The reshoring decision under uncertainty in the post-COVID-19 era
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 17 January 2022
Issue publication date: 21 October 2022
Abstract
Purpose
Using insights from the supply chain resilience perspective and the international business literature, this study aims to investigate the determinants of firms’ decisions to reshore manufacturing under the high levels of uncertainty brought about by the ongoing US–China trade war and COVID-19 pandemic.
Design/methodology/approach
The proposed conceptual framework is tested using survey data collected from 702 Taiwanese firms with manufacturing in China. The firms were drawn from a database compiled by Taiwan’s Ministry of Economic Affairs.
Findings
The results show that two supply chain factors (tariffs and supply chain completeness) and two non-location-bound factors (labor cost and material cost) are critical determinants of the decision to reshore under uncertainty.
Originality/value
This research elucidates and empirically validates several factors that influence the reshoring decision in uncertain environments. The findings provide valuable theoretical, practical and strategic insights into how firms should manage their value chains in the post-COVID-19 era.
Keywords
Acknowledgements
The authors thank Professor Mele Cristina and two anonymous reviewers for their insightful and constructive comments. This research was supported by grants from the Ministry of Science and Technology in Taiwan (MOST 108–2410-H-002–125-SS3 and MOST 109–2410-H-194–034-SS2).
Citation
Chen, H., Hsu, C.-W., Shih, Y.-Y. and Caskey, D. (2022), "The reshoring decision under uncertainty in the post-COVID-19 era", Journal of Business & Industrial Marketing, Vol. 37 No. 10, pp. 2064-2074. https://doi.org/10.1108/JBIM-01-2021-0066
Publisher
:Emerald Publishing Limited
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