Manufacturing Back-Reshoring - An Exploratory Approach for Hypotheses Development

Over the past years, use of the terms like “on-shoring”, “re-shoring” and “back-shoring” has multiplied dramatically, especially in economics journalism and in consulting firms’ white papers. More recently, the topic has also attracted academic attention. Notwithstanding this increasing attention, reliable and quantitative evidence on the extent of the back-shoring phenomenon is scanty and often of anecdotal nature. Moreover, definition and characterization of such a phenomenon are still not definitive. In this paper, we focus our attention on the theoretical conceptualization of the back-reshoring phenomenon and summarize the base of knowledge currently available. At the same time, we formulate an operative definition of the investigated phenomenon within a comprehensive theoretical framework. We also define a set of research proposals to be analysed in future research, on the basis of both, a literature review and preliminary evidence provided by our dataset “Uni-CLUB MoRe Back-reshoring”, developed as part of a research project jointly undertaken by scholars belonging to the Universities of Catania, L’Aquila, Udine, Bologna and Reggio Emilia.

[1]  H. Barkema,et al.  FOREIGN ENTRY, CULTURAL BARRIERS, AND LEARNING , 1996 .

[2]  Wendy L. Tate,et al.  Offshoring and Reshoring: An Update on the Manufacturing Location Decision , 2013 .

[3]  Steffen Kinkel,et al.  Drivers and antecedents of manufacturing offshoring and backshoring—A German perspective , 2009 .

[4]  John Dawson,et al.  Failure in international retailing: research propositions , 2003 .

[5]  J. Mata,et al.  Closure and divestiture by foreign entrants: the impact of entry and post‐entry strategies , 2000 .

[6]  Wen-Chi Liao,et al.  Inshoring: The Geographic Fragmentation of Production and Inequality , 2011 .

[7]  A. Lewin,et al.  Co-evolution of global sourcing: The need to understand the underlying mechanisms of firm-decisions to offshore , 2011 .

[8]  Finbarr Livesey,et al.  The Need for a New Understanding of Manufacturing and Industrial Policy in Leading Economies , 2012, Innovations: Technology, Governance, Globalization.

[9]  Stephan Manning,et al.  From Blind Spots to Hotspots: How Knowledge Services Clusters Develop and Attract Foreign Investment , 2010 .

[10]  Ming Zeng,et al.  Do exits proxy for a liability of foreigners? The case of Japanese exits from the United States , 2002 .

[11]  W. Mitchell,et al.  Asset Divestiture Following Horizontal Acquisitions: A Dynamic View , 2001 .

[12]  Mark Palmer,et al.  International Retail Restructuring and Divestment: The Experience of Tesco , 2004 .

[13]  Jonathan L Calof,et al.  Adapting to foreign markets: Explaining internationalization , 1995 .

[14]  Ele Reiljan,et al.  Reasons for de-internationalization: an analysis of Estonian manufacturing companies , 2004 .

[15]  Gabriel R. G. Benito Divestment of foreign production operations , 1997 .

[16]  Jan Hendrik Fisch,et al.  The effect of operational flexibility on decisions to withdraw from foreign production locations , 2012 .

[17]  Michael C. McDermott The Europeanization of CPC International: manufacturing and marketing implications , 1996 .

[18]  Jiatao Li Foreign entry and survival: effects of strategic choices on performance in international markets , 1995 .

[19]  Lisa M. Ellram,et al.  Offshoring, Reshoring and the Manufacturing Location Decision , 2013 .

[20]  Michael E. Porter,et al.  End-game Strategies for Declining Industries , 1989 .

[21]  Ravi Aron,et al.  Getting offshoring right. , 2005, Harvard business review.

[22]  John Ferreira,et al.  Does offshoring still make sense , 2009 .

[23]  J. Boddewyn Foreign Divestment: Magnitude and Factors , 1979 .

[24]  Torben Pedersen,et al.  Uncovering the Hidden Costs of Offshoring: The Interplay of Complexity, Organizational Design, and Experience , 2012 .

[25]  Vivien Procher,et al.  Home Firm Performance after Foreign Investments and Divestitures , 2010 .

[26]  Gabriel R. G. Benito,et al.  Divestment and international business strategy , 2005 .

[27]  Rene Belderbos,et al.  Antidumping and foreign divestment: Japanese electronics multinationals in the EU , 2003 .

[28]  Silvia Massini,et al.  A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent , 2008 .

[29]  M. Casson,et al.  A Theory of Cooperation in International Business , 2010 .

[30]  Ravi Madhavan,et al.  Divestiture and Firm Performance: A Meta-Analysis , 2010 .

[31]  Romeo V. Turcan,et al.  Mitigating theoretical and coverage biases in the design of theory-building research: an example from international entrepreneurship , 2010 .

[32]  Sergio Mariotti,et al.  Tendenze degli investimenti diretti esteri dopo la crisi finanziaria: che accade? , 2009 .

[33]  E. Hartmann,et al.  Offshoring: Dimensions and diffusion of a new business concept , 2006 .

[34]  Eugene D. Hahn,et al.  Separable but not equal: The location determinants of discrete services offshoring activities , 2009 .

[35]  Gary L. Guenther Federal Tax Benefits for Manufacturing: Current Law, Legislative Proposals, and Issues for the 112th Congress [September 20, 2012] , 2012 .

[36]  J. J. Boddewyn International divestment : a survey of corporate experience , 1976 .

[37]  A. Lewin,et al.  Why are companies offshoring innovation? The emerging global race for talent , 2009 .

[38]  Jiatao Li,et al.  CEO Hubris and Firm Risk Taking in China: The Moderating Role of Managerial Discretion , 2010 .

[39]  Romeo V. Turcan De-Internationalization and the Small Firm , 2003 .

[40]  K. Eisenhardt Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[41]  Gabriel R. G. Benito,et al.  Towards more realistic conceptualisations of foreign operation modes , 2009 .

[42]  Steffen Kinkel,et al.  Development, motives and employment effects of manufacturing offshoring of German SMEs , 2007 .

[43]  Christine Rifflart,et al.  Who Produces for Whom in the World Economy? (Qui Produit Pour Qui Dans L’Économie Mondiale?) , 2011 .

[44]  Heather Berry,et al.  When Do Firms Divest Foreign Operations? , 2013, Organ. Sci..

[45]  Michel Ghertman,et al.  Foreign Subsidiary and Parents' Roles During Strategic Investment and Divestment Decisions , 1988 .

[46]  Jagdish C. Sachdev,et al.  Disinvestment: A Corporate Failure or a Strategic Success , 1976 .

[47]  Mark Casson International divestment and restructuring decisions : with special reference to the motor industry , 1986 .

[48]  Jiatao Li,et al.  Comparative Business Failures of Foreign-Controlled Firms in the United States , 1991 .

[49]  Rene Belderbos,et al.  Foreign investment, divestment and relocation by Japanese electronics firms in East Asia , 2006 .

[50]  T. Pedersen,et al.  The organizational design of offshoring: Taking stock and moving forward , 2013 .

[51]  Anand Swaminathan,et al.  The diffusion of foreign divestment from Burma , 2014 .

[52]  Romeo V. Turcan De-Internationalization: A Conceptualization , 2011 .

[53]  Karsten Olsen Productivity Impacts of Offshoring and Outsourcing: A Review , 2006 .

[54]  Henry Mintzberg Patterns in Strategy Formation , 1978, International Studies of Management & Organization.

[55]  Matthias Brauer,et al.  What Have We Acquired and What Should We Acquire in Divestiture Research? A Review and Research Agenda , 2006 .

[56]  Kamel Mellahi,et al.  The De-Internationalization Process: A Case Study of Marks and Spencer , 2003 .

[57]  Sijun Shao The end of cheap labour in China? Implications for foreign invested firms of a new breed of 'economic man' , 2006 .

[58]  P. K. Jagersma,et al.  International Divestments: An Empirical Perspective , 2003 .

[59]  J. Dunning Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism , 1995 .

[60]  John V. Gray,et al.  The Reshoring Phenomenon: What Supply Chain Academics Ought to know and Should Do , 2013 .

[61]  Robert T. Hamilton,et al.  Why managers divest—Evidence from New Zealand's largest companies , 1993 .

[62]  Bjoern Schmeisser A Systematic Review of Literature on Offshoring of Value Chain Activities , 2013 .

[63]  Ulrike Malmendier,et al.  CEO Overconfidence and Corporate Investment , 2002 .

[64]  P D Gardiner,et al.  De‐internationalisation and global strategy: the case of British Telecommunications (BT) , 2007 .