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The purpose of this paper is to identify and prioritise the success factors and challenges related to competitive manufacturing (CM) capabilities in a high-cost environment, and identify their potential to support future reshoring in textile and clothing (T&C) supply chains, with judgements from the practitioners’ perspective.

A Delphi study method is adopted with industry practitioners from the region of Western Sweden. Following a literature review on reshoring to identify relevant factors related to CM capabilities, a multiple round Delphi is designed to rank the success factors and challenges, and to further evaluate the likelihood of the success factors to lead to future reshoring. Additional semi-structured interviews are conducted to provide deeper explanation.

Empirical insights are both conforming to, and deviant from, evidences from extant literature. Moderate agreement is seen among the practitioners on the success factors; time- and product/process-related ones being ranked the highest. Low consensus is reached for the challenges, however, those related to high costs and lack of local resources were key concerns. Some anomalies from previous conception emerge among the challenges regarding increased costs of production, inventory and product variety trade-offs, and low skillset presence.

The paper contributes to reshoring research by identifying and prioritising value-driven success factors and cost-related challenges to CM in high-cost environments, for labour-intensive T&C industries. In connection, some interesting paradoxes originate when dealing with multiple success factors.

Valuable insights are generated for informed decision making related to CM and future choice of its location.

Along with the decisive knowledge of the reshoring success factors and challenges, the study offers an interesting T&C practitioners’ perspective.

The purpose of this paper is to explore the de/motivation variables in the delivery of housing microfinance (HMF) in the low-income housing market in Ghana.

The paper relied on a survey of 125 respondents of microfinance institutions (MFIs) to understand the interactions and effects of these variables on HMF delivery in Ghana. Descriptive and bivariate statistical methods were used to analyse the data.

The findings revealed that both internal and external variables motivate MFIs to engage in the low-income housing market. These variables are: MFIs desire for expansion, the potential size of the low-income housing market, the market potential for MFIs growth, the availability of local resources, unique features and products of the market, low-income housing offering an opportunity for leveraging resources and the preference for homeownership than rental among individuals in the low-income segment of the population. However, variables such as capital lock-up in HMF delivery, high-interest rates in the country, high cost and land prices, high cost and price of building materials, lack of sufficient collaterals and the different interest rates required on HMF loans also served as demotivation in the low-income housing market in Ghana.

The paper findings are limited in context to Ghana.

The paper, although limited to Ghana, contributes to the much-needed body of knowledge on low-income housing finance in developing countries.

The paper is the first of its kind in using empirical data to explore the motivational and demotivational variables in the delivery of HMF in a developing country context such as Ghana.

Medical technology (MedTech) is a growth industry, which like other manufacturing sectors has undergone fragmentation of production and emergence of Global Value Chains (GVCs). The purpose of this paper is to compare how two open European economies position themselves competitively within MedTech GVCs: highly developed Switzerland and the emerging Czech Republic.

The research applies a mixed methodology to analyze the performance of each location in the MedTech GVCs. It draws on macroeconomic, industry, trade and a proprietary sample of firm data, combined with onsite interviews.

The economic outcomes and GVC positions differ in both cases, whereas Switzerland focuses on high value-added activities such as R&D and after-sales service. Specialized manufacturing is also located here in spite of high costs. By contrast, the Czech Republic focuses mostly on low value-added activities, like manufacturing disposables, although some domestic innovative companies are notable. The authors generalize four types of firms in the industry, comparing their presence in both locations.

The competitive positions and challenges faced by each location when engaging in MedTech GVCs are summarized and related to economic outcomes. In the Czech Republic, the barriers to upgrading include its business environment, and weak links between education institutions and industry. Switzerland’s high cost structure is offset by adding high value in core competencies. Both countries should protect the inherent advantage their locations offer within responsive European supply chains.

GVC research in the MedTech sector has been limited. There is no comparison of two European countries, and their position in MedTech GVCs, nor of how firms, participate successfully in them.

Contaminated food is a major source of illnesses around the world. This research seeks to learn how people assign responsibility for two food contamination risks and how they allocate costs to reduce these risks to four members of the food supply chain. The aims are to identify differences between countries and test options to control for cultural differences.

A random sample of online panellists from six countries (N = 6,090) was surveyed on how they assigned responsibility for controlling natural and accidental food contamination (traditional food safety) and for controlling intentional contamination (food defense) to farmers, transporters/distributors, retailer grocery stores/restaurants and consumers. They were also asked how they would allocate food safety and defense costs to the four groups. Differences between countries were tested with dummy variables and cultural measures.

In nearly every country, respondents assigned the least responsibility and allocated the smallest cost shares to consumers. In multivariate models, responsibility and cost-share results differed, suggesting that preferences varied by country and that respondents did not allocate costs the same way they assessed responsibility. The food safety and defense models also differed, implying that the respondents believed the two sources of contamination represented different risks.

This is the first study to examine how adults allocate the responsibility and costs for food safety and defense to farmers, transporters/distributors, retailer grocery stores/restaurants and consumers. Other research did not differentiate between these two food risks. This study also compared Hofstede's cultural measures with the recently developed Minkov's cultural measures.

Manufacturing offshoring has received substantial attention within international business studies that have explored where activities are located and how they are governed. However, recent examples of manufacturing relocation to the home country/region have put the advantages of offshoring under scrutiny, since the location of production activities in high-cost countries may have positive impacts in terms of innovation and marketing opportunities. Despite the growing interest in offshoring and “relocations of second degree,” there is a lack of knowledge on the alternative strategies firms may implement after offshoring. This chapter aims to propose a comprehensive framework to summarize and classify the multiple alternatives firms may implement after the initial relocation abroad of manufacturing activities. Based on an extensive literature review and a comparative analysis of Italian case studies, the chapter suggests theoretical advancement in the theory of location of business activities, offering multiple post-offshoring strategic options that may be implemented individually or in combination. In so doing, the analysis also stresses the variety of strategic paths and the complexity of choices concerning manufacturing location, emphasizing reshoring as a nuanced phenomenon and exploring how domestic and foreign locations can complement each other and be mutually reinforcing.

The study investigates the profitability of manufacturing firms backshoring (BS) to Europe. In particular, the article analyses the relation between BS drivers and post-relocation profitability and tests whether this relation is moderated by innovation policies that firms adopt in conjunction with BS.

The empirical model links the post-relocation profitability to BS drivers, firms’ involvement in product innovation and/or adoption of new manufacturing technologies. Data concerning BS initiatives to Europe between 2012 and 2018 extracted from secondary sources have been matched to firms’ balance sheet data.

Results show that responsiveness-driven BS is associated with higher profitability when the relocation is coupled with product innovation. A second key finding is that the adoption of new manufacturing technologies has a positive impact on post-BS profitability.

The restriction of the dataset to firms for which information on post- and pre-BS financial performance was available has led to a small sample size. Availability of longer time series of profitability data will allow estimating long-term impact, especially for innovation.

The study provides first evidence on the impact of BS on financial performance and throws light on the relevance of innovation as a lever supporting manufacturing relocation to high-cost countries.

The study advances empirical research on BS by offering evidence of its impact on profitability and by linking it to previous research on BS drivers. Further, the study throws light on the role of different drivers as “success factors” of BS and on how they interact with innovation efforts. The study also offers insights to business leaders who are evaluating the potential benefits on company profitability of a return to a high cost-environment and provides useful indications on the conditions under which BS pays off.

The purpose of this paper is to report on how foresight methods are being used to address a “wicked problem” for the global furniture industry: “What are we going to do in the furniture industry in high cost countries (HCC) to maintain our future competitiveness with respect to the competition coming from low cost countries?”

This study explores one sectorial initiative, CEFFOR® (Furniture Foresight Centre, headquarters in Valencia, Spain), that attempts to mitigate the negative impact of globalisation on the competitiveness of the furniture industry in HCCs, by creating a vision of a preferable future through the use of a set of qualitative foresight tools (structural analysis, morphological analysis/field anomaly relaxation, and cross impact analysis) involving a worldwide expert panel.

This paper examines the set‐up phase of the CEFFOR initiative, and describes the main elements of the morphological space developed to profile possible future configurations of the global furniture industry. Future papers will report on further model development and the subsequent take‐up of this work.

The approach used could be adapted to a variety of other industrial sectors. While this study examines a traditional industrial sector, there is no conceptual limitation on its use in other sectors, although such adaptation should clearly remain alert to the unique aspects of any industry.

The novelty of this initiative is the application of a normative foresight approach in a traditional industrial sector in order to generate a shared vision of a sustainable future, and to integrate this foresight approach with an existing business intelligence system.

Global businesses base their sourcing operations and manufacturing decisions primarily on financial principles and metrics. What is often disregarded is the strategic value of domestic locations and contextual tacit knowledge. However, recent empirical work on knowledge flows shows that proximity is crucial. The risk of losing knowledge and important competencies developed through generations within companies and value chains needs to be considered when developing a global sourcing strategy. This chapter sheds light on how global shift-backs, through backshoring are seen to affect organizations that are located in a high-cost country. Based on interviews with managers and key personnel within a specific industry, we explore how companies preserve innovative capabilities when considering closing down (captive) offshore centers or when embarking on a backshoring strategy. The implications derived from the case offers valuable insights into how organizational capabilities could be restored when companies bring manufacturing back.

This chapter extends Panyagometh and Roberts (2008) by taking into account differences in costs of closure among countries and the effects of subordinated debt on moral hazard problems. Our results show that a mandatory subordinated debt policy (MSDP) can be used with contingent purchase and assumption policy to further reduce probability of future bank failure if the high level of uninsured debt can improve the effectiveness of monitoring. While a MSDP might be appropriate for some developed countries with effective informational and supervisory environments and developed financial markets, such as the U.S., extending a MSDP into developing countries is questionable.

An indiscreet strategy of offshoring from low-cost countries (LCCs) can do more harm than good, since invisible supply chain risks may increase hidden costs and subsequently more than offset cost-saving opportunities. Considering the potential impact of these risks on offshoring, the purpose of this paper is to identify risk factors that significantly hinder the efficiency of offshoring and then measure specific risks associated with offshoring in foreign countries.

This paper develops performance metrics for gauging the offshoring attractiveness of potential sourcing countries using data envelopment analysis and then identifies the benchmark sourcing country using the analytic hierarchy process (AHP).

This study reveals that, defying the conventional wisdom, LCCs are not necessarily the most desirable offshoring destinations. This study also discovers that LCCs tend to be less business friendly, less logistically efficient, and riskier to source than their high-income country counterparts.

This paper is one of the first to introduce the concept of wealth creation efficiency for an offshoring decision and consider a host of key determinants such as wealth creation efficiency, logistics efficiency, business friendliness, and various supply chain risks for selecting the most desirable offshoring destination.