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Towards right-shoring: a framework for off-and re-shoring decision making

Author

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  • Claire Joubioux

    () (Maastricht University)

  • Evelyne Vanpoucke

    () (Université Libre de Bruxelles)

Abstract

Abstract Location decisions are crucial for manufacturing plants. While current research mainly stresses the cost considerations of location decisions, this research focusses on a more comprehensive decision-making process. Based on analyzing the motivations for off-and re-shoring, we present a decision-making framework which will help companies to ‘right-shore’. Through a multiple case study approach in the aeronautics industry, an industry known for its technical complexity and innovative nature, we will validate and broaden our initial decision-making framework based on literature. While analyzing this framework, it became apparent that the main motivation for offshoring in the aeronautic industry is far from being restricted to cost-cutting considerations. More specific, companies in this industry are willing to develop sustainable commercial partnerships in emerging countries to benefit from new capacities and resources. In the same vein, re-shoring decisions are grounded on long-term perspectives and are carefully balanced. While providing a comprehensive framework for offshoring and re-shoring decisions, our framework enables companies to make better informed decisions for choosing the right location for their plants.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:opmare:v:9:y:2016:i:3:d:10.1007_s12063-016-0115-y
    DOI: 10.1007/s12063-016-0115-y
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    References listed on IDEAS

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    1. 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.
    2. John Dunning, 2001. "The Eclectic (OLI) Paradigm of International Production: Past, Present and Future," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 173-190.
    3. 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.
    4. Serghei Margulescu & Elena Margulescu, 2014. "Reshoring in Manufacturing and Services," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 2(1), pages 90-95, May.
    5. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    6. Mark Casson & Nigel Wadeson, 2013. "The Economic Theory of International Supply Chains: A Systems View," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 20(2), pages 163-186, July.
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    Cited by:

    1. repec:spr:opmare:v:10:y:2017:i:3:d:10.1007_s12063-017-0124-5 is not listed on IDEAS
    2. repec:eee:proeco:v:199:y:2018:i:c:p:199-208 is not listed on IDEAS

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