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Global StrategyCreating and Sustaining Advantage across Borders$
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Andrew Inkpen and Kannan Ramaswamy

Print publication date: 2005

Print ISBN-13: 9780195167207

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780195167207.001.0001

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Leveraging Knowledge Resources Globally

Leveraging Knowledge Resources Globally

Chapter:
(p.130) 6 Leveraging Knowledge Resources Globally
Source:
Global Strategy
Author(s):

Andrew Inkpen (Contributor Webpage)

Kannan Ramaswamy (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195167207.003.0007

This chapter continues the discussion of knowledge, shifting the focus to the global allocation of knowledge-based resources. It argues that the current wave of globalization promises to change the way MNEs decide on the preferred location for their value added functions and activities. Recent trends in the management of knowledge resources have important implications for the formulation and execution of global strategy. In particular, the controversial topic of offshoring gives rise to a new set of strategic issues. The chapter proposes that the decision to use offshoring for functions with a large knowledge component should be a function of country-specific considerations. The considerations should center on the ability to leverage the unique location specific characteristics to add superior value to the function and to the firm. The chapter also examines the type of knowledge functions that can be outsourced and the major decisions necessary to execute an outsourcing entry strategy.

Keywords:   offshoring, outsourcing, knowledge, strategy, location, value chain

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