Journal Article10.1111/JSCM.12019
Offshoring and Reshoring: An Update on the Manufacturing Location Decision
468
TL;DR: In this paper, the authors apply the location aspect of internalization theory to provide an understanding of what factors affect organizations' perceptions of the attractiveness of various regions as locations for owned manufacturing facilities.
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Abstract: This research uses data from a survey to explore the factors that affect organizations' manufacturing location decisions. Manufacturing location, more specifically the possibility of firms' nearshoring or reshoring, has received a great deal of recent attention, especially in the United States. This paper applies the location aspect of internalization theory to provide an understanding of what factors affect organizations' perceptions of the attractiveness of various regions as locations for owned manufacturing facilities. An exploratory factor analysis is used to develop factors that drive manufacturing location decisions. Multiple regression analysis is used to test the relationship between the drivers of manufacturing location decisions and movement of manufacturing into or out of a region, and overall perceived risk of a region. Findings indicate that various drivers have differential effects across regions. For example, while North America is viewed favorably for its trade policies over the next 3 years, the trade policies are also viewed as an increasing source of risk, possibly reflecting bipartisan conflicts. Three theoretical propositions are developed to advance the understanding of the current state of manufacturing location decisions from an internalization perspective. It appears that organizations are beginning to look at their manufacturing location decisions through a broader lens, giving more weight to supply chain issues as well as strategic factors.
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Citations
The relevance of Industry 4.0 and its relationship with moving manufacturing out, back and staying at home
TL;DR: The results of the analyses reveal that the identified drivers and barriers for Industry 4.0 have a positive impact on the perceived relevance of Industry 3.0 among companies and on companies that have remained domestic.
111
Institutional and strategic operations perspectives on manufacturing reshoring
Jagjit Singh Srai,Camille Ané +1 more
TL;DR: This paper examined manufacturing reshoring from institutional, strategic and operations management perspectives, and found that institutional factors can be significant in combination with the more traditional drivers of location decision considered in strategic and operation management.
108
Reshoring and Industry 4.0: How Often Do They Go Together?
TL;DR: In this paper, the authors investigated the linkages between the reshoring of manufacturing to high cost countries and the adoption of technologies labeled Industry 4.0, using a large database of reshoring initiatives to either the U.S. or Europe.
100
Repatriation or Reshoring of Manufacturing to the U.S. and UK: Dynamics and Global Production Networks or from Here to There and Back Again
TL;DR: In this article, the authors explored the restructuring of global production with a focus on the reshoring or repatriation of manufacturing production to the U.S. and UK, and identified the drivers behind reshoring as the first stage toward developing a dynamic conceptual framework for understanding the global organization of production.
Backshoring of production activities in European manufacturing
TL;DR: The most frequent reason for backshoring is poor quality of the goods produced at foreign locations, followed by the loss of flexibility and too high transport costs as mentioned in this paper, which is not an important driver of a manufacturing renaissance in Europe.
92
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