How knowledge and technology relate in creating value: An Italian case of technology outsourcing

The aim of this paper is to investigate the importance of managing outsourcing without allowing learning skills to become atrophied, but instead ensuring that the transfer of functions to external agents (by outsourcing) can actually be a source of new learning. From an organizational learning perspective, the issues addressed fall within the sphere of corporate strategy and play a critical role in value creation. Hypotheses are presented concerning the role of management, its leadership styles and its ability to trigger mechanisms of new knowledge creation with a consequent impact on value creation, even when production processes are performed by third parties. The paper's investigation is based on a positivist philosophy, and follows a socio-economic and knowledge-based approach. The method used to verify the hypotheses involved a process of hands-on research, with bank executives being asked to complete a structured questionnaire. From the survey it emerged that in order to create value and allow the outsourcing output to be incorporated in a process of continual improvement of resources, a correct management of the relationship with the outsourcing service provider is most efficacious if the output is treated as shared, disseminated and incorporated knowledge. It was found that, in the presence of democratic styles, knowledge becomes learning and generates the maximum benefit in terms of distinctive resources. This paper argues that it is possible to outline a procedure in which particular importance is given to control and leadership, which are the basis for dissemination and learning outcome.