The paper is based on a large survey conducted in 2015 in Denmark and other Nordic countries. The 233 Danish companies involved in the study were divided in three groups according their location decisions in the last five years: a) companies that maintained production; b) companies that offshored; c) companies backshored. Authors investigated differences in performance between the three sub-samples. Results show there are no difference in perception of productivity, operational performances product quality and organizational flexibility. On the contrary, reshoring companies reported an increase in lead time performance in comparison with companies that have maintained their manufacturing at home. At the same time, offshoring companies reported lower unit costs and better cost accounting system compared with backshoring and no moving companies. In general, results indicate that a good corporate strategy conduces companies to better operational performances.
Performance outcomes of offshoring, backshoring and staying at home manufacturing
Country (if relevant):
Volume number and page:
vol.199 pp. 199-208
Journal or media source:
International Journal of Production Economics
Stentoft J.; Mikkelsen O.S.; Jensen J.K.; Rajkumar C. (2018) Performance outcomes of offshoring, backshoring and staying at home manufacturing International Journal of Production Economics vol.199 pp. 199-208