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Article
Publication date: 17 May 2018

Gabriella Engström, Kristina Sollander, Per Hilletofth and David Eriksson

The purpose of this study is to explore reshoring drivers and barriers from a Swedish manufacturing perspective.

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Abstract

Purpose

The purpose of this study is to explore reshoring drivers and barriers from a Swedish manufacturing perspective.

Design/methodology/approach

This paper is a case study, including four Swedish manufacturing companies, with focus on drivers and barriers from the context of the Swedish manufacturing industry. A literature review of previously established drivers and barriers is used to map out the empirical findings and thereby identify potential gaps between the current body of literature and drivers and barriers from a Swedish manufacturing context.

Findings

The findings of the study suggest that quality issues continue to be one of the strongest reshoring drivers. Except for product quality, quality is also connected to host country’s infrastructure, communication and service. The supply chain perspective is a source of several drivers and is identified as a perspective often overlooked in offshoring decisions. Barriers related to firm specifics were more elaborately discussed by the companies, especially concerning calculation of location decision and the need to invest in resources, which allows for a higher level of capacity at the home country facility.

Research limitations/implications

The study develops a structured table of reshoring drivers and barriers which can serve as a base for future research. Future research on the calculation of location decisions is deemed as a crucial step to further understand reshoring and aid companies in the decision-making process.

Practical implications

The drivers and barriers identified in the study can give practitioners insight into reshoring from the perspective of the Swedish manufacturing industry and thus aid in future manufacturing location decisions. The table of drivers and barriers can also be important to understand how Sweden can strengthen its competitive advantage and motivate more companies to reshore manufacturing.

Originality/value

This is one of only few papers from the Nordic countries and also one of few case studies examining reshoring in manufacturing companies.

Details

Journal of Global Operations and Strategic Sourcing, vol. 11 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 1 August 1997

Bert Meijboom and Bart Vos

Questions on configuration and co‐ordination are seldom integrated in research on international manufacturing and location decisions. Suggests a way in which these two aspects…

3478

Abstract

Questions on configuration and co‐ordination are seldom integrated in research on international manufacturing and location decisions. Suggests a way in which these two aspects can be linked by combining concepts from international business and manufacturing strategy. Elaborates the practical relevance of this integration in the experiences of Dutch investors locating plants in Thailand. Simultaneous attention to configuration and co‐ordination enhances the understanding of the functioning of foreign plants in international networks and yields some important implications for managers responsible for international location issues.

Details

International Journal of Operations & Production Management, vol. 17 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 19 February 2018

Paolo Barbieri, Francesco Ciabuschi, Luciano Fratocchi and Matteo Vignoli

The aim of this paper is to analyze and classify research that has been conducted on manufacturing reshoring, i.e. the decision to bring back to the home country production…

4670

Abstract

Purpose

The aim of this paper is to analyze and classify research that has been conducted on manufacturing reshoring, i.e. the decision to bring back to the home country production activities earlier offshored, independently of the governance mode (insourcing vs outsourcing). Consequently, the paper also aims at providing avenues for future research and to highlight the distinct value of studying manufacturing reshoring either per se or in combination with other constructs of the international business tradition.

Design/methodology/approach

A set of 57 carefully selected articles on manufacturing reshoring published in international journals or books indexed on Scopus in the past 10 years was systematically analyzed based on the “5Ws and 1H” (who-what-where-when-why and how) set of questions.

Findings

The authors’ work shows a certain convergence among authors regarding what reshoring is and what its key features and motivations are. In contrast, other related aspects, such as the decision-making and implementation processes, are comparatively less understood.

Research limitations/implications

As manufacturing reshoring is a “recent” topic, for some of its aspects, only exploratory research is available to date, limiting the authors’ possibility to either characterize it in a more exhaustive way or highlight well-established patterns.

Practical implications

The paper demonstrates that studying reshoring will indeed contribute to expanding our understanding of internationalization processes and strategies in general and of production internationalization specifically. While past studies have argued that the learning derived from international experience would permit firms to overcome their unfamiliarity with new business environments, reshoring might show that this outcome is not necessarily certain. Rather, firms might not be able to overcome obstacles because of internationalization or they might realize that attempting to do so is not desirable, e.g. because of excessive risk or changes in the firm’s strategic priorities.

Social implications

From a societal point of view, the present research underlines that reshoring can be part of that re-industrialization policy that many Western countries include in their economic agenda – yet, its impact on employment should not be overestimated, as often relocation is only in regard to some product lines. At the same time, there might be an intimate relationship between reshoring and the various forms of technological innovations applied to manufacturing – which has become popularly labeled as “Industry 4.0”.

Originality/value

Literature reviews proposed until now usually paid almost exclusive attention to motivations driving this phenomenon. This paper offers a broader and more comprehensive examination of the extant knowledge of manufacturing reshoring and identifies the main unresolved issues and knowledge gaps, which future research should investigate.

Details

Journal of Global Operations and Strategic Sourcing, vol. 11 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 1 June 1987

William C. Copacino and Donald B. Rosenfield

Logistics has been receiving increased attention in management literature in the past few years. In particular, logistics has been recognised not only as a group of important…

Abstract

Logistics has been receiving increased attention in management literature in the past few years. In particular, logistics has been recognised not only as a group of important functions, but as functions that have important strategic impacts as well. Logistics, as demonstrated by many corporations, can either gain or lose leverage in the marketplace, and more firms are recognising its importance.

Details

International Journal of Physical Distribution & Materials Management, vol. 17 no. 6
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 11 March 2014

Kevin R. Caskey

The paper aims to examine the location of manufacturing for the major ski brands. The motivation is to explain, while there are no major manufacturers in the USA, the major…

Abstract

Purpose

The paper aims to examine the location of manufacturing for the major ski brands. The motivation is to explain, while there are no major manufacturers in the USA, the major European manufactures do produce locally even though their labor costs are even higher than those in the USA.

Design/methodology/approach

The paper first describes mid-volume, mid-complexity manufacturing. It then describes the ski industry and ski manufacturing. It then proposes several factors that could drive the choice of ski manufacturing location. It then reports interviews with several top managers at major manufacturers and suppliers.

Findings

The findings show that development time and innovation are major drivers in the European market. The desire to lead the market with innovative products precludes the use of manufacturing in Asia, where production and delivery times would be longer.

Practical implications

The findings give an example of the ability of manufacturing to remain in higher labor cost countries if development speed and innovation are significant market drivers.

Social implications

The health of manufacturing in Western Europe and North America is currently of significant political interest. Companies and government entities may consider what actions they can take to encourage innovation-driven markets.

Originality/value

The paper provides an explanation for a significant portion of the manufacturing of a mid-volume and complexity product remaining in higher labor cost countries. As innovation and development speed are found to be major drivers, this can inform manufacturers in other segments where the products and market share characteristics with those found in higher-end downhill skis.

Details

Competitiveness Review, vol. 24 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Book part
Publication date: 21 October 2019

Marco Bettiol, Maria Chiarvesio, Eleonora Di Maria, Cristina Di Stefano and Luciano Fratocchi

Manufacturing offshoring has received substantial attention within international business studies that have explored where activities are located and how they are governed…

Abstract

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.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Keywords

Article
Publication date: 14 December 2020

Laura Purvis, Andrew Lahy, Robert Mason and Mike Wilson

The aim of the paper is to explore the changing role of a logistics service providers (LSPs) to better support their supply chain (SC) partners on their journey of advancing their…

Abstract

Purpose

The aim of the paper is to explore the changing role of a logistics service providers (LSPs) to better support their supply chain (SC) partners on their journey of advancing their product-service systems through distributing manufacturing around the world. The purpose of this paper is to investigate a novel route towards service growth followed by the LSP by integrating upstream into the value chain and the resultant consequences in the configuration of the servitisation strategy, SC structure and allocation of roles.

Design/methodology/approach

A longitudinal exploratory case study design is followed. The case company is one of the world’s largest LSPs.

Findings

The study highlights how companies can transition towards the development of service solutions when not following a uni-directional, downstream pattern of integration in the value chain. The findings challenge the established model of servitisation as a forward uni-directional process across the continuum from goods to a service-focussed logic. They illustrate how companies can also move in a reversed direction, move possible back-and-forth or extend and restrict their position along the servitisation continuum.

Originality/value

The study reveals that service transition involves a deliberate developmental process to build capabilities as firms shift the focus of their product-service offering. It provides novel empirical evidence of how the service growth journey can manifest itself in practice. With insights into the benefits and challenges of distributed manufacturing, it also highlights some of the opportunities available to LSPs to expand their product-service offerings and some of the potential threats.

Details

Supply Chain Management: An International Journal, vol. 26 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Book part
Publication date: 14 October 2015

Luciano Fratocchi, Alessandro Ancarani, Paolo Barbieri, Carmela Di Mauro, Guido Nassimbeni, Marco Sartor, Matteo Vignoli and Andrea Zanoni

The first aim of the chapter is to offer a characterization of back-reshoring as a possible step of the firm’s nonlinear internationalization process. The second aim is to review…

Abstract

Purpose

The first aim of the chapter is to offer a characterization of back-reshoring as a possible step of the firm’s nonlinear internationalization process. The second aim is to review the empirical literature on back-reshoring and to complement it with the findings of an extensive data collection.

Methodology/approach

In this chapter we adopted an explorative approach building on both theoretical and empirical literature from the fields of international business and international operations Management. We also collected secondary data on back-reshoring decisions in order to define the magnitude of the investigated phenomenon and to offer a primary characterization.

Findings

Our findings confirm that, though it cannot be considered a generalized trend, back-reshoring is a very topical issue for international business scholars. It represents an autonomous phenomenon consistent with the idea of nonlinear internationalization process.

Research limitations/implications

The chapter is based on cross-sectional data. Longitudinal research is required in order to address the proposed research questions and help understanding “how much” and what kind of manufacturing will be housed in western countries in the near future.

Originality/value

This is the first attempt to conceptualize back-reshoring as a possible step of the firms’ internationalization process. It is also the first chapter that summarizes and discusses the literature and empirical evidence on back-reshoring emerging from a wide range of countries.

Details

The Future Of Global Organizing
Type: Book
ISBN: 978-1-78560-422-5

Keywords

Article
Publication date: 2 March 2015

Yang Cheng, Sami Farooq and John Johansen

– The purpose of this paper is to examine, and present a comprehensive review of, the existing literature on the international manufacturing network (IMN).

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Abstract

Purpose

The purpose of this paper is to examine, and present a comprehensive review of, the existing literature on the international manufacturing network (IMN).

Design/methodology/approach

The original data set used for reviewing the IMN literature consisted of 107 articles selected from 21 journals: more specifically, 40 articles are concerned with plant-level analysis, and 67 articles are related to IMN-level analysis. The literature is simultaneously reviewed by two researchers. The relevance and contribution of each reviewed paper is discussed and mutually agreed upon.

Findings

The paper highlights the different concepts related to IMN and traces the evolution of IMN-related research. Based on two levels of analysis (i.e. plant and network), this paper further reviews and discusses the IMN-specific literature in detail to determine the number of IMN articles published across the journals, the dominant methodologies employed, and the research focus reflected in IMN studies. A research trajectory is finally developed to provide an integrated and intuitional view on the development of IMN research.

Originality/value

This is the first effort that has been made towards thoroughly investigating the existing literature on IMN, aiming to trace different concepts related to IMN from a historical perspective, to review and discuss the IMN-specific literature in detail, to provide an overview of the evolution trajectory of different existing IMN research themes, and to propose future research directions. Keeping in mind the growing importance of IMN for practitioners as well as the academic community, this study provides a timely overview of existing and emerging IMN research themes.

Details

International Journal of Operations & Production Management, vol. 35 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 3 October 2016

Antônio Márcio Tavares Thomé and Rui Sousa

The purpose of this paper is to propose that the effectiveness of organizational design-manufacturing integration (ODMI) practices is contingent upon the degree of complexity of…

1453

Abstract

Purpose

The purpose of this paper is to propose that the effectiveness of organizational design-manufacturing integration (ODMI) practices is contingent upon the degree of complexity of the manufacturing environment. The paper submits that the level of use of ODMI ought to match the level of complexity of the manufacturing environment. The paper puts forward the hypothesis that when a misfit occurs between ODMI and complexity (high use of ODMI practices in low complexity environments or low use of ODMI practices in high complexity environments) manufacturing operational performance declines.

Design/methodology/approach

The paper tests the hypothesis based on a survey database of 725 manufacturers from 21 countries. The measurement model was assessed with confirmatory factor analysis and the hypothesis was tested with linear regression.

Findings

A misfit between the level of ODMI use (job rotation and co-location) and manufacturing complexity (product and process complexity) has a negative effect on manufacturing operational performance dimensions of quality, delivery and flexibility. Post hoc analyses also suggest that firms that operate in different environments in what concerns the rate of change in process technologies suffer differentiated negative impacts of ODMI-complexity misfit.

Research limitations/implications

Future studies could extend this research to other dimensions of design-manufacturing integration, such as technological practices.

Practical implications

Manufacturers with high levels of complexity should invest strongly in ODMI practices. However, manufacturers with low levels of complexity should invest in these practices with caution since the expected payoffs may not outweigh the effort.

Originality/value

The study assesses fit as a simultaneous set of contingency factors, applying profile-deviation analysis to ODMI and operational performance relationships. By focusing on plant-level manufacturing complexity, this study complements existing studies of product development complexity which tend to focus on project-level complexity.

Details

International Journal of Operations & Production Management, vol. 36 no. 10
Type: Research Article
ISSN: 0144-3577

Keywords

11 – 20 of over 44000