What do we know about manufacturing reshoring

Published on Oct 26, 2017
· DOI :10.1108/JGOSS-02-2017-0004
Paolo Barbieri13
Estimated H-index: 13
(UNIBO: University of Bologna),
Francesco Ciabuschi16
Estimated H-index: 16
(Uppsala University)
+ 1 AuthorsMatteo Vignoli6
Estimated H-index: 6
(University of Modena and Reggio Emilia)
Purpose The aim of this paper is to analyze and classify research that has been conducted on manufacturing reshoring, i.e. the decision to bring back to the home country production activities earlier offshored, independently of the governance mode (insourcing vs outsourcing). Consequently, the paper also aims at providing avenues for future research and to highlight the distinct value of studying manufacturing reshoring either per se or in combination with other constructs of the international business tradition. Design/methodology/approach A set of 57 carefully selected articles on manufacturing reshoring published in international journals or books indexed on Scopus in the past 10 years was systematically analyzed based on the “5Ws and 1H” (who-what-where-when-why and how) set of questions. Findings The authors’ work shows a certain convergence among authors regarding what reshoring is and what its key features and motivations are. In contrast, other related aspects, such as the decision-making and implementation processes, are comparatively less understood. Research limitations/implications As manufacturing reshoring is a “recent” topic, for some of its aspects, only exploratory research is available to date, limiting the authors’ possibility to either characterize it in a more exhaustive way or highlight well-established patterns. Practical implications The paper demonstrates that studying reshoring will indeed contribute to expanding our understanding of internationalization processes and strategies in general and of production internationalization specifically. While past studies have argued that the learning derived from international experience would permit firms to overcome their unfamiliarity with new business environments, reshoring might show that this outcome is not necessarily certain. Rather, firms might not be able to overcome obstacles because of internationalization or they might realize that attempting to do so is not desirable, e.g. because of excessive risk or changes in the firm’s strategic priorities. Social implications From a societal point of view, the present research underlines that reshoring can be part of that re-industrialization policy that many Western countries include in their economic agenda – yet, its impact on employment should not be overestimated, as often relocation is only in regard to some product lines. At the same time, there might be an intimate relationship between reshoring and the various forms of technological innovations applied to manufacturing – which has become popularly labeled as “Industry 4.0”. Originality/value Literature reviews proposed until now usually paid almost exclusive attention to motivations driving this phenomenon. This paper offers a broader and more comprehensive examination of the extant knowledge of manufacturing reshoring and identifies the main unresolved issues and knowledge gaps, which future research should investigate.
📖 Papers frequently viewed together
105 Citations
99 Citations
182 Citations
#1Paul L. Hartman (College of Business Administration)H-Index: 3
#2Jeffrey A. Ogden (AFIT: Air Force Institute of Technology)H-Index: 16
Last. Benjamin T. Hazen (UT: University of Tennessee)H-Index: 38
view all 4 authors...
As firms from across all manufacturing sectors are rethinking their outsourcing and offshoring strategies, there is the potential for a manufacturing renaissance in the U.S. The findings from this case study suggest that the current manufacturing relocation shift is not perceived by manufacturers as a long-term business strategy (as outsourcing has been). As such, the results suggest that manufacturing relocation decisions based exclusively on models such as total cost of ownership (TCO) will no...
28 CitationsSource
#1Filippo Albertoni (Polytechnic University of Milan)H-Index: 4
#2Stefano Elia (Polytechnic University of Milan)H-Index: 20
Last. Lucia Piscitello (Polytechnic University of Milan)H-Index: 29
view all 4 authors...
This paper investigates whether reshoring of business services is the result of company response to performance shortcomings of the initiative offshored or instead is motivated by persisting with original offshoring strategy (disintegration advantages, accessing new markets and cost-saving), regardless of offshoring performance. Our empirical analysis, based on data from the Offshoring Research Network, shows that both arguments hold. Moreover, when offshoring had been motivated by accessing to ...
28 CitationsSource
Purpose Due to today’s volatile business environment companies have started to establish a better understanding of the total risk/benefit-balance concerning manufacturing location decisions of their component supply. The focus is now much more on comprehensive and strategic supply chain issues rather than simply relying on piece-part cost analysis. This has led to an emerging trend called re-shoring. The purpose of this paper is to understand the primary motivation behind the re-shoring strategy...
29 CitationsSource
#1Emma Brandon-Jones (University of Bath)H-Index: 5
#2Marie Dutordoir (University of Manchester)H-Index: 15
Last. Brian Squire (University of Bath)H-Index: 17
view all 4 authors...
Interest in reshoring, defined as the return of manufacturing and service operations from previously offshored locations to the U.S., has gained momentum recently. Yet, there is no academic evidence on the shareholder value implications of reshoring decisions. This paper analyzes the shareholder wealth effects of 37 reshoring decisions announced by U.S. firms during 2006–2015. Our results indicate that reshoring announcements result in positive abnormal stock returns. Mean (median) abnormal stoc...
28 CitationsSource
#1John V. Gray (Max M. Fisher College of Business)H-Index: 15
#2Gökçe Esenduran (Max M. Fisher College of Business)H-Index: 9
Last. Keith Skowronski (USC: University of South Carolina)H-Index: 4
view all 4 authors...
Abstract Small to medium-sized enterprises (SMEs) are moving their manufacturing operations from low-cost countries back to high-cost countries, reversing earlier offshoring decisions. These reshoring decisions cannot be completely explained by changing location-related costs. To better understand why SMEs are reshoring, we evaluate nine product-line decisions – six to reshore and three to remain offshore – and codify four empirical observations. We then integrate these observations with relevan...
66 CitationsSource
Purpose Reshoring, whether concerning back-reshoring or near-reshoring, is a quite recent phenomenon. Despite the economic and political interest of this topic, research questioning determinants and results of reshoring remain rare. The purpose of this paper is to help people to better understand reasons for reshoring. Design/methodology/approach To better understand reasons for near-reshoring, the authors conducted a study among 215 French firms in spring 2016, including 197 of them sourcing ma...
14 CitationsSource
Purpose The last decades have seen manufacturing and services offshoring on the rise, often motivated by low prices and without consideration of other important criteria such as additional cost measures and risk. With wages in former low-cost countries and automation/robotization increasing, these decisions are increasingly contested. Re-evaluations of “shoring” decisions inherently create a need to re-examine theoretical and academic contributions to this rapidly changing phenomenon. Therefore,...
41 CitationsSource
#1Benedikt WiesmannH-Index: 1
Last. David ErikssonH-Index: 12
view all 4 authors...
PurposeThe purpose of this paper is to clarify the rather blurry concept of reshoring and its main drivers and barriers. At the same time, the paper seeks to provide a much-needed overview of the s ...
87 CitationsSource
This paper examines the U.S. manufacturing re-shoring trend, argues its inherent limitations and discusses that there is no evidence implying significant impacts of such renaissance on domestic employment since the organizational structure of manufacturing production has changed over the past years. This research proposes a different definition of disruptive innovation and introduces examples of disruptive innovation in textile and apparel manufacturing industry, based on mega trends by 2025. Fi...
8 Citations
Purpose: To demonstrate the demand of knit apparel products, and make a case for implementation of new knitting technologies to further bolster the U.S. reshoring movement. Design/methodology/approach: time-series analysis with ARIMA forecasting model Findings: A positive relationship of several knit apparel imports, explaining the consumer demand for these product categories and the need for investment in these areas. Originality/Value: Knit apparel imports have not been studied in the past, as...
7 Citations
Cited By63
#1Rebecca Castagnoli (UNITO: University of Turin)H-Index: 3
#2Giacomo Buchi (UNITO: University of Turin)H-Index: 4
Last. Monica Cugno (UNITO: University of Turin)H-Index: 3
view all 4 authors...
Abstract null null Industry 4.0 has attracted significant attention from researchers in the international business field for a decade. This paper critically analyzes the literature on the relationships between Industry 4.0 and international business. A systematic literature review of 59 studies published between 2011 and December 2020 is conducted. Using the Theory, Context, Characteristics, and Method (TCCM) framework, the review identifies various gaps in research and proposes future research ...
This paper aims to offer a long-term systematic picture of the evolution of manufacturing offshoring (in terms of intensity, geography and drivers) highlighting the changes in the surrounding context and the resulting transitions points (“points in time”) that have shaped its development path.,Three statistical tools were adopted on a dataset of 644 cases. First, the authors resorted to multiple structural change tests to identify the transition points. Second, the authors explored offshoring ge...
#1Bart Kamp (University of Deusto)H-Index: 7
#2Juan José Gibaja (University of Deusto)H-Index: 5
The present paper assesses whether the adoption of Industry 4.0 technologies can be related to backshoring. It does so by -firstly- investigating the implementation of such technologies by industrial firms with foreign production plants, the experiences and intentions of these firms regarding the location of production activities, and -secondly- by analyzing backshoring cases among them. It finds that backshoring is a rare phenomenon, and it is questionable whether there is a correlation, left a...
#1Jacopo Canello (UG: University of Groningen)H-Index: 4
This paper exploits novel data on Italian manufacturing firms to investigate how mimetic isomorphism influences offshore outsourcing and backshoring decisions among micro and small enterprises (MSE...
#1Carmen Martínez-Mora (University of Alicante)H-Index: 2
#2Fernando Merino (University of Murcia)H-Index: 8
#1James Bostock (University of Derby)H-Index: 3
#2Richard Breese (SHU: Sheffield Hallam University)H-Index: 6
Helping individuals and teams achieve their goals by being resilient is an established research field in sport. How sport organisations can be resilient in adversity is comparatively neglected, so ...
#1Diletta PegoraroH-Index: 2
#2Lisa De ProprisH-Index: 23
Last. Agnieszka ChidlowH-Index: 8
view all 3 authors...
1 CitationsSource
#1Movin SequeiraH-Index: 2
#2Per HilletofthH-Index: 19
Last. Anders AdlemoH-Index: 4
view all 3 authors...