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Learning-by-doing is an important concept in economics as it is one of the main driving forces of economic progress. However, corporate learning is a slow process, so outsourcing manufacturing can override the long-term benefits of accumulating productivity knowledge. Semiconductor industry is also strongly featured by the learning effect, however, due to high capital requirements of building fabs, there are companies that fully outsource, while others try to keep production in-house. The chosen business model now gets further importance due to bottlenecks and supply issues perceived in the industry since the COVID-19 outbreak. Accordingly, we model the make-or-buy decision problem of a firm that decides on the optimal mix of outsourcing and in-house production, considering productivity gain via learning-by-doing and the economic impact of resilience. By presenting numerical simulations, we aim to capture the pre-pandemic and the current state of the semiconductor industry. Our model highlights that tendencies of being fabless were reasonable in the past. Although recent industry conditions have made in-house production more beneficial, this optimal strategy may be fragile due to changes of relative production costs or the extent of economic impact of chip shortages, which may underline the relevance of government incentives aiming to revitalise semiconductor industry. [ABSTRACT FROM AUTHOR]

Copyright of External Economic Bulletin / Külgazdaság is the property of KOPINT Konjunktura Kutatasi Alapitvany 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.)

Globalization may cause companies to broaden their customer bases, operate internationally, and serve more customers. However, it also entails dangers, including shifting circumstances, disruptions, and elevated prices. To address these issues, outsourcing has evolved, lowering outputs and service costs. To mitigate these risks, businesses employ strategies such as interventionism, protectionism, and regionalization. By investigating and simulating the interplay of outsourcing approaches to equip businesses with supply chain resilience (SCRES), this study aims to close the knowledge gap between the existing knowledge and global supply chain (GSC) risk management practices. To choose the best alternative for our case study company, we analyzed four distinct outsourcing techniques, namely offshoring, reshoring, nearshoring, and farshoring; furthermore, we investigated the outsourcing elements typically taken into account to achieve resilience. The results indicated that the reshoring method would be the most promising one for this company, under specific circumstances, in terms of attaining resilience in the manufacturing industry. [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]

For several decades, multinational enterprises (MNEs) have offshored their manufacturing activities to low-cost countries to achieve significant productivity gains. However, changes in the relative competitiveness of countries, social effects of deindustrialization in advanced economies and the vulnerability of global value chains (GVCs) revealed by the COVID-19 pandemic have encouraged some firms, supported by governments, to "reshore" part, or all of their offshore industrial operations back to their home country. Reshoring decisions are motivated by a variety of endogenous and exogenous factors that are empirically analyzed in this paper to understand how reshoring policies implemented by governments can more effectively address the factors driving the firms' location decisions. A review of the reshoring policies implemented in Europe, the UK and the US is conducted to provide general policy recommendations regarding policy instruments, SMEs, innovation and regionalization of value chains. This paper fills a gap in the literature by connecting the micro-level supply chain management analysis of firms' reshoring drivers with the macro-level economic policy perspective on reshoring. The review of existing reshoring policies calls for an in-depth analysis by the manufacturing sector and at the local level. [ABSTRACT FROM AUTHOR]

Purpose: When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to answer this question, too little empirical research directly addresses this. In this study, we quantitatively and empirically investigate the financial effect of companies' production footprint in low-cost and high-cost environments for different types of production networks. Design/methodology/approach: Using the data of 770 multinational manufacturing companies, we analyze the relationship between production footprints and profitability during four calendar semesters in 2018 and 2019 (N = 2,940), investigating the moderating role of companies' production network type. Findings: We find that companies with networks distinguished by both high levels of product complexity and process sophistication profit the most from producing to a greater extent in high-cost countries. For these companies, shifting production to low-cost countries would be associated with negative performance implications. Practical implications: Our findings suggest that the production geography of companies should be attuned to their network type, as defined by the companies' process sophistication and product complexity. Manufacturing in low-cost countries is not always the best choice, as doing so can adversely affect profits if the products are highly innovative and the production processes are complex. Originality/value: We contribute to the scarce empirical literature on managing global production networks and provide a data-driven analysis that contributes to answering some of the enduring questions in this critical area. [ABSTRACT FROM AUTHOR]

THE POLICY OF RELOCATING PRODUCTION IN THE EUROPEAN UNION IN THE CONTEXT OF THE STRATEGIC RIVALRY BETWEEN CHINA AND THE USA: TOWARD GLOBAL VALUE CHAINS TRANSFORMATION The policy of relocating production in the EU is a response to the challenges faced by the global economy. It is also an action in which the EU is trying to respond to the policy of its main economic competitors, i.e., the USA and China. The diagnoses suggest the need for regulators to take action. Therefore, countries are competing to implement measures that are supposed to increase the level of supply security and eliminate possible future disruptions, especially in areas that are considered the most sensitive. The aim of the article is to identify the extent to which EU policy may affect the relocation of production in the EU, and thus the shape of value chains, in the context of increased political uncertainty as a result of the US-China rivalry. This article argues that the EU’s policy of relocating production is aimed at diversifying and increasing the resilience of supply chains by favouring the location of production in the Member States. However, the instruments used by the EU are not fully adequate for the problems that have arisen.

The COVID-19 pandemic accelerated three trends that were already transforming economic development theory and practice. A backlash to economic restructuring and inequality, driven by globalization and technology, is now manifesting in reshoring and union movements. The resurgence of small and midsized cities, originally driven by increasing housing costs in coastal cities, has been reinforced by a rise in remote work. The uncertainty of today's complex economy is exacerbating long-term challenges of tracking economic change, making “shoot anything that flies” more important than ever. These trends highlight the need to focus economic development on building and supporting the workforce.

The current stage of development of international trade relations is followed by a growing protectionism. At the same time, the ideas of free trade and fair competition are still declared as key principles for the development of the world economy. One of the authors of these principles, as well as the entire modern system of international trade relations, is the USA. In this context, the possible refusal of the USA to comply with these principles is a serious challenge for the existing system of international trade. The author tries to answer the question if some measures of the US trade and industrial policy correspond to the basic principles of the international trade system. As an empirical basis there were used the works of Russian and foreign economists specializing in trade policy, international economic relations and the US economy. To answer the stated question about the compliance of the US trade and industrial policy with the principles of free trade and fair competition, the author uses methods of analysis and generalization to assess the nature of certain measures and mechanisms implemented in the US trade and industry. The author comes to conclusion about the protectionist nature of several legal acts and mechanisms of the US trade and industrial policy. Considering that not only certain legal acts, but also industrial programs are protectionist in nature, it should be assumed that retreat from the principles of free trade and fair competition is an element of the US position on the development of the national economy as well as international trade. The USA takes advantage of the imperfections of the existing system of international economic relations, demonstrating the use of protectionist measures contrary to the principles of free trade and fair competition.

Copyright of Brazilian Journal of Law & International Relations / Relações Internacionais no Mundo is the property of Relacoes Internacionais no Mundo 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.)

After decades of offshoring their manufacturing activities, an increasing number of companies are revising their location strategies and implementing reshoring decisions, including backshoring (relocation in the home country) and nearshoring (relocation in the home region) alternatives. It has been recognized that reshoring strategies are consistent with the sustainable production approach, since they allow companies to produce goods in a manner that is socially beneficial, economically viable, and environmentally less harmful over the whole life cycle of those goods. Additionally, there are early indications that reshoring can also promote and support sustainable consumption approaches. Consequently, reshoring has a wide range of impacts in both the home and the host countries, also in terms of the Sustainable Development Goals (SDGs). However, this topic has received little attention in the extant reshoring literature. This paper seeks to contribute to the discussion by adopting a two‐step approach. Initially, we analyze the very few contributions available on this topic; then, we identify and discuss which of the 17 SDGs are impacted by reshoring decisions at both the home and the host country level. It emerges that reshoring decisions have several and differentiated impacts in terms of SDGs. In general, these impacts are positive for home countries and negative for host ones. For this reason, a trade‐off emerges when a single relocation decision is taken and implemented. Based on this evidence, implications for scholars, managers and policy makers are presented and discussed. [ABSTRACT FROM AUTHOR]

ABSTRACTThis paper investigates the impact of reshoring, defined as the relocation of previously offshored production activities back to the home country or to a neighbouring country, on the productivity of manufacturing firms. It uses data from the European Reshoring Monitor on European firms in the period 2014–18. Reshoring increased total factor productivity of small and medium-sized firms, but did not affect productivity of large firms. The positive effect was stronger for firms that had offshored production to some Asian countries.

Supply-chain disruptions caused by the COVID-19 pandemic are of unparalleled magnitude because of a confluence of circumstances: a sudden rise in demand for some products, unforeseen shifts in demand points, supply shortages, a logistical crisis, and an unprecedentedly quick recovery in major economies. This article maps the changes that will occur in supply-chain planning and management in a post-COVID-19 world. It also reflects on the articles included in this special issue and draws key conclusions about how configurations of global supply chains might change. Automation and digitalization are likely to play a key role in these transitions. [ABSTRACT FROM AUTHOR]

Industry 4.0 (I4.0) is a transformative industrial paradigm that encompasses a set of technologies and principles that are increasingly essential for companies operating in the automotive sector. By embracing the principles and implementing the associated I4.0 technologies, automotive companies have the potential to improve their overall business performance, foster greater collaboration within the supply chain (SC) ecosystem and thereby strengthen their competitive edge. These technologies drive innovation, enabling the development of sustainable solutions and the alignment of products with ever-evolving customer demands. Therefore, this study explores the complex interplay between I4.0 technologies and business performance by providing insights from a multi-case study in the automotive sector. As the exploratory nature of this research is driven by the exploration of pathways, topics such as the implementation of I4.0 technologies, their impact on business performance and current important industry issues such as reshoring and the circular economy (CE) were also discussed. A research protocol was developed and semi-structured interviews were conducted with senior managers from six leading European automotive suppliers. The results show how significant improvements in business performance can be achieved by implementing advanced I4.0 technologies aimed at automating processes and making production lines more flexible. This led to improvements in productivity and product quality, while reducing production costs through the strategic use of available data. Furthermore, European automotive suppliers are engaging in collaborative initiatives with other SC actors to stay abreast of emerging innovation trends, to meet customer needs and to help share knowledge and resources. Overall, the implementation of I4.0 technologies leads directly and indirectly to more sustainable production and efficient resource management, as I4.0 technologies are designed to be energy efficient and reduce emissions. [ABSTRACT FROM AUTHOR]

This theoretical study explores how a home country's policies influence where multinational companies choose to produce. The study models subsidy negotiations between firms and both the home and foreign countries, revealing that offering reshoring subsidies might lead to repatriation of the multinational firm. If the host country values job creation's welfare gain from reshoring, a large reshoring subsidy from the home government can be seen as socially acceptable and encourage reshoring. However, if the home governments prioritize job creation less and the foreign government aims to retain the firm, pushing for reshoring may increase costs for the foreign country and reduce its social welfare. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of reshoring, defined as the relocation of previously offshored production activities back to the home country or to a neighbouring country, on the productivity of manufacturing firms. It uses data from the European Reshoring Monitor on European firms in the period 2014–18. Reshoring increased total factor productivity of small and medium-sized firms, but did not affect productivity of large firms. The positive effect was stronger for firms that had offshored production to some Asian countries. [ABSTRACT FROM AUTHOR]

Despite the rising interest for backshoring strategies by mass media, policy makers and public debates, academic research on the topic is relatively recent and still characterised by significant research gaps. Empirical evidence is scarce and often anecdotal, with a lack of studies focusing on specific industries and small-sized firms. Theoretical explanations are also fragmented with many unanswered questions. In particular, much of the existing literature has explored backshoring as a stand-alone phenomenon, independently from other production location strategies. In an attempt to fill these research gaps, we rely upon data from an original survey with around 700 firms from the UK textile and apparel industry to investigate different interrelated factors that influence backshoring strategies relative to offshoring and staying at home choices, within an analytical framework drawn from different international business perspectives, including operations and supply chain management. The paper contributes to the extant literature on backshoring by providing new empirical evidence based on originally collected firm-level data and focused on a single country and industry where smaller (and less studied) firms tend to prevail. Moreover, it helps strengthen the understanding of the phenomenon from a perspective which takes into consideration internationalisation as a non-linear process where firms adjust production location strategies based on a variety of changing conditions. [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]

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.

There is growing interest in the nature and possible extent of de-globalization. This paper explores the impact that protectionist measures have on multinational enterprise (MNE) reshoring back to the UK. Besides taking into account the global trends indicating a return to protectionism, the existing literature highlights various firm-level and structural country-level determinants of reshoring decisions. We test a conceptual model with parent-subsidiary firm-level data for the period 2009 to 2017. We conclude that firms that are more sensitive to wage costs in their overseas subsidiaries were more likely to reshore. We did not find that more capital-intensive firms had a higher propensity to reshore. We find that our results are mostly driven from UK MNEs with subsidiaries in EU. This result has clear implications for a potential Brexit effect. Theoretically, we base our findings in transactional cost economics to help explain why different types of firms behave in the way they do, and why different types of firms may respond in quite different ways to the same mix of institutions. [ABSTRACT FROM AUTHOR]

This article examines the Japanese and South Korean governments' reshoring and diversification policies of supply chains especially away from China since the early 2010s, with particular attention to the measures taken under the 2020–21 pandemic. The article also explores how much Japanese and South Korean reshoring from China, a subset of foreign economic policy, counts as economic statecraft as a deliberate government attempt to achieve geopolitical objectives using 'economic' means. One would expect these governments, which innovated proactive industrial policies and guided the private sector to catch up with developed economies in the 20th century, to have an easy time encouraging businesses to re-shore. While these two governments have employed various policy instruments to shift their economic dependence away from China, there is only limited success in motivating businesses to return to their homeland. This leads to an intriguing departure in our understanding of the capacity of those two Asian nations, which used to be considered prototypical 'developmental states' where governments have significant influence over business behaviour. This research brings more nuance and complexity to prevailing state-as-unitary-actor assumption of the economic statecraft literature and advocates closer attention to domestic sources of foreign economic policy. [ABSTRACT FROM AUTHOR]

The various stoppages and shortages observed in the context of the COVID-19 pandemic have exposed a series of contradictions and vulnerabilities, especially in the way production structures are organized territorially on a global scale. Although such disruptions are not unprecedented, the facts have drawn attention to the need to adopt strategies to make them more resilient. Based on the recent literature on the subject, this article aims to present a reflection on the content of reshoring, diversification and sustainability strategies, looking at their definitions (conceptual and practical meanings), complexities, challenges and implications for the economy and the territory. To complement the theoretical discussion, we will illustrate how these strategies are being incorporated into official documents relating to the new European industrial strategy. In methodological terms, bibliographical research and documentary research were carried out. Among the documents analyzed, the communications prepared by the European Commission in 2020 and 2021 stand out. Preliminary results show that the reallocation of fixed assets has several complexities and barriers, making diversification a less costly and more feasible solution in the short and medium term. In the European Union, in addition to diversification, sustainability has represented an important and necessary financial investment opportunity. [ABSTRACT FROM AUTHOR]

Since the outbreak of the Covid-19 pandemic, the disruption of supply chains has become a major concern for global firms. This article uses a representative sample of Spanish manufacturers that participate in global value chains to analyze whether firms are implementing strategies to respond to this concern. Using data for the period 2017–2022, we find that, on average, manufacturers have not increased the number of countries from which they source their input since the Covid-19 pandemic. Firms have not either shifted their imports to countries that are geographically and geopolitically close to Spain, and have not reshored imports. However, firms have significantly increased the stock of intermediates. Firms only diversify when they have one supplier, export to many destinations, and the imported input has a high risk of experiencing a supply chain disruption. Firms nearshore and friendshore when their main supplier is geographically distant. [ABSTRACT FROM AUTHOR]

Purpose: One of the fundamental ways to strengthen supply chains is by shortening them. This can be reflected in the degree of utilization of chains for exports and imports. This is crucial for efficient supply chain management as it enables simpler and faster logistics operations. However, on the other hand, comparative advantages, resource localization, and cost considerations may lead management decisions to refrain from significant supply chain shortening on a larger scale. Additionally, the increasing level of digitalization in the logistics industry, which supports supply chains, also contributes to this perspective. The purpose of this study is, therefore to examine the extent to which recent crisis situations have influenced the exchange of exports and imports, categorized by short, medium, and long supply chains. The Polish economy has been chosen as a reference for this analysis. Design/methodology/approach: Statistical methods based on time-series analysis were employed in this research. Findings: Despite the crises, supply chains have not been shortened. It can be observed that in the long term, as well as in the post-pandemic period, there has been a shift in the structure of supply chains towards longer chains, particularly noticeable in import dynamics. The reason why supply chain shortening for the purpose of enhancing resilience is not evident in the data, despite many declarative statements about this approach in empirical research, has been indicated. Research limitations/implications: The formulated arguments in favor of supply chain lengthening should be confirmed through research in various economies. Practical implications: The importance of this article lies in providing management decision-making suggestions, particularly regarding supply sources. Social implications: The establishment of shorter supply chains is crucial for environmental sustainability and meeting customer needs. Originality/value: Research in this field is often conducted in an aggregated form, without differentiating between various supply chain lengths. In this article, we have taken these factors into account. [ABSTRACT FROM AUTHOR]

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]

For several decades, multinational enterprises (MNEs) have offshored their manufacturing activities to low-cost countries to achieve significant productivity gains. However, changes in the relative competitiveness of countries, social effects of deindustrialization in advanced economies and the vulnerability of global value chains (GVCs) revealed by the COVID-19 pandemic have encouraged some firms, supported by governments, to “reshore” part, or all of their offshore industrial operations back to their home country. Reshoring decisions are motivated by a variety of endogenous and exogenous factors that are empirically analyzed in this paper to understand how reshoring policies implemented by governments can more effectively address the factors driving the firms’ location decisions. A review of the reshoring policies implemented in Europe, the UK and the US is conducted to provide general policy recommendations regarding policy instruments, SMEs, innovation and regionalization of value chains. This paper fills a gap in the literature by connecting the micro-level supply chain management analysis of firms’ reshoring drivers with the macro-level economic policy perspective on reshoring. The review of existing reshoring policies calls for an in-depth analysis by the manufacturing sector and at the local level.

This research explores the influence on manufacturing backshoring of improved key manufacturing resources in the home location of firms. Analysis of recent cases of backshoring in the European manufacturing industry shows that the production processes of firms that have backshored to their home location offer greater optimisation in terms of workforce, are more production assets intensive and have a higher technological level than when they offshored. The results highlight the relevance of internal factors in manufacturing backshoring analysis. This is of special interest from a production systems perspective because it is these internal factors that managers can control and therefore gain decision-making power regarding the location of manufacturing activities. This study also contributes to the debate on how innovations and improvements in manufacturing processes could increase industrial production and employment in advanced economies. [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]

The aim of this paper is to deepen the analysis of services reshoring in the Spanish services sector, both as a whole and for its constituent elements, examining both intra- and inter-sectoral components. Likewise, it analyzes the impact of this strategy on employment in the services sector, also differentiating between broad reshoring, intra-sectoral reshoring and intersectoral reshoring. The data used come from the Input-Output Tables of the Spanish National Accounts published since 2000. The results show Spanish service companies significantly reduced their contracting of activities abroad between 2008 and 2010, substituting foreign intermediate services for domestic services. This process of reshoring is observed with greater intensity in inputs of the same sector. However, since 2010 Spanish service companies have slightly increased their contracting of foreign services per unit of output, adopting new services offshoring strategies, although to a lesser extent than in the period prior to the recession. In the analysis of the effect of reshoring on services employment can be concluded that services reshoring has not generated employment in the Spanish service sector. [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]

Despite the growing body of literature on firms revising their production offshoring decisions, there is scarce research on how reshoring is actually implemented. This paper responds to this gap by analysing the case of FIVE, an Italian electric bike (e-bike) company that has insourced and relocated its production activities – originally outsourced to a Chinese manufacturer – to its home country. The research combines a design science approach with a longitudinal single case study method to gather both theoretical insights and practical managerial advice on how to conduct the reshoring implementation. The study captures the dynamic nature of the implementation process, showing how its elements evolve over time. Organisational learning emerges as a driving factor of reshoring. Each of the implementation stages is characterised by the development of a specific organisational process, which provides the know-how required for performing tasks at that particular stage. From a practical perspective, the study develops five reshoring implementation principles and a three-stage implementation process, thereby offering valuable guidelines for managers of SMEs who wish to undertake the reshoring decision. [ABSTRACT FROM AUTHOR]

Manufacturing relocation decisions are complex because they involve combinations of location modes like offshoring or reshoring, and governance modes like insourcing or outsourcing. Furthermore, the uncertainty involved in the decision-making process makes it challenging to reach a right-shoring decision. This study presents a hybrid fuzzy-AHP-TOPSIS model to support generic relocation decisions. Industry experts were involved in a pairwise comparison of the competitive priorities' decision criteria. A meta-synthesis of empirical studies is used to generate theoretical relocation scenarios. The presented hybrid model is used to rank the relocation scenarios in order to identify the most pertinent alternative. The resiliency of the solution is presented through a sensitivity analysis. The results indicate that the proposed hybrid model can simultaneously handle all the main relocation options involving governance modes. Based on the input data in this study, the competitive priorities criteria quality, time and cost are shown to have a strong impact, whereas the sustainability criterion has a weak impact on the choice of relocation option. The research presented in this paper contributes to the research field of manufacturing relocation by demonstrating the suitability of the hybrid fuzzy-AHP-TOPSIS model for relocation decisions and the resilience of the results. Furthermore, the research contributes to practice by providing managers with a generic relocation decision-support model that is capable of simultaneously handling and evaluating various relocation alternatives. [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.