PurposeThe purpose of this paper is to illustrate how the introduction of new technologies can lead to reconsidering the division of the production process as well as the location of each stage, which may mean reshoring some of them.Design/methodology/approachThe research is based on the analysis of the consequences of new technologies developed and introduced in the market to be applied in the final stage of jeans manufacturing. The paper presents the relevance of this technology, based on an in-depth interview with the representatives of the firm as well as firm and press reports, specialised websites and so on. The information of the reshoring company has been confirmed by its press releases.FindingsThe results show that a new technology justifies the reconsideration of the stages in which the production process can be divided and, once this division is considered viable, the drivers for reshoring can become more/less important in the reshoring decision.Practical implicationsFirms that previously offshored should consider that new technological processes may lead them to slice their value chains differently, causing them to seek the optimal location for each of the stages.Originality/valueMost of the reshoring literature is based on a static framework where the production process is considered stable and the reasons for reshoring must reside in the change of relevant parameters (such as cost differentials, need to be more flexible, monitoring costs higher than expected, etc.). This paper reveals that changes in the production process, even in traditional sectors, may lead to reshoring/backshoring.
The offshoring of services has steadily expanded in recent years and acquired growing importance in certain tourism subsectors. The present study analyses for the first time the offshoring indices and the trend seen in tourism services, based on input–output data (Spanish National Accounts) during the 2000–2007 expansive period. A distinction is made between offshoring associated with international fragmentation of production and offshoring due to a shift from domestic to foreign suppliers. The results point to a relocation of intermediate services to foreign countries in certain tourism subsectors (including travel agencies and air and maritime transport), involving both the international fragmentation of production and a substitution of the source of supply.
Backshoring as a way of undoing the offshoring strategy has become quite common in many industries and countries. This paper analyses the reasons that may justify this strategy based on International Economics and Transaction Cost Economics. Specifically, we point that the framework to analyse offshoring can be valid, but that the knowledge, experience, etc. of the country that once hosted those activities reduce the costs in the second degree relocation. We present the results of a survey administered to firms in the Spanish footwear industry to evaluate such proposals. The results reveal that backshoring can be explained in the same theoretical framework as the offshoring decision and therefore this strategy simply constitutes a response to the characteristics of the environment of these firms since their offshoring strategy differed in terms of the destination country, business model, etc.
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