Bringing it back home? : The effects of Industry 4.0 on backshoring to the home country: A qualitative study

Abstract: The purpose of this thesis is to study the impact of Industry 4.0 on the backshoring of international companies. As well, this thesis will provide an in-depth look of how backshoring is being carried out under the wave of Industry 4.0. In order to conduct this research, key characteristics concerning the rather new phenomenon of backshoring have been evaluated and later correlated to internationalization and Industry 4.0. In this thesis, an abductive research approach was adopted as the research area was considered rather unexplored. The literature review of this thesis discusses theories regarding internationalization, Industry 4.0 and backshoring. The literature review leads to a conceptual framework that displays interrelations between the different theories. The conceptual framework was next used to investigate the empirical data that was procured from case companies. The findings from this empirical research are then outlined in the following chapter. The analysis chapter presents a comparison between the theory and data, according to the conceptual framework. The final chapter brings together the results from the analysis and integrates insights, limitations, proposals and suggestions for future studies. The main theoretical implications that this thesis has led to involves filling the research gap as well as a definition of the phenomenon of backshoring in a context of international business.The main practical implication is that Industry 4.0 has the potential to enable backshoring for international companies, but there needs to be a balance between cost, quality and availability of skilled labour and infrastructure. While the full effects have yet to be seen, research shows that companies are already taking advantage of increased productivity and efficiency through Industry 4.0 technologies. This thesis presents a new, original perspective on the phenomenon of backshoring, providing fresh insight into the topic. Additionally, this research can be valuable to international companies who have already embraced or plan to invest in Industry 4.0 technologies within their manufacturing process.