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1 – 10 of 29Malin Johansson and Jan Olhager
The purpose of this paper is to present recent empirical results concerning offshoring and backshoring of manufacturing from and to Sweden, to increase the understanding of…
Abstract
Purpose
The purpose of this paper is to present recent empirical results concerning offshoring and backshoring of manufacturing from and to Sweden, to increase the understanding of manufacturing relocation in an international context. In particular, extent, geographies, type of production, drivers, and benefits of moving manufacturing in both directions are investigated.
Design/methodology/approach
The study is based on survey data from 373 manufacturing plants. The same set of questions is used for both offshoring and backshoring between 2010 and 2015, which allows similarities and differences in decision-making and results between the two relocation directions to be identified.
Findings
There are many significant differences between offshoring and backshoring projects. Labour cost is the dominating factor in offshoring, as driver and benefit, while backshoring is related to many drivers and benefits, such as quality, lead-time, flexibility, access to skills and knowledge, access to technology, and proximity to R&D. This is also reflected in the type of production that is relocated; labour-intensive production is offshored and complex production is backshored.
Research limitations/implications
Plants that have both offshored and backshored think and act differently than plants that have only offshored or backshored, which is why it is important to distinguish between these plant types in the context of manufacturing relocations.
Practical implications
The experience of Swedish manufacturing plants reported here can be used as a point of reference for internal manufacturing operations.
Originality/value
The survey design allows a unique comparison between offshoring and backshoring activity. Since Swedish firms in general have been quite active in rearranging their manufacturing footprint and have experience from movements in both directions, it is an appropriate geographical area to study in this context.
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Laura Macchion and Rosanna Fornasiero
Supply chain (SC) configuration has gained increased acceptance as an important issue when evaluating new customization possibilities and this evidence has contributed to the…
Abstract
Purpose
Supply chain (SC) configuration has gained increased acceptance as an important issue when evaluating new customization possibilities and this evidence has contributed to the strengthening of the debate between global vs local production locations. This work contributes in enrichment of this topic by studying how local or global SC location decisions influence performances by considering a SC point of view, in terms of cost and time, in traditional and customized productions.
Design/methodology/approach
A discrete event simulation approach, based on experimentation through executable configurations, was used to evaluate different SC scenarios for customized as well as traditional products within the footwear industry.
Findings
The results indicated that to identify proper SC locations, existing trade-offs between the time and cost performances should be studied, avoiding the evaluation of a single performance independently and, instead, adopting a complete SC point of view while considering these performances.
Research limitations/implications
This evidence has contributed to the reinforcement of the discussion between far-shore destinations vs near-shore production locations. Further studies are encouraged to adopt the present model, in which addition of other variables such as specific manufacturing competences to differentiate suppliers, both local and global suppliers, or the possibility of realizing special types of product customization required by final consumers can be done.
Practical implications
The paper contributes to the academic and practitioners' debate by proposing a systemic approach to assess SCs’ performances in customized contexts and to compare them to traditional collections. Results indicate that cost and time performance must find a balance that does not necessarily correspond to an exclusively local or global production.
Originality/value
This work contributes to the SC configuration issue by considering the trade-off between efficiency and effectiveness (i.e. SC costs and SC times) for customized productions by reviving and enriching it with an SC perspective in customization contexts.
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Haihan Li, Per Hilletofth, David Eriksson and Wendy Tate
This study aims to investigate the manufacturing reshoring decision-making content from an Eclectic Paradigm perspective.
Abstract
Purpose
This study aims to investigate the manufacturing reshoring decision-making content from an Eclectic Paradigm perspective.
Design/methodology/approach
Data were collected through a six-step systematic literature review on factors influencing manufacturing reshoring decision-making. The review is based on 100 peer-reviewed journal papers discussing reshoring decision-making contents published from 2009 to 2022.
Findings
In total, 80 decision factors were extracted and then categorized into resource-seeking (8%), market-seeking (11%), efficiency-seeking (41%) and strategic asset-seeking (16%) advantages. Additionally, 24% of these were identified as hybrid, which means that they were classified into multiple categories. Some decision factors were further identified as reshoring influencing factors (i.e. drivers, enablers and barriers).
Research limitations/implications
Scholars need to consider what other theories can be used or developed to identify and evaluate the decision factors (determinants) of manufacturing reshoring as well as how currently adopted theory can be further advanced to create clearer and comprehensive theoretical frameworks.
Practical implications
This research underscores the importance of developing clearer and more comprehensive theoretical frameworks. For practitioners, understanding the multifaceted nature of decision factors could enhance strategic decision-making regarding reshoring initiatives.
Originality/value
To the best of the authors’ knowledge, this is the first study to investigate the value and practicality of the Eclectic Paradigm in categorizing factors in manufacturing reshoring decision-making content and presents in-depth theoretical classifications. In addition, it bridges the gap between decision factors and influencing factors in the decision-making content research realm.
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Marcos Dieste, Guido Orzes, Giovanna Culot, Marco Sartor and Guido Nassimbeni
A positive outlook on the impact of Industry 4.0 (I4.0) on sustainability prevails in the literature. However, some studies have highlighted potential areas of concern that have…
Abstract
Purpose
A positive outlook on the impact of Industry 4.0 (I4.0) on sustainability prevails in the literature. However, some studies have highlighted potential areas of concern that have not yet been systematically addressed. The goal of this study is to challenge the assumption of a sustainable Fourth Industrial Revolution by (1) identifying the possible unintended negative impacts of I4.0 technologies on sustainability; (2) highlighting the underlying motivations and potential actions to mitigate such impacts; and (3) developing and evaluating alternative assumptions on the impacts of I4.0 technologies on sustainability.
Design/methodology/approach
Building on a problematization approach, a systematic literature review was conducted to develop potential alternative assumptions about the negative impacts of I4.0 on sustainability. Then, a Delphi study was carried out with 43 experts from academia and practice to evaluate the alternative assumptions. Two rounds of data collection were performed until reaching the convergence or stability of the responses.
Findings
The results highlight various unintended negative effects on environmental and social aspects that challenge the literature. The reasons behind the high/low probability of occurrence, the severity of each impact in the next five years and corrective actions are also identified. Unintended negative environmental effects are less controversial than social effects and are therefore more likely to generate widely accepted theoretical propositions. Finally, the alternative hypothesis ground is partially accepted by the panel, indicating that the problematization process has effectively opened up new perspectives for analysis.
Originality/value
This study is one of the few to systematically problematize the assumptions of the I4.0 and sustainability literature, generating research propositions that reveal several avenues for future research.
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Matteo Podrecca, Guido Orzes, Marco Sartor and Guido Nassimbeni
This paper aims to offer a long-term systematic picture of the evolution of manufacturing offshoring (in terms of intensity, geography and drivers) highlighting the changes in the…
Abstract
Purpose
This paper aims to offer a long-term systematic picture of the evolution of manufacturing offshoring (in terms of intensity, geography and drivers) highlighting the changes in the surrounding context and the resulting transitions points (“points in time”) that have shaped its development path.
Design/methodology/approach
Three statistical tools were adopted on a dataset of 644 cases. First, the authors resorted to multiple structural change tests to identify the transition points. Second, the authors explored offshoring geography by conducting a network analysis. Finally, the authors adopted gravity models to shed light on offshoring drivers.
Findings
Results highlight three offshoring phases: expansion (2002–2006), reconsideration (2007–2009) and rationalization (2010 onwards). During the first phase, characterized by economic growth, firms were mainly interested in economic savings; offshoring to low-cost countries was the prevailing location strategy. Subsequently, during the economic crisis, the number of cases declined and the main drivers became market-based factors together with the research for cost savings. Finally, in the third phase, when the economy was still stagnating and new manufacturing technologies appeared, the number of offshoring cases has further decreased, and technological- and market-based factors have become the main location drivers.
Originality/value
The study is the first to adopt a systematic, empirical and quantitative approach to analyze the evolution of the manufacturing offshoring considering both the phenomenon itself and the triggering changes in the surrounding context. In doing this, the authors also tested the importance of considering the point in time in offshoring strategies.
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