Small and medium-sized enterprises are reversing their previous offshoring decision by relocating manufacturing activities from low-cost countries to high-cost ones. However, it seems cost-related factors regarding location change failed to explain these activities completely. In order to understand the reason why SMEs reshored, this paper codifies four empirical observations and analyzes nine product-line decisions (six reshoring decisions, three offshoring decisions). It also develops and analyzes a system dynamics model of SMEs’ decisions (offshoring or reshoring) by integrating observations with relevant literature.
Why in the world did they reshore? Examining small to medium-sized manufacturer decisions
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Journal or media source:
Journal of Operations Management
Gray V.J.; Esenduran G.; Rungtusanatham M.J.; Skowronsky K. (2017) Why in the world did they reshore? Examining small to medium-sized manufacturer decisions Journal of Operations Management vol.(49-51),pp.37-51