The role of Lean principles in supporting knowledge management in IT outsourcing relationships

Abstract

Knowledge management (KM) in information technology outsourcing (ITO) is important to the organizations which pursue long-term strategic benefits and innovation. Effective KM mechanism in outsourcing enables both parties to continuously exchange knowledge and promotes collective learning. This paper investigates the role of Lean principles in supporting KM in ITO relationships. Drawn from the knowledge-based view of the firm, knowledge accessing and knowledge integration and utilization are identified as two key KM processes in outsourcing. Three case studies conducted in different service industries with 18 interviews indicate that the two KM processes were supported by four Lean principles: respect for people, continuous improvement, systems thinking, and proactive behavior. Those principles can be implemented with different tools at different organizational levels. This study reveals the relevance between Lean and KM in ITO relationships, which has not been reported by the KM literature. It also provides implications to ITO practitioners for the implementation of Lean principles.