Search Motives, Local Embeddedness, and Knowledge Outcomes in Offshoring

In this paper we explicate the role of external knowledge search motives and host country context (local embeddedness) in driving different knowledge outcomes in offshoring. Drawing on the offshoring/offshore outsourcing literature, we develop a classification scheme based on different knowledge search motives (exploitation vs. exploration) and local embeddedness (low vs. deep). Utilizing this classification scheme, we discuss four important knowledge outcomes in offshoring: knowledge replication, refinement, renewal and recombination. Additionally, we highlight how client-supplier relational governance, and offshoring knowledge, skills and abilities (KSAs) may accentuate the effectiveness of various knowledge outcomes and value creation potential