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Open Access
Article
Publication date: 14 December 2017

Malin 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…

9307

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.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 4
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 24 August 2021

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…

3137

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.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 9
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 13 February 2018

Stanley Frederick W.T. Lim and Jagjit Singh Srai

The purpose of this paper is to investigate the interplay between configuration dimensions (network structure, network flow, relationship governance, and service architecture) of…

15222

Abstract

Purpose

The purpose of this paper is to investigate the interplay between configuration dimensions (network structure, network flow, relationship governance, and service architecture) of last-mile supply networks (LMSN) and the underlying mechanisms influencing omnichannel performance.

Design/methodology/approach

Based on mixed-method design incorporating a multiple embedded case study, mapping, survey, and archival records, this research involved undertaking in-depth within- and cross-case analyses to examine seven LMSNs, employing a configuration approach.

Findings

The existing literature in the operations management (OM) field was shown to provide limited understanding of LMSNs within the emerging omnichannel context. Case results suggest that particular configurations have intrinsic capabilities, and that these directly influence omnichannel performance. The study further proposes a taxonomy of LMSNs comprising six forms, with two hybrids, supporting the notion of equifinality in configuration theory. Propositions are developed to further explore interdependencies between configurational attributes, refining the relationship between LMSN types, and factors influencing omnichannel performance.

Practical implications

The findings provide retailers with a set of design parameters for the (re)configuration of LMSNs and facilitate performance evaluation using the concept of fit between configurational attributes. The developed model sheds light on the consequential effects when certain configurational attributes are altered, preempting managerial attention. Given the global trend in urbanization, improved LMSN performance would have positive societal impacts in terms of service and resource efficiency.

Originality/value

This is one of the first studies in the OM field to critically analyze LMSNs and their behaviors in omnichannel retailing. Additionally, the paper offers several important avenues for future research.

Details

International Journal of Operations & Production Management, vol. 38 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 23 July 2024

Olga Dziubaniuk, Maria Ivanova-Gongne, Jenni Kaipainen and Monica Nyholm

The transition to a circular economy (CE) is a known concern in the context of the textile industry, in which business actors attempt to facilitate circular activities such as…

Abstract

Purpose

The transition to a circular economy (CE) is a known concern in the context of the textile industry, in which business actors attempt to facilitate circular activities such as textile recycling. However, a lack of established business relationships and networks creates uncertainty for textile circulation. In such business environments, managerial decisions regarding CE may depend not only on normative behaviour but also on heuristics that guide their choices. Since business relationships for textile circularity require interactions between business actors, this study explores how managerial heuristics are shaped in the CE transition within the textile industry and their impact on actors’ interactions within business relationships and networks.

Design/methodology/approach

Empirically, this qualitative study is based on interviews with managers representing companies and organisations engaged in business relationships and networks aimed at a CE transition in the textile industry, as well as on publicly available secondary data.

Findings

The findings indicate that managerial decisions promoting circularity can be influenced by, besides normative information assessment, factors predominant in (1) the business and regulatory environment, (2) managers’ experience and knowledge obtained during interactions within business networks and (3) the internal strategic approaches of business organisations. This study identifies adaptation, experience, interaction and strategy heuristics that may be utilised by managers in making decisions in the context of uncertainty, such as the industrial transition to a CE.

Originality/value

This study expands the knowledge of heuristics applied to managerial decision making in interacting business firms and institutional organisations aiming to facilitate textile recycling and proposes a heuristics toolbox. The study provides an insight into business actors’ interactions, as well as various factors inside and outside the organisations shaping the managerial decisions. By doing this, the study adds to the literature, highlighting the importance of contextualisation and the interrelation between the individual and business environment levels in business-to-business management.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 13 February 2023

Kirstin Scholten, Dirk Pieter van Donk, Damien Power and Stephanie Braeuer

To be able to continuously provide affordable services to consumers, managers of critical infrastructure (CI) maintenance supply networks have to balance investments in resilience…

3136

Abstract

Purpose

To be able to continuously provide affordable services to consumers, managers of critical infrastructure (CI) maintenance supply networks have to balance investments in resilience with costs. At the same time, CI providers need to consider factors that influence resilience such as the geographical spread or the location of the network. This study aims to contextualize supply chain resilience knowledge by exploring how maintenance resource configurations impact resilience and costs in CI supply networks.

Design/methodology/approach

An in-depth longitudinal single case study of a representative CI provider that has centralized its maintenance supply network is used. Data were collected before and after the change to evaluate the effect of the changes on the maintenance supply network.

Findings

This study shows that in this specific CI maintenance context, structural resource choices such as the quantity or location of spare parts and tools, the creation and exploitation of tacit knowledge and staff motivation impact both resilience and costs due to geographical spread, network location and other network properties.

Originality/value

This study extends general supply chain resilience knowledge to a new setting (i.e. CI) and shows how existing insights apply in this context. More specifically, it is shown that even in engineered supply networks there is a need to consider the effect of human agency on resilience as the creation and exploitation of tacit knowledge are of immense importance in managing the network. In addition, the relationship between normal accidents theory and high reliability theory (HRT) is revisited as findings indicate that HRT is also important after a disruption has taken place.

Details

Supply Chain Management: An International Journal, vol. 28 no. 7
Type: Research Article
ISSN: 1359-8546

Keywords

Open Access
Article
Publication date: 30 March 2021

Kate McLoughlin and Joanne Meehan

The purpose of this paper is to examine how, and by whom, institutional logics are determined in the action of sustainable organisation. The authors analyse a supply chain network

4645

Abstract

Purpose

The purpose of this paper is to examine how, and by whom, institutional logics are determined in the action of sustainable organisation. The authors analyse a supply chain network structure to understand how multiple stakeholders' perceptions of sustainability emerge into a dominant logic and diffuse across an organisational field.

Design/methodology/approach

Stakeholder network theory provides novel insights into emerging logics within a chocolate supply chain network. Semi-structured interviews with 35 decision-makers were analysed alongside 269 company documents to capture variations in emergent logics. The network was mapped to include 63 nodes and 366 edges to analyse power structure and mechanisms.

Findings

The socio-economic organising principles of sustainable organisation, their sources of power and their logics are identified. Economic and social logics are revealed, yet the dominance of economic logics creates risks to their coexistence. Logics are largely shaped in pre-competitive activities, and resource fitness to collaborative clusters limits access for non-commercial actors.

Research limitations/implications

Powerful firms use network structures and collaborative and concurrent inter-organisational relationships to define and diffuse their conceptualisation of sustainability and restrict competing logics.

Originality/value

This novel study contributes to sustainable supply chain management (SSCM) through presenting the socio-economic logic as a new conceptual framework to understand the action of sustainable organisation. The identification of sophisticated mechanisms of power and hegemonic control in the network opens new research agendas.

Details

International Journal of Operations & Production Management, vol. 41 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 29 October 2020

Alessio Trentin, Thomas Aichner, Enrico Sandrin and Cipriano Forza

The operational capability of mass customization (MC) allows consumers to obtain products tailored to their idiosyncratic needs. This study aims to provide insights into the…

1939

Abstract

Purpose

The operational capability of mass customization (MC) allows consumers to obtain products tailored to their idiosyncratic needs. This study aims to provide insights into the potential of this capability for countering a product's liability of foreignness – the negative effect of the out-group status of a product's country of origin (COO) on consumers' evaluations of the product.

Design/methodology/approach

Based on the social identity approach, it is hypothesized that this liability is reduced when a consumer product is mass-customized rather than standardized as per a mass-production strategy. This hypothesis is tested using a mixed between- and within-subject experiment.

Findings

When evaluating mass-produced sneakers, native German-speaking (Italian-speaking) South Tyrolean consumers rated the quality of Italian (German) sneakers significantly lower than that of German (Italian) sneakers. However, when the sneakers were mass-customized, this difference in perceived product quality was non-significant for both groups of consumers, supporting the research hypothesis.

Research limitations/implications

Future research could replicate this study in other samples, with other product types, COOs and countries of destination, as well as at different degrees of product customization.

Practical implications

Business-to-consumer firms contemplating the development of their MC capability are made aware that the benefits of this operational capability might go beyond the typical advantages highlighted by the existing literature.

Originality/value

This paper joins the discussion on MC value by offering a theoretical explanation and empirical support for another mechanism through which the operational capability of MC can create value, at least in business-to-consumer industries: by countering a product's possible liability of foreignness and thus increasing perceived product quality in export markets.

Details

International Journal of Operations & Production Management, vol. 40 no. 11
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 2 February 2023

Michele Lo Re, Eleonora Veglianti, Fabrizio Parente, Umberto Monarca and Cosimo Magazzino

This paper explores international trade of the Chinese manufacturing industries through the lenses of network analysis (NA) to visualise the world trade network of the Chinese…

Abstract

Purpose

This paper explores international trade of the Chinese manufacturing industries through the lenses of network analysis (NA) to visualise the world trade network of the Chinese economy, describe its topology and better explain the international organisation of Chinese manufacturing industries.

Design/methodology/approach

The authors built a dataset of 40,550 Chinese companies and their 107,026 subsidiaries in 118 countries from Orbis-BVD and used a NA to investigate the connection between China and other countries. In particular, the authors studied the connections between Chinese companies and their subsidiaries in order to build a network of Chinese industries.

Findings

The authors found that the network of Chinese companies is ramified but not wide and it can be divided into two clusters. Moreover, the relations between China and other peripheral countries are strongly mediated by a few leading locations (e.g. Hong Kong and the USA).

Originality/value

This paper contributes to the literature in several ways. First, the authors provide empirical evidence on the magnitude and ramifications of Chinese enterprises in the world. The existing studies generally focus on applying NA to sectoral insights (Mao and Yang, 2012; Shaikh et al., 2016; Zheng et al., 2016; Wanzenbö ck, 2018; Krichene et al., 2019), whereas in this work the authors take a comprehensive view of the entire Chinese manufacturing system. Second, this paper complements the existing literature identifying the difference between cluster levels in Chinese manufacturing (Wu and Jiang, 2011) by proposing a cluster centralisation method to analyse the international network of Chinese firms rather than just the national network. Finally, the results also shed light on the international trade relationship between China, Hong Kong and the USA.

Details

Journal of Economic Studies, vol. 50 no. 8
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 28 November 2023

Silvia Massa, Maria Carmela Annosi, Lucia Marchegiani and Antonio Messeni Petruzzelli

This study aims to focus on a key unanswered question about how digitalization and the knowledge processes it enables affect firms’ strategies in the international arena.

6747

Abstract

Purpose

This study aims to focus on a key unanswered question about how digitalization and the knowledge processes it enables affect firms’ strategies in the international arena.

Design/methodology/approach

The authors conduct a systematic literature review of relevant theoretical and empirical studies covering over 20 years of research (from 2000 to 2023) and including 73 journal papers.

Findings

This review allows us to highlight a relationship between firms’ international strategies and the knowledge processes enabled by applying digital technologies. Specifically, the authors discuss the characteristics of patterns of knowledge flows and knowledge processes (their origin, the type of knowledge they carry on and their directionality) as determinants for the emergence of diverse international strategies embraced by single firms or by populations of firms within ecosystems, networks, global value chains or alliances.

Originality/value

Despite digital technologies constituting important antecedents and critical factors for the internationalization process, and international businesses in general, and operating cross borders implies the enactment of highly knowledge-intensive processes, current literature still fails to provide a holistic picture of how firms strategically use what they know and seek out what they do not know in the international environment, using the affordances of digital technologies.

Details

Journal of Knowledge Management, vol. 27 no. 11
Type: Research Article
ISSN: 1367-3270

Keywords

Open Access
Article
Publication date: 10 March 2023

Huda Khan, Ahmad Arslan, Lauri Haapanen, Peter Rodgers and Shlomo Yedidia Tarba

Applying both the dynamic capability and configuration theoretical perspectives, the paper showcases the role of network configuration and dynamics of hybrid offerings in both…

1188

Abstract

Purpose

Applying both the dynamic capability and configuration theoretical perspectives, the paper showcases the role of network configuration and dynamics of hybrid offerings in both developed and emerging markets by high-tech firms.

Design/methodology/approach

The current paper uses an exploratory qualitative research methodology based on in-depth case studies of three Finnish high-tech firms operating in the medical technology industry globally.

Findings

The findings from the study showed that dynamic capabilities such as sensing and customer engagement along with internal coordination and adaptation capabilities are critical to the success of hybrid market offerings. Moreover, dynamic capabilities were found to be influential in those emerging and advanced international markets where case firms were less familiar with market dynamics. Moreover, the configuration of these capabilities within functional units and coordination of marketing and R&D activities can be effective for creating hybrid offerings in international markets. Ultimately, this was found to be the case even though target market selection for hybrid offerings was influenced by the level of convergence and fragmentation of the market.

Originality/value

Applying the configuration theory, this is one of the first studies to specifically analyze the differences in organizational network configuration changes in relation to hybrid market offerings in both developed economies and emerging economies. The findings contribute to hybrid market offering literature by pointing out that not only internal capabilities are important for enacting hybrid offerings, but the roles of ecosystems and knowledge centers are also extremely important to develop hybrid offerings. This paper also highlights the criticality of under-studied dynamic capabilities such as market sensing and customer engagement in the context of hybrid offerings in international markets. This showcases the wider role of ecosystems in enabling technology firms to develop hybrid offerings.

Details

International Marketing Review, vol. 40 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

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