The Influence of Industry 4.0 on Globalisation Strategies of Multinational Enterprises : A Qualitative Study of MNEs and Their Business Decisions Regarding Offshoring and Reshoring Strategies

Abstract: Background: Historically, industrial revolutions enabled societal shifts in conjunction with technological advancements. The currently ongoing industrial revolution is the fourth, namely Industry 4.0. Industry 4.0 related technologies require a high level of integration to improve processes and yield more efficient flows of information, physical and financial assets. This integration happens within and between GPNs, which comprise of globally fragmented points of economic activities, including manufacturing activities. New technologies advance these GPNs, causing a qualitative shift, meaning where and how production and consumption activities are changing. The idea of Industry 4.0 is still within its infancy, where the study of Industry 4.0 drivers and barriers for MNEs remains unexplored. Industry 4.0 is in the process of transforming how industries operate with access to new advanced technologies. These technologies can affect GPNs and potentially influence related business decisions regarding offshoring and reshoring decisions in their globalisation strategies. In relation to Industry 4.0 drivers and barriers, this was already investigated for SMEs, leading to the purpose of this study. Purpose: This study investigates the influence of Industry 4.0 on the motivation of MNEs regarding offshoring and reshoring strategies within a global supply chain context. Method: This is a qualitative study, that explores this field through the experiences of industry experts of MNEs. Hence, the study takes a relativistic and social constructionist stance in terms of ontology and epistemology, to inquire into this topic through gathering and comparing in depth experiences. Furthermore, gathered data was analysed through a thematic analysis approach. Conclusion: The result of the study shows that Industry 4.0 is emerging as a comprehensive concept that goes beyond just the technologies, drivers, and barriers. Based on our findings, this is referred to as a value network, replacing the contemporary view on GPNs. Hence, this value network is emerging as its own globalisation strategy that directly influences the motivations for MNEs to offshore and reshore.