Knowledge based theory

Knowledge based theory

    Knowledge based theory in the organization illustrates knowledge plays vital role to design managerial decision making to explain relevant economic behavior (Grant, 1997). While transaction focuses on conducting the outsourcing at lower costs while this theory emphasizes the role of knowledge (Nonaka, 1994). As per this theory, firms can be perceived as storage of tactic and explicit knowledge in order to attained competitive advantage in the market niche (Grant, 1996; Nonaka, 1994).   In addition to this Knowledge based theory highlights the significance of knowledge resources to exploit within and outside the outside organization limits. In the context of inter-firm alliance, this theory recommends to use outsourcing arrangements which act as medium to use vendor skills (grant & Baden-Fuller, 2004). To expand IT project, managerial decision encourage by exploiting specific technical knowledge and necessity to the access which is not offered in client organization.  In the software development process, knowledge based theory highlights that the client unique knowledge is essential to mix with the retailer (Choudhury & Sabherwal, 2003). Specific external knowledge which successfully exploits in the market requires building common thought between the client and dealer organization. To have efficient software development, there should be combination of dealer technical knowledge and client domain knowledge in project level at the time of development process (Rus & Lindvall, 2002; Tiwana & McLean, 2005). It is not possible to achieve custom-software development process only with the common knowledge of client organization without mixing with vendor. The two additional project features successfully exploit the vendor technical knowledge during project level such as: a) the level at which knowledge about the client organization necessities on the particular project can be shared with the dealer and b) the level to which over the project life cycle, the knowledge has to stay constant.  Although most of the scholars viewed that all above theories are contradictory but in this research, we have considered all the theories which are more complementary theories to TCE.

“Leadership Styles and its Impact on Self-Efficacy: The mediating effect of Organisational Citizenship Behaviour in Higher Education Institutions.”