This article proposes an analytical framework to explain value creation through offshore outsourcing by addressing a key question: How do firms create value by outsourcing their business functions to foreign external providers? The growing prevalence of offshore outsourcing as a dominant...

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...