Knowledge sharing and service innovativeness in offshore outsourced software development firms

The purpose of this study is to investigate the effects of knowledge sharing on innovativeness in offshore outsourced software development firms.

For the study, a survey methodology was used, and 408 respondents attached to offshore outsourced software development firms in Sri Lanka responded. The hypothesized relationships were examined by structural equation modelling.

The analysis yielded a two-component factor structure for knowledge sharing, which were termed as knowledge sharing practices and knowledge availability. It was found that both knowledge sharing practices and knowledge availability significantly positively predict innovativeness. The study provided empirical data to support the contention that organizations should be able to timely deliver knowledge to the right user to enhance innovativeness.

The findings suggest the importance of creating an environment conducive for software developers to share information, insight, lessons learned and effective practices. Further, organizations have to establish a mechanisms to capture and capitalise knowledge residing in employees.

In the knowledge-intensive offshore business sectors such as software development, economic value is found more in intangibles and less in tangibles. The sharing of knowledge leads to the dissemination of innovative ideas, which could improve work processes and develop new business opportunities. Therefore, it is important to conduct research that would lead to better understand drivers that enhance the innovativeness of service offerings of firms located in developing countries when competing internationally in offshore outsourced software development.