Innovation offshoring: a tri-method review of emerging trends and knowledge management strategies

Purpose The purpose of this study is to advance the understanding of innovation offshoring by integrating knowledge management (KM) practices. It aims to identify how KM contributes to strategic offshoring, sourcing decisions for innovation and the utilization of knowledge-intensive business services. By doing so, it seeks to provide a framework that enhances both theoretical insights and practical applications in the field of innovation offshoring. Design/methodology/approach This study uses a tri-method approach – bibliometric analysis, co-citation analysis and text mining – to examine the intersection of innovation offshoring and KM. Data from Web of Science (WoS), analyzed using Leximancer and Bibexcel, reveal key KM practices, such as absorptive capacity and knowledge-sharing, that enhance offshoring-driven innovation. Integrating KM with global sourcing strategies is shown to manage complexities, lower transaction costs and boost innovation performance. Addressing the limitations of prior single-method studies, this research presents a structured KM-offshoring integration framework, mapping the thematic interconnections between KM practices and global sourcing strategies to enhance innovation performance and cross-border knowledge transfer. Findings This study finds that effective KM practices are crucial for optimizing innovation offshoring strategies. Key KM elements such as internal knowledge creation, absorptive capacity and knowledge-sharing routines significantly enhance innovation outcomes. The integration of KM practices with global sourcing strategies helps firms manage complexities, reduce transaction costs and improve innovation performance by leveraging global talent and resources. Research limitations/implications The study’s reliance on data from the WoS and the Association of Business Schools journal ranking may introduce selection bias, limiting the generalizability of findings. Future research should incorporate additional databases such as Scopus to validate the results. Moreover, the study predominantly uses bibliometric methods, which could benefit from being complemented by qualitative analyses to provide deeper insights into KM practices in innovation offshoring. Practical implications For practitioners, this study underscores the critical role of KM in optimizing innovation offshoring strategies. Effective KM practices enable firms to capture, share and use knowledge efficiently across global operations, mitigating the risks associated with geographical and cognitive distances in offshoring arrangements. Social implications The integration of KM in innovation offshoring has significant social implications. By effectively managing knowledge, firms can contribute to the development of global knowledge economies, promote cross-border collaborations and support the growth of local talent pools. This can lead to increased innovation, economic development and the creation of high-value jobs in emerging markets. Originality/value This study is original in its comprehensive approach to examining the intersection of innovation offshoring and KM. It provides valuable insights into how KM practices can enhance innovation performance in global sourcing contexts. The findings contribute to both academic literature and practical applications, offering a nuanced understanding of the strategic role of KM in innovation offshoring.