Skip to main content

Successful knowledge transfer within offshore supplier networks: a case study exploring social capital in strategic alliances

  • Chapter
Outsourcing Global Services

Part of the book series: Technology, Work and Globalization ((TWG))

Abstract

This chapter highlights the efforts of a Fortune 100 manufacturing firm’s five-year effort to achieve success with the offshore outsourcing of embedded software development. Despite stumbling initially, U.S. Manufacturing ultimately was able to engage a network of offshore suppliers to lower costs, reduce cycle time, increase quality, improve the work-life balance of developers, and meet stringent environmental requirements. For U.S. Manufacturing, a key to success offshore was a firm commitment to invest heavily in social capital and formalized knowledge transfer processes.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Adler, P.S., and Kwon, S-W. (2002) Social Capital: Prospects for a New Concept. Academy of Management Review, 27(1): 17–40.

    Google Scholar 

  • Anand, V., Click, W., and Manz, C. (2002) Thriving on the Knowledge of Outsiders: Tapping Organizational Social Capital. The Academy of Management Executive, 16(1), Feb.: 87.

    Google Scholar 

  • Argote, L. and Ingram, P. (2000) Knowledge Transfer: a Basis for Competitive Advantage in Firms. Organizational Behavior and Human Decision Processes, 82: 150–169.

    Article  Google Scholar 

  • Aron, R. and Singh, J. (2005) Getting Offshoring Right., Harvard Business Review, 8(12): 135–143.

    Google Scholar 

  • Becerra, M. and Gupta, A. (2003) Perceived Trustworthiness within the Organization: The Moderating Impact of Communication Frequency on Trustor and Trustee Effects. Organization Science, 14(1): 32–44.

    Article  Google Scholar 

  • Carter, T. (2006) Cheaper’s Not Always Better. Dr. Dobb’s Journal, available on http://www.ddj.com/184415486 (accessed on 7/18/06).

    Google Scholar 

  • Chowdhury, S. (2005) The Role of Affect- and Cognition-Based Trust in Complex Knowledge Sharing. Journal of Managerial Issues, 17(3): 310–326.

    Google Scholar 

  • Dess, G. and Shaw, J. (2001) Voluntary Turnover, Social Capital, and Organizational Performance. Academy of Management, The Academy of Management Review, 26(3): 446–457.

    Google Scholar 

  • Ferrin, D. and Dirks, K. (2003) The Use of Rewards to Increase and Decrease Trust: Mediating processes and differential effects. Organization Science, 14: 18–31.

    Article  Google Scholar 

  • Granovetter, M. (1973) The Strength of Weak Ties. American Journal of Sociology, 78: 1360–1380.

    Article  Google Scholar 

  • Hagedoorn, J., Cloodt, D., and Van Kranenburg, H.(2006) The Strength of R&D Network Ties in High-Tech Industries – A Multi-Dimensional Analysis of the Effects of Tie Strength on Technological Performance, Merit and Department of Organization and Strategy, DRUID Summer Conference 2006, Copenhagen, Denmark, June 18–20.

    Google Scholar 

  • Hansen, M. (1999) The Search-Transfer Problem: the Role of Weak Ties in Sharing Knowledge across Organization Subunits. Administrative Science Quarterly, 44(1): 82–111.

    Article  Google Scholar 

  • Hart, P. and Saunders, C. (1998) Emerging Electronic Partnerships: Antecedents and Dimensions of EDI Use from the Supplier’s Perspective. Journal of Management Information Systems, 14(4): 87–112.

    Google Scholar 

  • Hofstede, G. (2001) Culture’s Consequences, 2nd edition, Beverly Hills: Sage.

    Google Scholar 

  • Inkpen, A. and Tsang, E. (2005) Social Capital Networks and Knowledge Transfer. Academy of Management Review, 30(1): 146–165.

    Article  Google Scholar 

  • Jarvenpaa, S.L., Knoll, K., and Leidner, D.E. (1998). Is Anybody Out There? Antecedents of Trust in Global Virtual Teams. Journal of Management Information Systems, 14(4): 29–64.

    Google Scholar 

  • Jennex, M. and Adelakun, O. (2003) Success Factors for Offshore Information System Development. Journal of Information Technology Cases and Applications, 5(3): 12–36.

    Article  Google Scholar 

  • Koka, B. and Prescott, J. (2002) Strategic Alliances as Social Capital: a Multidimensional View. Strategic Management Journal, 23: 795–816.

    Article  Google Scholar 

  • Levin, D. and Cross, R. (2004) The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer, Management Science, 50(11): 1477–1490.

    Article  Google Scholar 

  • Levina, N. and Vaast, E. (2005) The Emergence of Boundary Spanning Competence in Practice: Implications for Implementation and Use of Information Systems. MIS Quarterly, 29(2): 235–363.

    Google Scholar 

  • Lin, C. (2007) To Share or Not to Share: Modeling Tacit Knowledge Sharing: Its Mediators and Antecedents. Journal of Business Ethics, 70: 411–428.

    Article  Google Scholar 

  • Luftman, J. (2005) Key Issues for IT Executives 2004. MIS Quarterly Executive, 4(2) 299–285.

    Google Scholar 

  • McFadyen, M. and Cannella, A. (2004) Social Capital and Knowledge Creation: Diminishing Returns of the Number and Strength of Exchange Relationships. Academy of Management Journal, 47(5): 735–746.

    Article  Google Scholar 

  • McFarlan, F. and Nolan, R. (1995) How to Manage an IT Outsourcing Alliance. Sloan Management Review, 36(2): 9–23.

    Google Scholar 

  • Nahapiet, J. and Ghoshal, S. (1998) Social Capital, Intellectual Capital and the Organizational Advantage. Academy of Management, 23(2): 242–266.

    Google Scholar 

  • Newell, S. and Swan, J. (2000) Trust and Inter-Organizational Networking. Human Relations, 53(10): 287–1328.

    Google Scholar 

  • Oh, H., Labianca, G., and Chung, M-H. (2006) A Multilevel Model of Group Social Capital. The Academy of Management Review, 31(3): 569.

    Google Scholar 

  • Oh, H., Chung, M-H., and Labianca G. (2004) Group Social Capital and Group Effectiveness: The Role of Informal Socializing Ties. Academy of Management Journal, 47(8): 860–875.

    Google Scholar 

  • Orr, J. (1996) Thinking about Machines, London: Cornell University Press.

    Google Scholar 

  • Politis, J.D. (2003) The Connection between Trust and Knowledge Management: What Are Its Implications for Team Performance. Journal of Knowledge Management, 7(5): 55–66.

    Article  Google Scholar 

  • Rogers, E.M. (2006) Diffusion of Innovations, 5th edition New York: Free Press.

    Google Scholar 

  • Rottman, J. (2006), Successfully Outsourcing Embedded Software Development. IEEE Computer, 39(1): 55–61.

    Article  Google Scholar 

  • Rottman, J. and Lacity, M. (2004) Twenty Practices for Offshore Sourcing. MIS Quarterly Executive, 3(3): 117–130.

    Google Scholar 

  • Rottman, J. and Lacity, M. (2006a) Knowledge Transfer is the Key to Successful Strategic Outsourcing. The Outsourcing Project, Vol. 4, Chapter 1, July, 2006. Available on http://www.cxoeurope.com/documents.asp?d_ID=87.

  • Rottman, J. and Lacity, M. (2006b) Proven Practices for Effectively Offshoring IT Work. Sloan Management Review, 47(3): 56–63.

    Google Scholar 

  • Shaw, J., Duffy, M., Johnson, J., and Lockhart, D. (2005) Turnover, Social Capital Losses, and Performance. Academy of Management Journal, 48(4): 594–625.

    Article  Google Scholar 

  • Tiwana, A. and Keil, M. (2007) Does Peripheral Knowledge Complement Control? An Empirical Test in Technology Outsourcing Alliances. Strategic Management Journal, 28: 623–624.

    Article  Google Scholar 

  • Trompenaars, F. and Hampden-Turner, C. (1998) Riding the Waves of Culture, London: Nicholas Brearley.

    Google Scholar 

  • Tsai, W. (2001) Knowledge Transfer in Intraorganizational Networks: Effects of Network Position and Absorptive Capacity on Business Unit Innovation and Performance. Academy of Management Journal, 44(5): 996–1005.

    Article  Google Scholar 

  • Tsoukas, H. (1996) The Firm as a Distributed Knowledge System: A Constructionist Approach. Strategic Management Journal, 17 Special Issue: 11–25.

    Google Scholar 

  • Zaheer A., McEvily, B., and Perrone, V. (1998) Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance. Organization Science, 9(2): 141–159.

    Article  Google Scholar 

Download references

Authors

Copyright information

© 2008 Joseph W. Rottman

About this chapter

Cite this chapter

Rottman, J.W. (2008). Successful knowledge transfer within offshore supplier networks: a case study exploring social capital in strategic alliances. In: Outsourcing Global Services. Technology, Work and Globalization. Palgrave Macmillan, London. https://doi.org/10.1057/9780230227415_7

Download citation

Publish with us

Policies and ethics