Factors for Reshoring Decision: A Supply Chain Perspective

Abstract: Purpose: The study aims to explore the supply chain factors that impacts reshoring decisions.Methods: The study followed a qualitative research method based on exploratory research. In order to attain the context of situation-based interpretation, semi-structured interviews were conducted based on two Swedish firms engaged in reshoring initiatives. The collected data were individually analysed followed by a cross-case analyses.Findings: The research findings identified several experiences within the supply chain factors that have an influence over the reshoring decision. Firstly, firms are required to secure the replacement of offshored suppliers in their home country and ensure the access to the abundance of raw materials while reshoring. Secondly, realignments are needed for components to suit with organizational values, integrate to obtain independence from external entities and utilize pre-existing assets to mitigate challenges. Thirdly, increase in customer participation for firm’s product decision and locally produced goods can further enhance brand perception. Lastly, proximity allowed firms to streamline logistical communication, deter investment cost and promote R&D capabilities.Contribution: The study contributes in the knowledge of reshoring through the lens of supply chain management and also provides managerial context for reshoring decisions. The sole focus on supply chain factors enhances the theoretical expansion of reshoring and allowing further study materials into the emerging research field of reshoring. In addition, the research findings from four different supply chain factors allows a multifaceted contribution for organizational managers. Managers can individually or conjointly utilize the ideas on resource, reconfiguration, customer and proximity for reshoring decisions.Conclusions: The results from the study and the fulfilment of the aim shows that reshoring is a case of strategic decision making by firms who aim to secure a better competitive standpoint by repatriating production back to the home country.