DISPATCHING CAPACITY IN MANUFACTURING FACILITY OFFSHORING: AN UNNOTICED ASPECT OF KNOWLEDGE TRANSFER

Purpose of this paper: This paper analyses the challenges in dispatching knowledge from a sending unit to a receiving unit in offshoring manufacturing facilities. The paper identifies motivation of the unit, relational dynamics and structures as important factors that influence the entire knowledge transfer process, and which should accordingly be monitored and managed.

This paper analyses the challenges in dispatching knowledge from a sending unit to a receiving unit in offshoring manufacturing facilities. The paper identifies motivation of the unit, relational dynamics and structures as important factors that influence the entire knowledge transfer process, and which should accordingly be monitored and managed.

Design/methodology/approach:The paper develops a theoretical model of knowledge transfer using existing literature. In a separate line of research, we study four cases each representing a manufacturing facility offshoring process. Using the cases, the paper uses an inductive approach to identify five main themes from the empirical cases. In the discussion, these themes are linked with the theoretical model leading to the identification of six testable propositions for future research.Findings: Key elements of the knowledge transfer model is the extra tasks laid on the organization before the transfer influencing the motivation to teach the recipient unit, requesting managerial mechanisms and targeted communication from the managerial level. Furthermore, social ties and trust appear to be a key issue for ensuring the successful transfer by avoiding the sense of competition between the dispatching and receiving units, but social ties are also needed when knowledge is highly tacit. Finally, when knowledge is tacit, a need for developing teaching skills and teaching programs are highly requested but rarely implemented. The paper therefore concludes by stating that much can be achieved if managers are actively involved early on in the process by preparing teaching programs, carefully planning the process and by ensuring targeted communication about the manufacturing offshoring process. The added value of the paper lies exactly in the two-stage approach and the associated propositions thereby making a strong contribution to the current understanding of manufacturing facility offshoring.

Key elements of the knowledge transfer model is the extra tasks laid on the organization before the transfer influencing the motivation to teach the recipient unit, requesting managerial mechanisms and targeted communication from the managerial level. Furthermore, social ties and trust appear to be a key issue for ensuring the successful transfer by avoiding the sense of competition between the dispatching and receiving units, but social ties are also needed when knowledge is highly tacit. Finally, when knowledge is tacit, a need for developing teaching skills and teaching programs are highly requested but rarely implemented. The paper therefore concludes by stating that much can be achieved if managers are actively involved early on in the process by preparing teaching programs, carefully planning the process and by ensuring targeted communication about the manufacturing offshoring process. The added value of the paper lies exactly in the two-stage approach and the associated propositions thereby making a strong contribution to the current understanding of manufacturing facility offshoring.

Research limitations/implications: The paper follows four case companies in their actual processes of facility offshoring and findings are linked with the theoretical model and leads to the six propositions. However, the actual verification of the findings can only take place once the propositions have been tested on a large scale survey. The paper therefore concludes by suggesting how to test the six propositions in future research.