Offshore knowledge markets: A subject perspective

Offshoring of knowledge work such as software development raises questions among researchers about whether its subject association lies more with economics or sociology. This study investigates practitioner experiences by conducting interviews with senior management of an organization engaged in knowledge transfer across two economic markets, namely New Zealand (mature market) and Vietnam (emerging market). The study confirms that both perspectives co-exist, since social benefits are integral to economic transaction costs. Knowledge is intrinsically social which is built up from previously existing knowledge. Teams from emerging and mature markets are first brought together by managements for economic reasons, but to create new knowledge, they share information and generate social ties during the knowledge creation process.