Knowledge transfer and organizational learning in IS offshore sourcing," Omega, Elsevier, vol. 36(2), pages 267-281, April.
    • Handle: RePEc:eee:jomega:v:36:y:2008:i:2:p:267-281
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    Cited by:

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    2. Anirban Ganguly & Debdeep Chatterjee & John Vail Farr, 2018. "Evaluating Barriers To Knowledge Sharing Affecting New Product Development Team Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(06), pages 1-26, August.
    3. Shu-Hsien Liao & Chih-Chiang Chen & Da-Chian Hu & Yu-chun Chung & Min-Ju Yang, 2017. "Developing a sustainable competitive advantage: absorptive capacity, knowledge transfer and organizational learning," The Journal of Technology Transfer, Springer, vol. 42(6), pages 1431-1450, December.
    4. Williams, Christopher & Durst, Susanne, 2019. "Exploring the transition phase in offshore outsourcing: Decision making amidst knowledge at risk," Journal of Business Research, Elsevier, vol. 103(C), pages 460-471.
    5. Nidhra, Srinivas & Yanamadala, Muralidhar & Afzal, Wasif & Torkar, Richard, 2013. "Knowledge transfer challenges and mitigation strategies in global software development—A systematic literature review and industrial validation," International Journal of Information Management, Elsevier, vol. 33(2), pages 333-355.
    6. Mazzola, Erica & Bruccoleri, Manfredi & Perrone, Giovanni, 2019. "The curvilinear effect of manufacturing outsourcing and captive-offshoring on firms' innovation: The role of temporal endurance," International Journal of Production Economics, Elsevier, vol. 211(C), pages 197-210.
    7. Yuan Li & Zelong Wei & Yi Liu, 2010. "Strategic Orientations, Knowledge Acquisition, and Firm Performance: The Perspective of the Vendor in Cross-Border Outsourcing," Journal of Management Studies, Wiley Blackwell, vol. 47(s2), pages 1457-1482, December.
    8. Deng, Chun-Ping & Mao, Ji-Ye & Wang, Guo-Shun, 2013. "An empirical study on the source of vendors’ relational performance in offshore information systems outsourcing," International Journal of Information Management, Elsevier, vol. 33(1), pages 10-19.
    9. Janiak, Adam & Rudek, RadosLaw, 2010. "A note on a makespan minimization problem with a multi-ability learning effect," Omega, Elsevier, vol. 38(3-4), pages 213-217, June.
    10. Sáenz-Royo, Carlos & Salas-Fumás, Vicente, 2013. "Learning to learn and productivity growth: Evidence from a new car-assembly plant," Omega, Elsevier, vol. 41(2), pages 336-344.
    11. Philip Müller & Martin Franz, 2019. "Transnational labour migration and the offshoring of knowledge-intensive business services within global production networks: The case of a German automotive company in Turkey," Environment and Planning A, , vol. 51(6), pages 1350-1369, September.
    12. Abd Hair Awang & Mohd Yusof Hussain & Jalaluddin Abdul Malek, 2009. "Promoting Knowledge Transfer in Science and Technology: A Case Study of Technology Park Malaysia (TPM)," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 11(1), pages 95-113, April.
    13. Stanko, Michael A. & Olleros, Xavier, 2013. "Industry growth and the knowledge spillover regime: Does outsourcing harm innovativeness but help profit?," Journal of Business Research, Elsevier, vol. 66(10), pages 2007-2016.

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