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Purpose – The aim of this paper is to clearly mark the clusters in the related literature using bibliometric analysis and draw useful implications for the academic research purposes especially in the stream of Supply Chain Management (SCM). Design/methodology/approach – By employing rigorous selection criteria, sample articles were selected for synthesizing and conducting a bibliometric analysis. This paper tries to identify the significance of the concept of reshoring with the aspect of SCM, operations, logistics etc. Starting from sample selection, systematic selection criteria has been used to generate the database, using Scopus. The sample size was 184. Using VOSViewer, statistical and graphical representations were generated for clusters in the literature that will be useful for judging the trends of research under shoring concepts. Findings – Findings show that unclear difference compared to other supply chain concepts obstructs further theory development within reshoring concepts. To address this challenge, the review categorizes themes and defines boundaries. Based on the analysis findings, this paper advocates for additional research in areas that are crucial but have received limited or no attention. Specifically, there is a need for action research on motivations, governance modes, and location selection concerning reshoring decisions. Research limitations/implications – This review has a few limitations. The absence of publications in other language, than English, may result in a significant loss of knowledge. This research paper cited a few relevant publications in the form of conference papers, industry reports, books, and book chapters. Nonetheless, they were excluded from the organized bibliometric audit. To further advance the knowledge in this field, exploratory longitudinal case studies will bring to focus the changes on manufacturing strategies using the shoring and reshoring stages. Practical implications – A current example of this is a French company named Stil (Terzian, 2020) which brought its glass thermometer production back to its home after the unexpected closure of its suppliers from China. Another Italian firm has restarted production of disposal bio-degradable face masks after 15 years to compete with low-cost alternatives from China (Greco, 2020). Reshoring concepts are now under consideration of organizations including Boeing, Bosch, Phillips and more. Originality/value – To the best of our knowledge, this represents one of the earliest efforts to conceptualize and define reshoring concepts, aiming to distinguish them from one another appropriately. To accomplish this, the earlier demarcated clusters precede this section’s classification of reshoring concepts illustrated in Table 8. Based on the synthesis of definitions and thematic clusters above, we have concluded the literature review in this emerging field. It is intended to contribute to theory development and practitioner support in reshoring decisions by clarifying the dimensions.

In times of prolonged economic doldrums across the globe, multinational firms (MNFs) offshoring blunders can undermine their competitiveness in the marketplace. To help the MNF formulate a more resilient offshoring strategy and identify the most desirable offshoring destination, this article aims to identify dynamic risk factors that significantly hinder the efficiency of offshoring and then measure specific offshoring risks over time using two different versions of data envelopment analysis (DEA) models and Malmquist productivity index (MPI). After assessing the degree of risk resiliency of the offshoring host countries over extended periods and then conducting Tobit regression analysis to identify key factors that significantly influence offshoring risks, we found that the host country's logistics efficiency (i.e., logistics performance index [LPI]) and domestic market size were critical indicators of offshoring success in that country. Since low‐cost sourcing countries (LCCs) tend to have relatively low LPIs and smaller domestic market sizes, they are not attractive offshoring destinations. This finding defies conventional wisdom. This article is one of the first longitudinal studies to assess the comprehensive risk resilience of 87 different offshoring destinations (countries) during multiple periods (6‐year span). [ABSTRACT FROM AUTHOR]

The purposes of the research are to establish the theoretical foundations and to conduct a thorough analysis related to the creation of special economic zones (hereinafter referred to as SEZ) and identification of their key features. To achieve these purposes, theoretical aspects of SEZ have been considered in relation to Russia. As a result, the main types and distinctive characteristics of SEZ have been found, which are one of the instruments of economic development that contributes to rapid economic growth due to tax, customs and currency privileges. The article examines the process of expanding the networks of SEZ. They can act as a catalyst for changeable development. The research also studies their further formation prospects. The main results of the research lie in new knowledge about zones of special economic type, achieved by analysing the principles of creating SEZ and by collecting information about them as zones which contribute to the improvement of foreign economic relations and development of trade relations in general. The next area of research on this topic is the subsequent introduction of flexible ways to prepare the latest branches of development in the field of studying SEZ that are currently of rather great importance.

Offshoring location selection is a crucial decision for firms in terms of competitiveness, flexibility, productivity, and profitability. Determining an efficient and appropriate location for offshoring has been a substantial multicriteria decision-making (MCDM) problem. Considering that the outcome of an MCDM method alone can be misleading, a novel hybrid approach is presented in this study. Thus, five MCDM methods are utilized to solve the problem, and the results of four MCDM methods are integrated to assure an optimal offshoring location. A FuzzyAHP (analytical hierarchy process) integrated with the technique for order preference by similarity to ideal solution (TOPSIS), additive ratio assessment (ARAS), elimination et choix traduisant la realité (ELECTRE), and weighted sum method (WSM) methodology is proposed for the appraisal and selection of the optimal offshoring location. In this context, fifteen alternative locations are determined based on the attractiveness of the locations in terms of offshoring. Fuzzy-AHP is implemented to analyze the problem's structure and find the weights of the quantitative and qualitative criteria. Consistency tests are implemented to assess the quality of inputs of an expert. Then, TOPSIS, WSM, ARAS, and ELECTRE are used to evaluate and rank the candidate locations and present a comparative analysis. By considering fifteen countries and using real data, offshoring location selection is conducted through the proposed methodology. Moreover, sensitivity analysis is made to diminish the subjectivity and assess the robustness of the techniques. The results demonstrated that giving more weights to the labor characteristics and proximity to market criteria might improve the quality of the best offshoring country index. [ABSTRACT FROM AUTHOR]

We present a two-country model (North and South) that describes the phenomenon of offshoring and reshoring. The model is a continuous time-controlled Markov chain with binary states. The main trade-off involves production costs and transaction costs between one country and another. In the first part of this paper, we identify the key parameters of the model: the difference in unit production costs between the two countries considered, the marginal cost of transitioning between countries, and the incentive paid by the North country to all companies that have not relocated at the end of the planning interval. The final goal of our paper is to understand how national tax incentives can influence this process. [ABSTRACT FROM AUTHOR]

Highly skilled workers are not only a crucial and relatively scarce input into firms' productive and innovative processes, but are also a critical resource determining competitive advantage. An increasingly high proportion of these workers in the United States were born abroad and permitted to work on skilled worker visas. How do multinational firms respond when artificial constraints, namely, policies restricting skilled immigration, are placed on their ability to hire scarce human capital? This paper combines visa microdata and comprehensive data on U.S. multinational firm activity to demonstrate that firms respond to restrictions on H-1B immigration by increasing foreign affiliate employment at the intensive and extensive margins, particularly in China, India, and Canada. The most impacted jobs were R&D-intensive ones, but there is some evidence that non-R&D employment was also affected. The paper highlights a means by which firms can circumvent constraining policies and mitigate country-level risk, and it also suggests that, for the average multinational company (MNC), this means is imperfect; for every visa rejection, they hire 0.4 employees abroad. The most globalized MNCs are the most likely to respond to these restrictions by offshoring, highlighting that firm capabilities—in the form of prior internationalization—shape the decision and ability to offshore in response to skilled immigration restrictions; indeed, these firms hire 0.9 employees abroad for every visa rejection. More broadly, the paper provides evidence of a push factor for internationalizing knowledge activity: artificial constraints on resources result in firms circumventing restrictive policies in ways that may not be anticipated by policy makers. This paper was accepted by Alfonso Gambardella, business strategy. Funding: This work was supported by the Mack Institute for Innovation Management. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4715. [ABSTRACT FROM AUTHOR]

We extend the small country trade model with firm heterogeneity (Demidova and Rodriguez-Clare, Journal of International Economics, 90, 2013 and 266) to incorporate offshoring (along with final goods trade). We derive the firm-level employment implications of output and input trade and trade costs and test them using Korean firm-level data for the period 2006–2016. A key theoretical result is that the impact of a change in offshoring cost on employment depends crucially on the net substitutability between inputs where net substitutability is the difference between the elasticities of input substitution and output substitution. Empirically, we find that a decrease in the input trade cost reduces employment and the impact is stronger, the greater the net substitutability between inputs. Our 2SLS results with firm-level imports (in place of trade costs) are consistent with our results with trade costs.

Abstract Non-technical summary Given increasing global political, security and economic challenges, politicians in the European Union (EU) are seeking to reduce the EU's dependence on imports, including feed for farmed livestock. While insect farming has been suggested as an advantageous source of livestock feed is the insect farming industry, the sector has not met optimistic expectations. In particular, labor and electricity costs are driving insect companies offshore, including to Asia and the United States. This paper explores ways that the EU could solve this problem, the most promising of which is to expand the EU's production of maize and soy. Technical summary In the context of the Russian invasion of Ukraine and increasing global destabilization, policy makers within the European Union have expressed the need to reduce the bloc's dependence on imported agricultural products such as livestock feed. One industry that has been promoted as an advantageous source of livestock feed is insect agriculture. However, the insect industry's growth has not kept pace with optimistic expectations, and high labor and electricity costs in Europe appear to be driving major insect companies to expand production offshore. One solution may involve supporting the automation of insect farming, though automation may have harmful social consequences by reducing employment and exacerbating inequality. A more promising solution could involve bringing additional land under cultivation to expand domestic production of maize and soy, and the most up-to-date estimates suggest that doing so may even offer environmental benefits over insect production. Social media summary Insect farming has been offered as a solution to EU food security, but labor and power costs complicate the picture.

Law enforcement and public health agencies operate in the context of their national government policies and resources. But improving and protecting health and community safety are made more difficult by four dark geopolitical forces which have been accelerating in recent years. Neoliberalism is driving governments to pursue low tax, low regulation small-state policies and aiding the expansion of uncontrolled globalization and colonialization of health-damaging manufacturing and services by multinational companies. The "Sovereign individuals," first described in 1997, are the super-rich who have mastery over information technologies to avoid taxes and hide their wealth from governments. The vast offshoring of wealth has led to increasing inequalities in wealth and health, between rich and poor, further adding to civil distrust and unrest. Loss of revenues prevents government funding of health, welfare, and public protection whilst creating greater need for it. To explain the increasing poverty and harshness of life for the masses, there has been a rebirth and rise of populism. This has accelerated political corruption, created culture wars, fomented distrust of others, and added to global political instability. The information revolution has influenced all of these: it has created its own dark geopolitical force through the explosion of social media and industrial disinformation undermining individual critical thinking and democratic processes. Law enforcement and public health agencies face the consequences of these dark forces in their daily work, but they also need to understand more and develop more effective partnership responses to counter the worst excesses of the new geopolitical realities. [ABSTRACT FROM AUTHOR]

Problem definition: A critical decision made by firms is whether to adopt a responsive supply chain (prioritizing speed) or an efficient supply chain (prioritizing cost). We consider the environmental implications of this choice, distinguishing between responsiveness achieved via three pathways: responsive offshore supply chains increase speed by using expedited production and distribution methods; responsive nearshore supply chains increase speed by reducing the physical distance between source and destination for all production; and hybrid nearshore supply chains produce in multiple locations simultaneously, increasing speed by reducing distance on some portion of production. Methodology/results: Using a model wherein responsiveness increases fixed and marginal costs, decreases leadtimes, and changes the per-unit environmental impact of production and distribution, we identify several results. First, all types of responsiveness can decrease environmental impact relative to an efficient supply chain, showing any form of responsiveness has potential to improve sustainability. Second, despite this, all types of responsiveness can also increase environmental impact relative to an efficient supply chain, particularly if demand variability is high. This is precisely when responsiveness is most profitable to the firm, indicating a tension between firm and environmental preferences. Third, a win-win outcome in which responsiveness both maximizes firm profit and minimizes environmental impact is most likely to occur when demand variability is high and unsatisfied customers substitute with a product that generates high environmental impact. Fourth, the firm may have incentive to choose a supply chain that does not minimize (and may maximize) environmental impact, especially at low-to-moderate demand variability. Managerial implications: While responsive supply chains can improve sustainability, they also generate the potential for misalignment of profit and environmental performance. We discuss the implications of this for firms and for policymakers seeking to encourage firms to use supply chains that generate the least environmental impact. Supplemental Material: The e-companion is available at https://doi.org/10.1287/msom.2022.0152. [ABSTRACT FROM AUTHOR]

Reflections on the factors that influence the delocalization of Italian companies to other countries, arising from a rapidly changing world economy, offer invaluable insight into companies facing similar tough choices. Usually, this decision is attributed to economic, fiscal, and institutional factors. This article examines the process of delocalization of Italian enterprises and empirically verifies the main factors which influence the delocalization of Italian enterprises to East European Countries. The results suggest that "labor market regulation", "business regulation", and "size of government" or better said, the labor cost the host country, is the main incentive of Italian enterprises to delocalize their production. Empirical results also show that institutional factors such as "rule of law", "control of corruption", "political stability", and "broadband infrastructure" have a positive and significant correlation with the delocalization of Italian enterprises to the East European Countries. The results in this case suggest that Italian companies are looking for an environment in which the state knows how to enforce their own rules, but also a state that is somewhat "corruptible". [ABSTRACT FROM AUTHOR]

We present a two-country model (North and South) that describes the phenomenon of offshoring and reshoring. The model is a continuous time-controlled Markov chain with binary states. The main trade-off involves production costs and transaction costs between one country and another. In the first part of this paper, we identify the key parameters of the model: the difference in unit production costs between the two countries considered, the marginal cost of transitioning between countries, and the incentive paid by the North country to all companies that have not relocated at the end of the planning interval. The final goal of our paper is to understand how national tax incentives can influence this process.

Law enforcement and public health agencies operate in the context of their national government policies and resources. But improving and protecting health and community safety are made more difficult by four dark geopolitical forces which have been accelerating in recent years. Neoliberalism is driving governments to pursue low tax, low regulation small-state policies and aiding the expansion of uncontrolled globalization and colonialization of health-damaging manufacturing and services by multinational companies. The “Sovereign individuals,” first described in 1997, are the super-rich who have mastery over information technologies to avoid taxes and hide their wealth from governments. The vast offshoring of wealth has led to increasing inequalities in wealth and health, between rich and poor, further adding to civil distrust and unrest. Loss of revenues prevents government funding of health, welfare, and public protection whilst creating greater need for it. To explain the increasing poverty and harshness of life for the masses, there has been a rebirth and rise of populism. This has accelerated political corruption, created culture wars, fomented distrust of others, and added to global political instability. The information revolution has influenced all of these: it has created its own dark geopolitical force through the explosion of social media and industrial disinformation undermining individual critical thinking and democratic processes. Law enforcement and public health agencies face the consequences of these dark forces in their daily work, but they also need to understand more and develop more effective partnership responses to counter the worst excesses of the new geopolitical realities.

Background: With global changes in markets and government regulations, most organizations, which previously opted for offshore production, began to return to their country of origin—a process called reshoring. The new strategies for locating units and business models, which involve decisions to outsource production and organizational capacity, now face a new context of Industry 4.0, a market for technologies with the potential to transform entire supply chains in addition to directly influencing organizational aspects with innovative solutions and resource efficiency. Methods: This systematic literature review (SLR) found 43 articles relating to reshoring and Industry 4.0; there was an increase in publications in the last few years. We divided the studies according to 9 aspects: market uncertainties and labor supply; support for managerial decision making; competitive priorities analysis (costs and efficiency); business strategies; information knowledge and collaboration management; political, social and economic changes; risk security and privacy management; supply chain management; and investment market and private equity funds. Results: This article presents a content analysis of articles in the field of administration, focusing on location strategies, technology adoption, and organizational changes. The study identifies key aspects such as research quality, publication trends, regional focus, and strategy topics. The findings emphasize the importance of research objectives and problem-solving for managerial decision-making and highlight the need for further exploration in the literature. Conclusions: Reshoring, Industry 4.0, and location strategies are relevant topics for global management. The supply chain plays a role in decision-making for location and technology adoption, suggesting the need for more research in supply chain management. [ABSTRACT FROM AUTHOR]

After decades of outsourcing to low-cost countries, companies are restructuring their production footprint globally. Especially having experienced supply chain disruption caused by the unprecedented Covid-19 pandemic for the past several years, many multinational companies are considering bringing their operations back home (i.e., reshoring). At the same time, the U.S. government proposes using tax penalties to motivate companies to reshore. In this paper, we study how a global supply chain adjusts its offshoring and reshoring production decisions under two different circumstances: (1) under traditional corporate tax regulations; (2) under the proposed tax penalty regulations. We analyze cost variants, tax structures, market access and production risks to identify conditions where global companies decide to bring manufacturing back to their domestic countries. Our results show that multinational companies would be more likely to relocate the production from the main foreign country to an alternative country that enjoys even lower production costs under the proposed tax penalty. As identified by our analysis and as well as numerical simulations, reshoring can only occur in rare situations such as when the production costs in the foreign countries are close to that in the domestic country. Besides potential national tax reform, we also discuss the impact of the Global Minimum Tax Rate proposed by the G7 on global companies' offshoring/reshoring decisions. [ABSTRACT FROM AUTHOR]

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Government authorities and the media regularly show great interest in offshoring due to its role in manufacturing employment’s decline, in particular. However, it remains difficult to quantify company offshoring given that it can be defined in multiple ways. This article updates the literature’s previous research while proposing a new and improved methodological framework for identifying offshoring, based on machine learning methods applied to INSEE’s Chaînes d’activité mondiales (CAM) survey. Our analysis, which covers 1995–2018, shows that the number of offshoring companies has decreased slightly following the global financial crisis of 2009. We show that offshoring is procyclical and describe the characteristics of the offshored jobs and offshoring companies. A causal econometric estimate of the annual average number of jobs offshored indicates offshoring’s continuing macroeconomic influence on the dynamics of French manufacturing employment. [ABSTRACT FROM AUTHOR]

Objective: The purpose of the article is to examine the impact of ground-breaking inventions collectively called the Fourth Industrial Revolution (4IR) or Industry 4.0 on foreign direct investments (FDIs). In particular, the impact of the inventions on offshoring and reshoring (backshoring, nearshoring, insourcing) was analysed in the context of other factors and their potential future course. Research Design & Methods: The article is theoretical and empirical in nature and based on theoretical literature on the subject, secondary sources containing the results of empirical research, and desk research. Predictive analysis and logical reasoning methods played therefore a very important role, since the studied phenomena are in the process of evolution. The structure of the article consists of findings on the origins and the definitions of offshoring and reshoring and their theoretical foundations, an analysis of the motives, barriers and course of these processes follows, and the presentation of the research results and the final conclusions. Findings: The implementation of 4IR inventions has the potential to fundamentally change the geography of FDIs and their importance in the world. It is likely to decrease the significance of labour costs as a factor of production location while increasing the role of human capital and technology. As a result, reshoring phenomena will intensify, and many global value chains will be liquidated or shortened. The ambivalent impact of 4IR on the geography of production will be probable, while the trend towards reshoring and spatial dispersion of the production of complete products in the long term may appear to be stronger. Implications & Recommendations: To a significant degree, Industry 4.0 will probably change the criteria for the implementation of FDIs, their size, and the directions of capital flows. The consequences of this will vary depending on the type of industry and the production carried out within. In particular, the effects will differ when divided between highly developed and developing countries. If the former benefit from the change in business models and strengthen their competitive advantages, the latter may suffer significant losses related to the increase of unemployment and the collapse of their industrialization strategy based on the inflow of FDIs. Therefore, actions by governments and international organizations are necessary to prevent this 'dark' scenario from becoming a reality. Contribution & Value Added: The article presents the theoretical foundations of offshoring and reshoring as well as the analysis and synthesis of their motives and barriers. Their course and recent determinants were characterized. The assessment of the impact of 4IR inventions on offshoring and reshoring and the identification of factors that will affect these two aspects of FDIs positively and negatively in the short, medium, and long term in the future have the greatest importance for the value of the study. Moreover, the study found that the reverse flow of FDIs implies the need to formulate their new paradigm. The former paradigm characterised them in a limited way as a unilateral flow of capital from the country of origin to the host country. The one proposed in the article takes into account also the return movement of capital as an immanent element of FDIs of increasing importance. [ABSTRACT FROM AUTHOR]

By importing goods whose production affects the environment abroad, wealthy countries are ‘offshoring’ a large share of their total environmental footprint of consumption to less affluent societies. We argue that current efforts to mitigate this problem, which focus largely on informational policy instruments for global supply chains, could result in unintended side effects. The reason pertains to a potential tradeoff between a home bias in consumption and the geographic allocation of environmental impacts. We develop a theoretical argument on how consumers may respond when they prefer a domestically produced good but are made aware that this results in more environmental damage at home, compared to importing the same product from abroad. Based on choice experiments in Germany, Japan, and the United States, we observe that information provision can reduce consumer demand for environmentally harmful products, but also find some support for environmental NIMBYism when environmental and provenance information are combined. The key implication of this finding is that policymakers should address potentially unintended side-effects of more stringent informational requirements for global supply chains.

Objective: The purpose of the article is to examine the impact of ground-breaking inventions collectively called the Fourth Industrial Revolution (4IR) or Industry 4.0 on foreign direct investments (FDIs). In particular, the impact of the inventions on offshoring and reshoring (backshoring, nearshoring, insourcing) was analysed in the context of other factors and their potential future course. Research Design & Methods: The article is theoretical and empirical in nature and based on theoretical literature on the subject, secondary sources containing the results of empirical research, and desk research. Predictive analysis and logical reasoning methods played therefore a very important role, since the studied phenomena are in the process of evolution. The structure of the article consists of findings on the origins and the definitions of offshoring and reshoring and their theoretical foundations, an analysis of the motives, barriers and course of these processes follows, and the presentation of the research results and the final conclusions. Findings: The implementation of 4IR inventions has the potential to fundamentally change the geography of FDIs and their importance in the world. It is likely to decrease the significance of labour costs as a factor of production location while increasing the role of human capital and technology. As a result, reshoring phenomena will intensify, and many global value chains will be liquidated or shortened. The ambivalent impact of 4IR on the geography of production will be probable, while the trend towards reshoring and spatial dispersion of the production of complete products in the long term may appear to be stronger. Implications & Recommendations: To a significant degree, Industry 4.0 will probably change the criteria for the implementation of FDIs, their size, and the directions of capital flows. The consequences of this will vary depending on the type of industry and the production carried out within. In particular, the effects will differ when divided between highly developed and developing countries. If the former benefit from the change in business models and strengthen their competitive advantages, the latter may suffer significant losses related to the increase of unemployment and the collapse of their industrialization strategy based on the inflow of FDIs. Therefore, actions by governments and international organizations are necessary to prevent this ‘dark’ scenario from becoming a reality. Contribution & Value Added: The article presents the theoretical foundations of offshoring and reshoring as well as the analysis and synthesis of their motives and barriers. Their course and recent determinants were characterized. The assessment of the impact of 4IR inventions on offshoring and reshoring and the identification of factors that will affect these two aspects of FDIs positively and negatively in the short, medium, and long term in the future have the greatest importance for the value of the study. Moreover, the study found that the reverse flow of FDIs implies the need to formulate their new paradigm. The former paradigm characterised them in a limited way as a unilateral flow of capital from the country of origin to the host country. The one proposed in the article takes into account also the return movement of capital as an immanent element of FDIs of increasing importance.

We propose a novel framework to examine relationships among drivers of economic growth in Southeast Asia, a region poised to become a significant manufacturing destination. However, unbalanced economic growth among countries poses risks to multinational companies considering offshoring decisions. Our two-stage framework uses multi-way cointegration analysis and a vector error correction model (VECM) to investigate critical drivers of economic growth. We apply a QVAR model to evaluate dynamic connectedness and spillover effects of offshoring decisions. Using World Bank data, our results show that Southeast Asian countries are interconnected through complex relationships featuring multi-way cointegration and dynamic connectedness, informing evidence-based policy. • A conceptual framework to identify spillover effects on drivers of economic growth. • A multi-way co-integration, causality, and dynamic connectedness analysis. • A quantile vector autoregressive (QVAR) model to assess dynamic connectedness. • A subset of Southeast Asian countries have spillover effects on each other. • A sensitivity analysis of spillover effects across a sequel of quantiles. [ABSTRACT FROM AUTHOR]

Reflections on the factors that influence the delocalization of Italian companies to other countries, arising from a rapidly changing world economy, offer invaluable insight into companies facing similar tough choices. Usually, this decision is attributed to economic, fiscal, and institutional factors. This article examines the process of delocalization of Italian enterprises and empirically verifies the main factors which influence the delocalization of Italian enterprises to East European Countries. The results suggest that “labor market regulation”, “business regulation”, and “size of government” or better said, the labor cost the host country, is the main incentive of Italian enterprises to delocalize their production. Empirical results also show that institutional factors such as “rule of law”, “control of corruption”, “political stability”, and “broadband infrastructure” have a positive and significant correlation with the delocalization of Italian enterprises to the East European Countries. The results in this case suggest that Italian companies are looking for an environment in which the state knows how to enforce their own rules, but also a state that is somewhat “corruptible”.

The rapid spread of the internet over the last two decades has prompted more and more companies to deploy their work internationally. The offshoring strategy enables organizations to cut down costs, boost shareholder value, acquire a competitive advantage, reduce cycle time, increase workforce flexibility, generate revenue and focus on their core business. The number of worldwide software development projects has increased due to globalization. Global Software Development (GSD) projects are forecast to grow by 20% to 30% in countries like India and China. The outsourcing experts choose one of the suitable models from the available global delivery options to deliver services in the global software paradigm. However, adopting the appropriate model for application maintenance is a complicated process. In addition, the right model is selected based on various influencing factors, type of the project and client requirements. Additionally, sufficient domain expertise is necessary for the decision making of offshore outsourcing. Currently, there is no dynamic and automated tool for the decision making of application maintenance offshoring. Therefore, this study presents an Offshoring Decision Support System (OffshoringDSS), an automated and novel tool to make the offshoring decisions of application maintenance. The suggested tool is based on the Analytic Hierarchy Process (AHP) technique. The tool automatically performs all the calculations involved in the decision making and ranks the sourcing models. [ABSTRACT FROM AUTHOR]

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Users of Exhibit 21 cannot tell whether a tax haven subsidiary is actively operating or a dormant shell company. In this paper, we develop a new set of parsimonious measures to highlight the distinct mechanisms and tax effects of offshore sales to, as opposed to purchases from, tax haven countries, offering insights on the effects of certain types of offshoring activities on firms' tax burdens. Our main measure has about three times the effect of the mere existence of a haven subsidiary in explaining firms' effective tax rates. We detail the processes to predict the offshore activities in tax haven countries for firms without an Exhibit 21 and firms reporting no subsidiary operations in a tax haven country. Relative to the mere mention of a tax haven subsidiary in Exhibit 21, our new measures provide a richer information set to capture different types of economic activities in tax haven countries. JEL Classifications: G30; H25; H26; M41. [ABSTRACT FROM AUTHOR]

Although using a single vendor when outsourcing information technology (IT) services (i.e., single‐sourcing) is commonplace, splitting the IT service package among multiple vendors (i.e., multisourcing) is an increasingly popular strategy. However, our understanding of the factors that contribute to this trend is limited. Guided by a thorough review of the extant literature and interviews with industry experts, we focus on the influence of emerging technologies (i.e., cloud‐based services and automation services), vendor location (i.e., offshore or domestic), and experiential learning (i.e., client and vendor experience) on the choice between single‐sourcing and multisourcing for IT services. The trend towards more multisourcing exemplifies a broader movement towards greater disaggregation and distribution of knowledge work. Thus, we utilize a knowledge‐based perspective to develop our hypotheses for how the aforementioned factors relate to the likelihood of multisourcing. Analyzing a large database of IT service contracts, we find that cloud‐based services are less likely to be multisourced, but automation services are not significantly associated with the likelihood of multisourcing. We also find that more experienced client firms are more likely to adopt multisourcing. Conversely, our results indicate that more experienced vendors and vendors located offshore are less likely to be part of multisourcing arrangements. Exploratory post hoc analyses yield additional interesting insights related to client and vendor location. These findings advance our understanding of the drivers of the single‐sourcing versus multisourcing decision in IT and more broadly contribute to the literature on technology sourcing. Our study has normative implications for both client and vendor management teams. Highlights: Cloud‐based IT services are less likely to be multisourced, whereas the relationship between automation services and the multisourcing decision is more context‐specific.Vendor and client location are both consequential to the multisourcing decision as offshore vendors are less likely to be included in multisourcing arrangements and clients located in emerging economies are less likely to multisource automation services compared to clients located in more developed economies.Incumbent vendors working with experienced clients are at a greater risk of having their business disaggregated and contracted to multiple vendors, but, at the same time, this presents an opportunity for niche or specialty vendors to target experienced clients. [ABSTRACT FROM AUTHOR]

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Global value chains (GVCs) are both a product and a facilitator of the model of globalization that dominated for almost two decades following Soviet collapse in 1991. The North Atlantic Financial Crisis of 2007 onwards undermined that dominance, as did the subsequent economic stagnation and associated rising political and social discord. The reversion to more nationalist modes of discourse and policy marks the return of a more visibly geopolitical dimension to the global political economy. The Covid-19 pandemic has accelerated and accentuated these trends. This paper charts the emergence and consolidation of the era of "one world, ready or not", and employs the work of various critical authors, most prominently William Greider. Greider's extensive critique of US-led globalization, offshoring, and what has since become known as "supply chain capitalism" not only appears prescient by comparison with the work of contemporaneous, high profile representatives of the economics discipline who were its champions, but helps us to locate the sources of its unravelling. The implications of this for GVCs are outlined in the final section, which foresees a fragmentation of the world into spheres of influence dominated by regional powers, each of varying strength and cohesion. This will most likely result in the reconfiguration of many GVCs along more regional lines, as the dictates of efficiency clash with the requirements of supply chain resilience and the associated prerogatives of national security, as defined by those states at the centre of the new regional power blocs. Common to all phases of development discussed in this paper is the subordination of the peoples of the Global South, as the mechanisms of imperialism are adjusted and adapted to the changing conditions arising from the irreconcilable contradictions of global capitalism.

English Abstract: In the face of utopian discussions on global citizenship and cosmopolitan identities, this article argues that the concept of offshoring provides insights into rising realities in elite mobility and the formation of expat communities. I do this in the context of the proliferation of 'golden passport programmes', through which rich people are naturalised as citizens in the countries where they invest. Showing how the global citizenship utopia is materialised locally, I argue that golden passports are the continuation of offshoring by other means. Presenting an ethnographic portraiture of those enabling Russians to acquire the Cypriot passport, as well as how the Russophone community takes shape locally in Cyprus, the article shows how 'expat communities' can form as enclaves of safety that offer offshore convenience for certain elite community members. It also shows that golden passports exacerbate local inequality, undermining the egalitarian utopia of citizenship at large, with detrimental effects on the local sense of civitas. French Abstract: Face aux discussions utopiques sur la citoyenneté mondiale et les identités cosmopolites, cet article soutient que le concept de délocalisation permet de comprendre les réalités croissantes de la mobilité des élites et de la formation des communautés d'expatriés. Je le fais dans le contexte de la prolifération des « programmes de passeport doré », par lesquels les riches sont naturalisés citoyens dans les pays où ils investissent. En montrant comment l'utopie de la citoyenneté mondiale se matérialise localement, je soutiens que les passeports dorés sont la continuation des délocalisations par d'autres moyens. En présentant un portrait ethnographique de ceux qui permettent aux Russes d'acquérir le passeport chypriote, ainsi que la façon dont la communauté russophone prend forme localement à Chypre, l'article montre comment les « communautés d'expatriés » peuvent se former comme des enclaves de sécurité qui offrent une commodité de délocalisation pour certains membres de la communauté d'élite. Il montre également que les passeports dorés exacerbent les inégalités locales, sapant l'utopie égalitaire de la citoyenneté au sens large, avec des effets néfastes sur le sens local de la civitas. [ABSTRACT FROM AUTHOR]

SUMMARY: The offshoring of external audit work to so-called low-cost countries is prevalent among the Big 4 professional services firms. Despite this, our understanding of how this form of offshoring influences audit practitioners and the audit process is limited. This study examines how and why offshoring emerged as an organizational matter that changed the way audit work is organized in a Big 4 firm context. Our findings demonstrate how changes in the design of offshoring processes influence interactions between onshore and offshore auditors. We uncover how individual "boundary spanners" struggle to coordinate audit work across the multiple boundaries that separate onshore and offshore auditors. Furthermore, we show how the institutionalization of "boundary spanning" functions in organizational structures and processes can have the unintended consequence of widening the boundaries between onshore and offshore auditors. Finally, we offer evidence of the effect of offshoring on the learning process of onshore and offshore auditors. [ABSTRACT FROM AUTHOR]

We study how domestic firms adapt to increased import competition from China. Using a Danish employer‐employee matched dataset covering firms over the 1995–2007 period, we find that import competition significantly increases manufacturing firms' expansion of their business activities in the service industry (partial servitization); their probability of offshoring production activities abroad and of exiting the market. Import competition, however, does not induce firms to cease all of their involvement in manufacturing production by completely switching into service sector (complete servitization). These findings are confirmed using various robustness tests as well as an analogous analysis of a Portuguese employer‐employee matched dataset. [ABSTRACT FROM AUTHOR]

Copyright of Retos, Revista de Ciencias Administrativas y Económicas is the property of Universidad Politecnica Salesiana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Global Software Development (GSD) has been an emerging trend in the development of software globally, for the last two decades. Information Technology (IT) outsourcing includes application development, application maintenance, infrastructure management and business process outsourcing. Software maintenance aims to keep the IT system operational and to fulfill the client requirements. The maintenance is considered the longest phase of software life cycle that consumes about 60-70% of the total software budget. Maintenance of software is not only time consuming but also requires a significant human resources’ ratio. Mostly, software acquisition and maintenance consume a big portion of the total IT budget. The current study aims to evaluate the findings of the systematic literature review and to derive a list of critical success factors regarding offshore outsourcing decision of application maintenance. Thus, an empirical study is performed to validate the influencing factors that were identified by using systematic literature review. These factors are further validated by 93 outsourcing experts from 30 different countries. The collected data through online survey is analyzed based on variables such as respondents experience level, respondents’ locations (continents), experts’ positions. Similarly, the data is analysed based on Chi square test (linear by linear association) and Spearman Rank Correlation. Additionally, the identified factors through survey and systematic literature review are ranked by two different methods. Consequently, a project assessment model is proposed, based on the critical success factors for the sourcing decision of application maintenance.

This paper studies the implications of globalization for aggregate output and welfare when risk averse workers face the risk of unemployment. The impact of globalization on the welfare of workers and aggregate output depends on the degree of substitutability between domestic workers and imported inputs. When the degree of substitutability is high (low), then globalization reduces (increases) wages and increases (reduces) unemployment. Irrespective of the substitutability, free trade doesn’t maximize the aggregate output. A small tariff (import subsidy) increases aggregate output when the substitutability is low (high), however, it can exacerbate the distributional conflict. Domestic labor market policies such as unemployment benefits and severance payments can protect workers against labor income risk but the firing restrictions do not. Free trade is optimal when labor market policies provide insurance against unemployment.

The article is aimed at researching the status of the Ukrainian accounting services market; allocating the features, advantages and disadvantages of the existing models of organization of providing accounting services with use of crowd technologies, as well as exploring the prospects for their introduction into activities of national enterprises. The most common models of providing accounting services with use of crowd technologies are analyzed: outsourcing, cosoursing, offshoring, insourcing, outstaffing. It is determined that accounting models, along with significant advantages, have a number of drawbacks. It is noted that the choice of a certain model, the ability and necessity of its use depends on the volumes and types of activities and is left to the owners of the enterprise, taking into account the advantages and presence of an economic effect. It is defined that Ukrainian market of accounting services is represented by a large number of enterprises and individual entrepreneurs, who are increasing the volume of services sold and are in the greatest demand among businesses and institutions in comparison with the ordinary population and other categories of consumers. It is substantiated that, provided the use of services of outsourcers by business owners, it is advisable to focus on the compliance of those who provide services to certain criteria, the main ones among them: professionalism and competence in the specifics and strategies of the customer’s activity; responsibility for result and quality; privacy; cost of accounting services. It is defined that the use of crowd technologies by enterprises in the organization of the accounting process will contribute to its optimization, obtainment of significant benefits from the use of additional resources, and increase in the ability to adapt them to modern economic realities.

The research aims to investigate the career development of accounting specialists working in Business Process Outsourcing (BPO) and Shared Service Center (SSC) organizations. The study focuses on identi-fying the similarities and differences between career development in selected aspects within those two models of accounting outsourcing. The research was conducted using a questionnaire. The data were obtained from Polish accountants working in BPO and SSC in Cracow and analyzed using both descrip-tive and inferential statistics. We find a range of career development opportunities in accounting SSC and BPO centers. Accountants who focus on promotion, training, and international work environment most often choose job offers among BPO centers, although job satisfaction and work perception are compara-ble in SSC and BPO. Accountants with a higher level of job satisfaction and positive work perception in the current accounting service center stay in the BPO/SSC sector for longer periods.

Application maintenance consumes a considerable amount of an organization's time and resources each year. Almost 60% of IT budget is spent alone on application maintenance. The reason of offshore outsourcing of application maintenance is not only the reduction of maintenance cost but to free up the resources and to keep the focus on core products. Offshore outsourcing is a common business strategy that is used by companies to achieve cost savings about 20-50%. However, the decision making process of application maintenance is a complex phenomenon. It is based on a set of influencing factors, clients' requirements and nature of the project. Hence, the current study is aimed at the in-depth investigation of the complex sourcing decision process of application maintenance. Accordingly, a systematic literature review is performed to determine the influencing factors and critical success factors that will be used by the decision makers for the evaluation of projects before making the outsourcing decisions. A total of 15 influencing factors out of 52 selected papers were identified. Based on the defined criteria, amongst the identified factors, only 10 factors were ranked as critical success factors, which are employees' skills, cost, legal requirements, infrastructure, communication, knowledge transfer, maturity level, project management, language barrier and frequent requirements changes. Consequently, a sourcing model was proposed based on the identified critical success factors that help the IT managers and domain experts in making appropriate outsourcing decisions.

La COVID-19 es una pandemia devastadora. El vehículo para su propagación ha sido la misma red de transportes necesaria para la globalización. El objeto de este trabajo es determinar hasta qué punto la presente situación puede provocar una alteración de las cadenas logísticas de valor entre China y la UE, que a su vez implique un aumento de las asimetrías entre ambas partes. Analizaremos si triunfará el offshoring, el reshoring o el nearshoring. Para ello, realizaremos un análisis de ambos actores internacionales y de sus respectivas reacciones a la pandemia, tanto desde el punto de vista idiosincrático, como económico y administrativo.