Offshoring and backshoring: A multiple case study analysis

By reviewing academic literature, we find that motivations of offshoring and backshoring are investigated separately. The comprehension of the two phenomena (i.e., backshoring and offshoring) are however undermined by this separation. This may also deny the conceptualization of backshoring as a possible step of the firm internationalization process. In order to fill this research gap, the goal of the paper is to (1) understand the relations (if any) among offshoring and backshoring motivations at firm level; (2) explore whether backshoring is a “failure” of the offshoring initiative, or rather the evolution of the firm's competitive and location strategies. Firstly, the authors conduct a content-based literature review for identifying key motivations of offshoring and backshoring, and then provide a theory- grounded framework. Secondly, they conduct a multiple case study analysis based on four companies, searching for common patterns in offshoring and subsequent backshoring initiatives. These four cases reveals how the motivations (Why) connect with the governance modes (How), and the location choice (Where). Building on the findings, the paper provides some propositions for future empirical research.