Putting the Organizational Knowledge System Back Together Again: A Strategic Knowledge Management Typology for Outsourcing Firms

Abstract

This paper offers three strategic types that depict how outsourcing influences a firm's ability to create an effective knowledge management strategy. Outsourcing firms encounter unique problems when creating knowledge management programs. These firms may seek to leverage their "whole" knowledge base when they only retain some of the parts. We propose that a firm's strategic intent to management knowledge from internally and externally performed activities is contingent on the firm's motive for outsourcing. Using transaction cost economics, capability logic, and open innovation, this discussion presents three strategic types that illustrate how outsourcing firms resolve knowledge creation, transfer, and integration problems.