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Development, motives and employment effects of manufacturing offshoring of German SMEs

Author

Listed:
  • Steffen Kinkel
  • Gunter Lay
  • Spomenka Maloca

Abstract

This paper examines the extent, the target regions, the motives and the employment effects of manufacturing offshoring on the basis of a survey of 1450 companies in the German manufacturing industry. The findings show that German SMEs particularly favour the 'physically and mentally close' new EU member states over more distant Asian countries. Simultaneously, they do not put the same emphasis on market and customer orientation as larger companies do. This has to be critically reviewed, as cost-driven manufacturing offshoring has a more negative impact on the employment situation at the home base than market-driven activities. The analysis also points out that manufacturing offshoring cannot be described as a one-way road. Backsourcing activities obtain a significant share and are mirroring the trend in offshoring with a time lag of two years. The paper closes with suggestions on how these findings should be regarded in future research.

Suggested Citation

  • Steffen Kinkel & Gunter Lay & Spomenka Maloca, 2007. "Development, motives and employment effects of manufacturing offshoring of German SMEs," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 4(3), pages 256-276.
    • Handle: RePEc:ids:ijesbu:v:4:y:2007:i:3:p:256-276
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    Citations

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    Cited by:

    1. Schmiele, Anja, 2009. "Drivers for international innovation activities in developed and emerging countries," ZEW Discussion Papers 09-064, ZEW - Leibniz Centre for European Economic Research.
    2. Claire Joubioux & Evelyne Vanpoucke, 2016. "Towards right-shoring: a framework for off-and re-shoring decision making," Operations Management Research, Springer, vol. 9(3), pages 117-132, December.
    3. Beckert, Bernd & Buschak, Daniela & Graf, Birgit & Hägele, Martin & Jäger, Angela & Moll, Cornelius & Schmoch, Ulrich & Wydra, Sven, 2016. "Automatisierung und Robotik-Systeme," Studien zum deutschen Innovationssystem 11-2016, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    4. Dachs, Bernhard & Borowiecki, Marcin & Kinkel, Steffen & Schmall, Thomas Christian, 2012. "The Offshoring of Production Activities in European Manufacturing," MPRA Paper 42973, University Library of Munich, Germany.
    5. Fernando Merino & Cristina Di Stefano & Luciano Fratocchi, 2021. "Back-shoring vs near-shoring: a comparative exploratory study in the footwear industry," Operations Management Research, Springer, vol. 14(1), pages 17-37, June.
    6. Dachs, Bernhard & Kinkel, Steffen & Jäger, Angela, 2019. "Bringing it all back home? Backshoring of manufacturing activities and the adoption of Industry 4.0 technologies," Journal of World Business, Elsevier, vol. 54(6), pages 1-1.
    7. Anja Schmiele, 2012. "Drivers for international innovation activities in developed and emerging countries," The Journal of Technology Transfer, Springer, vol. 37(1), pages 98-123, February.
    8. Ancarani, Alessandro & Di Mauro, Carmela & Fratocchi, Luciano & Orzes, Guido & Sartor, Marco, 2015. "Prior to reshoring: A duration analysis of foreign manufacturing ventures," International Journal of Production Economics, Elsevier, vol. 169(C), pages 141-155.
    9. G. Talamo & F. Guarneri, 2016. "A New Phenomenon: Backshoring and the Italian Case," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 2-3, pages 405-432.
    10. Fuster, Begoña & Lillo-Bañuls, Adelaida & Martínez-Mora, Carmen, 2020. "Reshoring of services and employment," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 233-246.
    11. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
    12. Kinkel, Steffen & Lichtner, Ralph, 2018. "Globalisierungs- und Verlagerungstendenzen bei F&E-Tätigkeiten: Trendanalyse," Working Paper Forschungsförderung 084, Hans-Böckler-Stiftung, Düsseldorf.
    13. Amy V. Benstead & Mark Stevenson & Linda C. Hendry, 2017. "Why and how do firms reshore? A contingency-based conceptual framework," Operations Management Research, Springer, vol. 10(3), pages 85-103, December.
    14. Stentoft, Jan & Mikkelsen, Ole Stegmann & Jensen, Jesper Kronborg & Rajkumar, Christopher, 2018. "Performance outcomes of offshoring, backshoring and staying at home manufacturing," International Journal of Production Economics, Elsevier, vol. 199(C), pages 199-208.

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