Comparing offshoring and backshoring: The role of manufacturing site location factors and their impact on post-relocation performance

The paper investigates the role of three manufacturing location factors (access to low-cost manufacturing, proximity to market and access to competences) as drivers for offshoring and backshoring strategies. Authors also analyze the relationship between these factors and companies performances. The study is conducted on the base of a survey regarding 133 offshoring and 99 backshoring projects implemented by Swedish manufacturing companies with more than 50 employees. Results show that location factors are relevant for both offshoring and backshoring, but the access to competences is extremely important in the case of relocations at the home country.