Outsourcing as seen from the perspective of knowledge management

Abstract

This article analyzes outsourcing from a knowledge-based perspective. We investigate how knowledge as an organizational resource and the capabilities to manage this knowledge affect the benefits of outsourcing. Our results indicate that the nature of the knowledge of the outsourced activity affects the success of outsourcing. We also analyze the way in which collaborative know-how (as a knowledge resource) and learning capability (as an organizational capability) affect outsourcing benefits. We then test the validity of this hypothesis by surveying organizations from the service sector. The results of the empirical study provide strong support for our assertion that knowledge management affects the results of outsourcing decisions. © 2010 Institute for Supply Management, Inc.™.