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Consumer Reshoring Sentiment and Animosity: Expanding Our Understanding of Market Responses to Reshoring

Author

Listed:
  • Silvia Grappi

    (University of Modena and Reggio Emilia)

  • Simona Romani

    (LUISS Guido Carli)

  • Richard P. Bagozzi

    (University of Michigan)

Abstract

Although an increasing body of research has focused attention on reshoring, namely, a company’s decision to relocate activities back to the home-country, how and when reshoring impacts market responses remains largely understudied and requires specific theoretical and empirical consideration. Our study complements existing research on reshoring by adopting a demand-side perspective. Through multiple, experimental and survey-based studies, conducted in two countries (Italy and the US), we verified that the interplay between Consumer Reshoring Sentiment (CRS) and Consumer Animosity (CA) leads to specific emotional reactions (gratitude and relief) which, in their turn, affect relevant market responses (positive word of mouth, willingness to buy, advocacy behaviors). Our work provides interesting insights for practitioners and international managers evaluating reshoring; they can capitalize on the positive market responses to reshoring by considering both reshoring sentiments characterizing the home-country market and consumer animosity associated with tensions between the countries involved in the reshoring decision.

Suggested Citation

  • Silvia Grappi & Simona Romani & Richard P. Bagozzi, 2020. "Consumer Reshoring Sentiment and Animosity: Expanding Our Understanding of Market Responses to Reshoring," Management International Review, Springer, vol. 60(1), pages 69-95, February.
    • Handle: RePEc:spr:manint:v:60:y:2020:i:1:d:10.1007_s11575-019-00399-2
    DOI: 10.1007/s11575-019-00399-2
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    Cited by:

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    2. Xie, Lei & Liu, Yunping & Han, Hongshuai & (Martin) Qiu, Chun, 2023. "Outsourcing or reshoring? A manufacturer's sourcing strategy in the presence of government subsidy," European Journal of Operational Research, Elsevier, vol. 308(1), pages 131-149.
    3. Kim, Yun Geon & Chung, Byung Do, 2022. "Closed-loop supply chain network design considering reshoring drivers," Omega, Elsevier, vol. 109(C).
    4. Luíza Fonseca & Angela da Rocha, 2021. "Rethinking Offshoring and International Marketing Strategies during the COVID-19 Pandemic," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 25(Spe), pages 200216-2002.
    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. Woldt, Jason & Godfrey, Michael, 2022. "Is there a home field advantage? The impact of shareholder wealth from U.S. manufacturing location decisions: A comparative analysis," International Journal of Production Economics, Elsevier, vol. 248(C).
    7. Li, Xinwei & Tse, Ying Kei & Zhang, Minhao & Phi, Hoang Dinh, 2023. "Impact of relocation strategy on brand trustworthiness and word-of-mouth: Experimental vignette research on the US fashion industry," International Journal of Production Economics, Elsevier, vol. 257(C).
    8. Młody Michał & Stępień Beata, 2020. "Principles of reshoring development in luxury goods sector," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 140-158, June.
    9. Młody Michał & Stępień Beata, 2020. "Principles of reshoring development in luxury goods sector," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 140-158, June.
    10. Callaghan, Christian William, 2021. "Consequences of deindustrialisation for globalisation: Insights for international business," International Business Review, Elsevier, vol. 30(3).

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