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The small and medium-sized enterprise information technology outsourcing knowledge sharing strategy game and risk control

Author: LiPing
Tutor: ZhaoKun
School: Yunnan University of Finance
Course: Management Science and Engineering
Keywords: IT outsourcing Knowledge sharing Prison dilemma Repeated game Risk control
CLC: F276.3
Type: Master's thesis
Year: 2013
Downloads: 11
Quote: 0
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Abstract


Under the economic globalization, the competitive environment around smalland medium-sized enterprises is becoming more and more complex. Many factorscoming from environment, technology, industry competition and so on bring severalchallengesforsurvival and development of small and medium-sized enterprises.Inorder to meet the needs, small and medium-sized enterprises should accelerate theapplication ofinformation technology.But for mostenterprises, it is difficult to just relyon existing resources for technical innovation. IT outsourcing is the main way to theapplication and development of information technology. Throughoutsourcing,enterprises can response to the rapidly changing global economy flexiblyand realize the complementation ofresources and knowledge.And above all, IToutsourcing can provide conditions for enterprises to concentrate on the core businessin the fierce competition.For enterprises, knowledge is the key to stay ahead of thecompetitionas the strategic resources. It is important for enterprises to improve theircompetitiveness and achieve sustainable development.Knowledge sharing is not onlycan improve the technical ability and competitiveness for enterprises, but it alsoenhance the success rate of enterprise outsourcing by strengthening mutualunderstanding, strengthening technical communication, consolidating the strategicdecision and partnership, and so on. In the outsourcing, there are the specialrelationship of enterprises and the particularity and importance of knowledge, as wellas the contractual relationships. So there will appear some risk problems, such asinformation leakage, environmental uncertainty, etc. The study of this problem hasbecome the focus of related fields.In this paper, several moderneconomic theories will be adopted, mainlyincluding literature analysis, game analysis, and specification analysis, and so on.IToutsourcing will be divided into three types, including short-term, medium-term andlong-term. And the risk problems in three kinds of outsourcing will be analyzed through the static game, limited times and infinite timesrepeat games of prisoner’sdilemma.In static game, due to short-termbenefits, outsourcing service providers maychoose cheat or default to get short-term profits. But in the long run, outsourcingservice providers have to consider the long-term profits and guide customers toachieve reasonable and honesty expectations. One of the main factors influencing thesatisfaction of enterprises is the honest of outsourcing service providers. Once theexpectations can’t be met, the customers will do some to influence the outsourcingservice providers. So in the process of knowledge sharing game, only when one partymakes a cooperative attitude, the other party can take the attitude of cooperation in thenext stage. Then the common interests for the long term will be realized. Finallyaccording to the analysis, excepted return will be used to solve the problem thatwhether to share knowledge. We can see that knowledge sharing is very important inthe process of IT outsourcing by analyzing the game matrix and decision tree. Thentotal profit formula and average profit formula are used to analyze the major risks. Atthe same time, the strategies to control the corresponding risks will be put forward.

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CLC: > Economic > Economic planning and management > Enterprise economy > A variety of enterprise and economic > Small and medium-sized enterprises, township enterprises
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