The impact of outsourcing strategies on companies’ intellectual capital

Abstract

The aim of the paper is to analyse the effect of outsourcing on the intellectual capital of firms in the current turbulent environment. In particular, the paper will analyse the difference between cost-driven and strategic-driven outsourcing and their impact on human and organisational/relational capital. In addition, the paper will stress the differences in outsourcing of manufacturing and service firms. We propose an approach of literature review in order to develop a model of outsourcing for enhanced intellectual capital utilisation and competitiveness. This methodology puts in evidence that there are very few studies/analysis that stress the link between strategic outsourcing and its potential to increase in particular relational capital due to cooperation of two or more firms. The outcomes of the application will result in a theoretical model that can assist researchers, managers and consultants to better understand the link between outsourcing and intellectual capital and competitive advantage.

Keywords:

• outsourcing
• IC
• human capital
• literature review

Additional information

Notes on contributors

Ingi Runar Edvardsson

About the author

Ingi Runar Edvardsson is a Professor at the School of Business, University of Iceland in Reykjavik. His research interests focus on the interplay between knowledge management and human resource management, intellectual capital, and outsourcing, as well as on regional innovation and learning strategies.