Collaborative Research: Change Management and Organizational Innovation Perspectives on Business Process Outsourcing

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This study examines "How can organizations engaged in offshoring business processes best manage changes in their firm's knowledge environment to enhance both innovation and performance?" More specifically, the authors will examine how the outsourcing of different types of business processes impacts a firm's ability to manage changes in its associated knowledge structures. They also examine consequent long-term impacts on market performance. The study builds on theory about dynamic capabilities and knowledge management by highlighting the value of different types of knowledge-based activities and how a firm's dynamic capabilities evolve consequent to changes in its knowledge structures in conjunction with its strategic capabilities. In terms of practical implications, the work will go beyond prior work examining whether and when to outsource; it should yield insights into the types of internal firm capabilities that can be used to best leverage the benefits offered by offshoring. Employing a multimethod approach, the study begins with in-depth interviews of managers in charge of offshoring to refine the hypothesized theoretical relationships. Next, longitudinal data will be collected via two waves of cross-sectional surveys of firms engaged in offshoring. In addition, the authors will rely upon longitudinal secondary data from a sample of publicly listed firms engaged in the outsourcing of different business processes.