Knowledge transfer in IT offshoring relationships: the roles of social capital,efficacy and outcome expectations

Information technology (IT) development in global organisations relies heavily on the transfer of tacit and complex knowledge from onshore units to offshore subsidiaries. A central concern of such organisations is the development of social capital, which is known to facilitate the smooth transfer of knowledge. However, only a few studies in IS research have explicitly examined the role of social capital for knowledge transfer in an IT offshoring context. In this paper, we argue that such knowledge transfer mechanisms can be understood better by considering social capital in concert with knowledge senders' efficacy and outcome expectations, two of the potentially key motivational drivers of knowledge transfer. We develop our arguments through a qualitative case study of a large German multinational company. German IT developers in this firm provided in‐depth accounts of their experience with offshore colleagues in an Indian captive subsidiary unit. Drawing on our analysis, we develop a model that depicts the influence of social capital, efficacy and outcome expectations on onshore IT developers' ability and willingness to transfer knowledge to offshore colleagues. Through the model, we also explain how social capital, efficacy and outcome expectations are interrelated and generate three interlocked, self‐reinforcing circles of knowledge transfer success in IT offshoring relationships.