Interoperability of Knowledge Accumulation and Engineering Manpower Outsourcing in Enterprises

In recent years, the global economy has moved away from considering capital as the main axis of the economic system and has gradually come to consider knowledge accumulation (KA) and innovation as the main driving forces of economic growth and increased productivity. Because at the same time companies chose to embrace skilled engineering manpower outsourcing (EMO), the global economy now confronts the issues of how to maintain an accumulation of knowledge within the organisation and how to manage outsourcing and external knowledge to achieve balance and maximise values. This paper reports on a research and analysis study of Taiwan's optical industry using a mathematical model of translog cost function that accomplishes EMO and KA and applying this mathematical model to the optical companies in Taiwan. This paper finds that KA and EMO influence each other; when EMO increases, the KA in the company decreases in response, and vice versa.