Remanufacturing for Enterprises in Offshore and Onshore Operations

Remanufacturing, as an effective means to achieve sustainable development, has garnered widespread attention from governments, businesses, and consumers. While there has been significant research on closed-loop supply chain in remanufacturing, the offshore aspects of remanufacturing enterprises have been relatively overlooked. This paper aims to address this gap by examining the strategic decisions involved in offshore remanufacturing, with a focus on the arm’s length regulation. In our investigation, we analyzed the case of an enterprise presented with an opportunity to engage in remanufacturing across borders. Our findings shed light on the complexities involved in strategic decision-making when considering offshore scenarios. Contrary to conventional wisdom, we discovered that the remanufacturing strategy may not always be advantageous for multinational corporations. In some cases, when faced with the option of cross-border operations, the original equipment manufacturer (OEM) may choose to abstain from remanufacturing altogether. Furthermore, this study identifies threshold conditions that influence the OEM's choice of remanufacturing decisions. These conditions serve as crucial benchmarks for multinational corporations to consider when evaluating their participation in remanufacturing initiatives. By providing these insights, we hope to contribute to a more comprehensive understanding of the strategic considerations associated with offshore remanufacturing.