IDEAS home Printed from https://ideas.repec.org/a/spr/opmare/v10y2017i3d10.1007_s12063-017-0124-5.html
   My bibliography  Save this article

Why and how do firms reshore? A contingency-based conceptual framework

Author

Listed:
  • Amy V. Benstead

    (Lancaster University)

  • Mark Stevenson

    (Lancaster University)

  • Linda C. Hendry

    (Lancaster University)

Abstract

Much of the growing body of reshoring literature has focused on why firms reverse a prior location decision. While valuable, this work needs extending to how the decision to reshore is operationalised. Using a two-stage approach, this paper presents a conceptual framework that covers both why and how firms reshore. The framework also utilises contingency theory to identify the factors that influence these decisions. It is therefore claimed to be more comprehensive than others frameworks found in the literature. First, a systematic literature review deductively develops an initial framework. Second, a revised version of the framework is presented using evidence from a single, exemplar case of captive reshoring in the textiles industry. The case evidence identifies new factors and extends a typology of reshoring decisions proposed in the literature to more accurately reflect the dynamic, complex, and incremental nature of the onshore-offshore-reshore location and ownership decision.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:opmare:v:10:y:2017:i:3:d:10.1007_s12063-017-0124-5
    DOI: 10.1007/s12063-017-0124-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12063-017-0124-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s12063-017-0124-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roza, Marja & Van den Bosch, Frans A.J. & Volberda, Henk W., 2011. "Offshoring strategy: Motives, functions, locations, and governance modes of small, medium-sized and large firms," International Business Review, Elsevier, vol. 20(3), pages 314-323, June.
    2. Leo Dana & Robert Hamilton & Brooke Pauwels, 2007. "Evaluating offshore and domestic production in the apparel industry: The small firm’s perspective," Journal of International Entrepreneurship, Springer, vol. 5(3), pages 47-63, December.
    3. Mukherjee, Debmalya & Gaur, Ajai S. & Datta, Avimanyu, 2013. "Creating value through offshore outsourcing: An integrative framework," Journal of International Management, Elsevier, vol. 19(4), pages 377-389.
    4. Dachs, Bernhard & Zanker, Christoph, 2015. "Backshoring of Production Activities in European Manufacturing," MPRA Paper 63868, University Library of Munich, Germany.
    5. Kedia, Ben L. & Mukherjee, Debmalya, 2009. "Understanding offshoring: A research framework based on disintegration, location and externalization advantages," Journal of World Business, Elsevier, vol. 44(3), pages 250-261, July.
    6. Caniato, Federico & Elia, Stefano & Luzzini, Davide & Piscitello, Lucia & Ronchi, Stefano, 2015. "Location drivers, governance model and performance in service offshoring," International Journal of Production Economics, Elsevier, vol. 163(C), pages 189-199.
    7. Andrea S. Patrucco & Vittoria G. Scalera & Davide Luzzini, 2016. "Risks and governance modes in offshoring decisions: linking supply chain management and international business perspectives," Post-Print hal-01430915, HAL.
    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. Weifeng Zhai & Shiling Sun & Guangxing Zhang, 2016. "Reshoring of American manufacturing companies from China," Operations Management Research, Springer, vol. 9(3), pages 62-74, December.
    10. David Bailey & Lisa De Propris, 2014. "Editor's choice Manufacturing reshoring and its limits: the UK automotive case," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 7(3), pages 379-395.
    11. Alison Ashby, 2016. "From global to local: reshoring for sustainability," Operations Management Research, Springer, vol. 9(3), pages 75-88, December.
    12. Lydia Bals & Jon F. Kirchoff & Kai Foerstl, 2016. "Exploring the reshoring and insourcing decision making process: toward an agenda for future research," Operations Management Research, Springer, vol. 9(3), pages 102-116, December.
    13. Gylling, Michael & Heikkilä, Jussi & Jussila, Kari & Saarinen, Markku, 2015. "Making decisions on offshore outsourcing and backshoring: A case study in the bicycle industry," International Journal of Production Economics, Elsevier, vol. 162(C), pages 92-100.
    14. 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.
    15. Holweg, Matthias & Reichhart, Andreas & Hong, Eui, 2011. "On risk and cost in global sourcing," International Journal of Production Economics, Elsevier, vol. 131(1), pages 333-341, May.
    16. Pearce, John A., 2014. "Why domestic outsourcing is leading America's reemergence in global manufacturing," Business Horizons, Elsevier, vol. 57(1), pages 27-36.
    17. 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.
    18. Xiaole Wu & Fuqiang Zhang, 2014. "Home or Overseas? An Analysis of Sourcing Strategies Under Competition," Management Science, INFORMS, vol. 60(5), pages 1223-1240, May.
    19. Pamela K. Robinson & Linda Hsieh, 2016. "Reshoring: a strategic renewal of luxury clothing supply chains," Operations Management Research, Springer, vol. 9(3), pages 89-101, December.
    20. Zorzini, Marta & Stevenson, Mark & Hendry, Linda C., 2014. "Coordinating offshored operations in emerging economies: A contingency-based study," International Journal of Production Economics, Elsevier, vol. 153(C), pages 323-339.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luciano Fratocchi & Julia Mayer, 2023. "The impact of environmental and social sustainability on the reshoring decision making and implementation process: insights from the bicycle industry," Operations Management Research, Springer, vol. 16(2), pages 574-593, June.
    2. Stefano Elia & Luciano Fratocchi & Paolo Barbieri & Albachiara Boffelli & Matteo Kalchschmidt, . "Post-pandemic reconfiguration from global to domestic and regional value chains: the role of industrial policies," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    3. Luíza Neves Marques Fonseca & Angela Rocha, 2023. "Setbacks, interruptions and turnarounds in the internationalization process: a bibliometric and literature review of de-internationalization," Management Review Quarterly, Springer, vol. 73(3), pages 1351-1384, September.
    4. Bart Kamp & Juan José Gibaja, 2021. "Adoption of digital technologies and backshoring decisions: is there a link?," Operations Management Research, Springer, vol. 14(3), pages 380-402, December.
    5. Silvia Cosimato & Roberto Vona, 2021. "Digital Innovation for the Sustainability of Reshoring Strategies: A Literature Review," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    6. 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.
    7. Johansson, Malin & Olhager, Jan, 2018. "Comparing offshoring and backshoring: The role of manufacturing site location factors and their impact on post-relocation performance," International Journal of Production Economics, Elsevier, vol. 205(C), pages 37-46.
    8. Albachiara Boffelli & Luciano Fratocchi & Matteo Kalchschmidt & Susana Cristina Lima da Costa e Silva, 2021. "Doing the right thing or doing things right: what is better for a successful manufacturing reshoring?," Operations Management Research, Springer, vol. 14(1), pages 1-16, June.
    9. Albachiara Boffelli & Malin Johansson, 2020. "What do we want to know about reshoring? Towards a comprehensive framework based on a meta-synthesis," Operations Management Research, Springer, vol. 13(1), pages 53-69, June.
    10. 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.
    11. Henkel, Malin & Boffelli, Albachiara & Olhager, Jan & Kalchschmidt, Matteo, 2022. "A case survey of offshoring–backshoring cases: The influence of contingency factors," International Journal of Production Economics, Elsevier, vol. 253(C).
    12. 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.
    13. McIvor, Ronan & Bals, Lydia, 2021. "A multi-theory framework for understanding the reshoring decision," International Business Review, Elsevier, vol. 30(6).
    14. Movin Sequeira & Anders Adlemo & Per Hilletofth, 2023. "A hybrid fuzzy-AHP-TOPSIS model for evaluation of manufacturing relocation decisions," Operations Management Research, Springer, vol. 16(1), pages 164-191, March.
    15. Paolo Barbieri & Albachiara Boffelli & Stefano Elia & Luciano Fratocchi & Matteo Kalchschmidt & Danny Samson, 2020. "What can we learn about reshoring after Covid-19?," Operations Management Research, Springer, vol. 13(3), pages 131-136, December.
    16. Paolo Barbieri & Clio Dosi & Matteo Vignoli, 2023. "Implementing reshoring: insights and principles from a longitudinal case study in the e-bike industry," Operations Management Research, Springer, vol. 16(2), pages 555-573, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. McIvor, Ronan & Bals, Lydia, 2021. "A multi-theory framework for understanding the reshoring decision," International Business Review, Elsevier, vol. 30(6).
    3. 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.
    4. 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.
    5. Paolo Barbieri & Albachiara Boffelli & Stefano Elia & Luciano Fratocchi & Matteo Kalchschmidt & Danny Samson, 2020. "What can we learn about reshoring after Covid-19?," Operations Management Research, Springer, vol. 13(3), pages 131-136, December.
    6. Movin Sequeira & Anders Adlemo & Per Hilletofth, 2023. "A hybrid fuzzy-AHP-TOPSIS model for evaluation of manufacturing relocation decisions," Operations Management Research, Springer, vol. 16(1), pages 164-191, March.
    7. Piatanesi, Benedetta & Arauzo Carod, Josep Maria, 2019. "An Analysis about reverse offshoring," Working Papers 2072/376030, Universitat Rovira i Virgili, Department of Economics.
    8. Jan Stentoft & Ole Stegman Mikkelsen & Jesper Kronborg Jensen, 2016. "Flexicurity and relocation of manufacturing," Operations Management Research, Springer, vol. 9(3), pages 133-144, December.
    9. Paolo Barbieri & Clio Dosi & Matteo Vignoli, 2023. "Implementing reshoring: insights and principles from a longitudinal case study in the e-bike industry," Operations Management Research, Springer, vol. 16(2), pages 555-573, June.
    10. 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.
    11. Silvia Cosimato & Roberto Vona, 2021. "Digital Innovation for the Sustainability of Reshoring Strategies: A Literature Review," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    12. Johansson, Malin & Olhager, Jan, 2018. "Comparing offshoring and backshoring: The role of manufacturing site location factors and their impact on post-relocation performance," International Journal of Production Economics, Elsevier, vol. 205(C), pages 37-46.
    13. Henkel, Malin & Boffelli, Albachiara & Olhager, Jan & Kalchschmidt, Matteo, 2022. "A case survey of offshoring–backshoring cases: The influence of contingency factors," International Journal of Production Economics, Elsevier, vol. 253(C).
    14. Mohamed M. Dhiaf & Osama F. Atayah & Nohade Nasrallah & Guilherme F. Frederico, 2021. "Thirteen years of Operations Management Research (OMR) journal: a bibliometric analysis and future research directions," Operations Management Research, Springer, vol. 14(3), pages 235-255, December.
    15. Jan Stentoft & Jan Olhager & Jussi Heikkilä & Lisa Thoms, 2016. "Manufacturing backshoring: a systematic literature review," Operations Management Research, Springer, vol. 9(3), pages 53-61, December.
    16. Grappi, Silvia & Romani, Simona & Bagozzi, Richard P., 2018. "Reshoring from a demand-side perspective: Consumer reshoring sentiment and its market effects," Journal of World Business, Elsevier, vol. 53(2), pages 194-208.
    17. Albachiara Boffelli & Malin Johansson, 2020. "What do we want to know about reshoring? Towards a comprehensive framework based on a meta-synthesis," Operations Management Research, Springer, vol. 13(1), pages 53-69, June.
    18. Diletta Pegoraro & Lisa Propris & Agnieszka Chidlow, 2022. "Regional factors enabling manufacturing reshoring strategies: A case study perspective," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 112-133, March.
    19. Weifeng Zhai & Shiling Sun & Guangxing Zhang, 2016. "Reshoring of American manufacturing companies from China," Operations Management Research, Springer, vol. 9(3), pages 62-74, December.
    20. Pourya Pourhejazy & Alison Ashby, 2021. "Reshoring Decisions for Adjusting Supply Chains in a Changing World: A Case Study from the Apparel Industry," IJERPH, MDPI, vol. 18(9), pages 1-13, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:opmare:v:10:y:2017:i:3:d:10.1007_s12063-017-0124-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.