Integrated decision model for knowledge offshoring and outsourcing

Knowledge management (KM) has played a critical role in business management fields ever since the 1990s. In today's global marketplace, firms not only offshore and/or outsource tangible resources, but they also acquire tacit knowledge. The study herein attempts to construct a knowledge offshoring and outsourcing (KO&O) model from the basis of decision analysis and decision making to help organizations consider whether, what, and how to offshore and/or outsource knowledge. After reviewing KM‐related articles (in particular Arikan’s model, 2009) and conducting a case study of Yulon (Taiwan’s largest automobile manufacturer), this study presents a four‐mode KO&O model by considering four managerial questions and eight criteria. The model consists of four modes: knowledge allocation, development, deal, and growth. Accordingly, this study classifies KO&O as having 16 activities and details them. This study also forms an integrated KO&O framework and a checklist for practical decision analysis and managerial application. Finally, this study provides applications, suggestions, and directions toward KO&O practices and research for the future.