Optimal knowledge outsourcing model

Research output: Contribution to journalArticlepeer-review

21 Scopus citations


Every organization controls its investments in the development and maintenance of internal knowledge (IK) as opposed to outsourcing this effort, namely, consuming external knowledge (EK). A number of factors involved in this decision, such as the IK learning curve, its associated holding cost, value deterioration rate, value of future IK or cost of purchasing EK. This study proposes a dynamic optimal control model for examining the properties of this problem. Optimal control strategies and steady-state conditions are identified for a number of special cases. Some insightful observations are obtained by studying the solution sensitivity to the underlying assumptions.

Original languageEnglish
Pages (from-to)451-457
Number of pages7
Issue number6
StatePublished - 1 Dec 2003


  • Knowledge management
  • Maintenance management
  • Optimal control

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Information Systems and Management


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