Leveraging Knowledge Resources Globally

Andrew Inkpen and Kannan Ramaswamy

in Global Strategy

Published in print December 2005 | ISBN: 9780195167207
Published online September 2007 | e-ISBN: 9780199789825 | DOI:

Series: Strategic Management Series

Leveraging Knowledge Resources Globally

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This chapter continues the discussion of knowledge, shifting the focus to the global allocation of knowledge-based resources. It argues that the current wave of globalization promises to change the way MNEs decide on the preferred location for their value added functions and activities. Recent trends in the management of knowledge resources have important implications for the formulation and execution of global strategy. In particular, the controversial topic of offshoring gives rise to a new set of strategic issues. The chapter proposes that the decision to use offshoring for functions with a large knowledge component should be a function of country-specific considerations. The considerations should center on the ability to leverage the unique location specific characteristics to add superior value to the function and to the firm. The chapter also examines the type of knowledge functions that can be outsourced and the major decisions necessary to execute an outsourcing entry strategy.

Keywords: offshoring; outsourcing; knowledge; strategy; location; value chain

Chapter.  8262 words.  Illustrated.

Subjects: Business Strategy

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