The Need for Knowledge Management When Backsourcing is Embraced

Abstract

This paper focuses on a relatively new sourcing strategy referred to as backsourcing, where we emphasize the importance of knowledge reintegration and how it can be managed. Our reference for this approach is built upon Knowledge Management theory and contribution from different academics that have discussed and highlighted the reversal of global manufacturing strategies. This is illustrated through an interview study with three members within the maritime industry at a high-cost location, which have already embraced a backsourcing strategy, or are preparing to embark on one. Findings in this paper contribute toward providing strategic choices that should be considered when reintegrating globally fragmented knowledge.

Manufacturing backsourcing: a case study of a company's process framework

“…Solli-Saether and Gottschalk (2015) argue that better understanding of the processes and internal challenges involved has a significant influence on the success of backsourcing. A few studies have described the process of backsourcing, such as Kotlarsky and Bognar (2012), while others have focused on the challenge of knowledge re-integration (Bhagwatwar et al, 2011, Nujen andDamm, 2016). However, there is a clear absence of theoretical models or recommendations for how companies can conduct the backsourcing process.…”