Relational capital and tacit knowledge acquisition in international outsourcing relationships

• Main Authors: Md Saad, Norsafinas, Jedin, Mohd. Haniff
• Format: Article
• Language: English
• Published: AENSI Publisher 2014
• Subjects: HF Commerce; JZ International relations
• Online Access: http://repo.uum.edu.my/22173/1/AEB%20%208%2011%20S%202014%201087-1097.pdf; http://repo.uum.edu.my/22173/; http://www.aensiweb.com/old/aeb_Special5_2014.html

The acquisition of tacit knowledge through business relationships with foreign buyers is deemed important in helping local supplier firms improve their competitiveness.As the suppliers engage in international outsourcing, they can use the opportunity of collaborating with their foreign buyers to develop relational capital and exploit this advantage to obtain tacit knowledge that is new and valuable to them.This allows the suppliers to access not only tacit knowledge but other idiosyncratic resources belonging to their foreign buyers.Employing a sample of 122 Malaysian manufacturing suppliers involved in international outsourcing, this study empirically investigates the implications of relational capital on the acquisition of tacit knowledge in international outsourcing relationships.The results provide evidence that partner interaction and cultural sensitivity dimensions of relational capital are indeed facilitated the acquisition of tacit knowledge, but that no support is found for trust dimension of relational capital.Further, the results also indicate that the tacit knowledge acquired from foreign buyers associates with Malaysian suppliers’ capability enhancement.