Motivations of Manufacturing Back-reshoring: An Interpretative Framework

Purpose – The purpose of this paper is to present a framework for the analysis of reshoring. The framework is then applied to analyze motivations for reshoring, as they emerge from extant literature and from new evidence collected. Design/methodology/approach – The authors start by formulating a literature-grounded definition of reshoring and reviewing some key theoretical approaches for international manufacturing location. In light of these theories, the authors then propose an interpretative framework for the analysis of reshoring motivations. Finally, the authors provide new evidence on this phenomenon, by presenting the findings of an extensive data collection of reshoring cases built on secondary data. Findings – The authors show that a vast array of single drivers of reshoring can be extracted from extant literature; however, the interpretative framework eventually highlights four main typologies of reshoring motivations, thus allowing for a more sound comprehension of why the phenomenon happens. The empirical investigation proves also useful in comparing the relative importance of these motivations, as it reveals that value-driven and country-specific motivations prevail over efficiency-driven and firm-specific ones, respectively. Research limitations/implications – The study is based on the analyses of secondary data extracted from newspapers and magazine sources. Some motivations (and especially those that configure a “correction of a previous erroneous decision”) could have been underestimated. In addition, certain industries (e.g. clothing and footwear), certain countries (USA and China), and certain firms (large companies and MNCs) could have more visibility to the media. Another possible limitation is due to the fact that the classification work inherently implied some discretion and individual judgment. The authors however spent considerable efforts in cross-validating the assessments through extensive discussion within the research team. Originality/value – This is the first paper that summarizes the motivations of the rising reshoring phenomenon and interprets them based on an original theory-derived classification framework.