Do Industry 4.0 technologies matter when companies evaluate reshoring decisions?

Fratocchi, Luciano; Stefano, Cristina Di

doi:10.1109/metroi4.2019.8792897

Cited by 4 publications

(3 citation statements)

References 38 publications

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“…This effect allows companies to offset the labor cost advantages of offshoring locations through a blurring of prices, promoting a productive reconfiguration of the firm. Thus, this approach predicts a reduction of the location advantages previously obtained in low-cost countries (Ancarani et al, 2019;Carbonero et al, 2020;Dachs & Seric, 2019;Fratocchi & Di Stefano, 2019. Consequently, developed countries tend to become relatively more attractive, which discourages offshoring and favors reshoring (De Backer & Di Stefano, 2021;De Backer et al, 2018).…”

Section: Automation and Off(re)shoringmentioning

confidence: 99%

“…Additionally, the increased investment in automation spreads the benefits of its applicability, bringing to production a higher quality and flexibility through precise and sophisticated processes with a low degree of error, as well as a great capacity for innovation at reduced costs, allowing the relocation of activities near, or in the domestic market (Ancarani et al, 2019;. Thus, I4.0 offers the possibility for firms to have faster responses in changing contexts and facilitates the delivery to customers if they are near reshoring zones (Fratocchi & Di Stefano, 2019).…”

Section: Automation and Off(re)shoringmentioning

confidence: 99%

See 1 more Smart Citation

Automation and Off(Re)Shoring: A Meta-Regression Analysis

Neves

Pinheiro²,

Afonso

et al. 2022

SSRN Journal

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Section: Automation and Off(re)shoringmentioning

confidence: 99%

Section: Automation and Off(re)shoringmentioning

confidence: 99%

Automation and Off(Re)Shoring: A Meta-Regression Analysis

Neves

Pinheiro²,

Afonso

et al. 2022

SSRN Journal

View full text Add to dashboard Cite

“…Lastly, Industry 4.0 requires an adequate technological infrastructure such as telecommunications, or a robust policy in favor of intellectual property (IP) protection and data privacy (Gadde & Jonsson, 2019;Keller & Zoller-Rydzek, 2019). Overall, the adoption of new technologies is argued to encourage manufacturing reshoring strategies if this branches out into the firm's network (Ancarani et al, 2019;Fratocchi & Di Stefano, 2019).…”

Section: Manufacturing Reshoring and Technological Pull Factorsmentioning

confidence: 99%

Regional factors enabling manufacturing reshoring strategies: A case study perspective

2021

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Firms' reshoring strategies have recently sparked academic and policy interest due to their contribution to rebalancing advanced economies. In line with the ongoing debate and by examining the journey of a company based in the West Midlands region of the UK, this work illustrates the adoption of a manufacturing reshoring strategy in response to a changing competitive environment. Further, by utilizing a mixture of primary and secondary data, this work not only shows how regional dynamics are pivotal for attracting manufacturing reshoring but also how regional characteristics can change the narrative on reshoring from a national to a regional focus. By doing so, this work demonstrates how regional implementation of industrial policies can facilitate a multiplier effect in the value of the region by increasing the attractiveness of hosting a manufacturing reshoring strategy.

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Adoption of digital technologies and backshoring decisions: is there a link?

Kamp

Gibaja

2021

Oper Manag Res

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The present paper assesses whether the adoption of Industry 4.0 technologies can be related to backshoring. It does so by -firstly- investigating the implementation of such technologies by industrial firms with foreign production plants, the experiences and intentions of these firms regarding the location of production activities, and -secondly- by analyzing backshoring cases among them.It finds that backshoring is a rare phenomenon, and it is questionable whether there is a correlation, left alone causality, between the adoption of digital technologies in home-based manufacturing sites and backshoring hitherto. And while the future may hold more backshoring movements in store, they may not be primarily due to the adoption of Industry 4.0 technologies at home-based plants. Instead, other (foreign) location-specific factors seem to have greater weight in the decision-making processes around backshoring operations. I.e., deteriorating sales forecasts in offshore places where firms have production activities, increases in institutional uncertainty in such places, rationalization of global production apparatuses, and/or a lack of possibilities to deploy foreign manufacturing activities and output for third markets. Also against the backdrop of events like the outbreak of Covid19 and the uncertainty-raising effect it has on international business, the trade-off between producing off-shore or bringing manufacturing activities back home is not likely to depend on technology adoption levels at home and abroad either.

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Do Industry 4.0 technologies matter when companies evaluate reshoring decisions?

Cited by 4 publications

References 38 publications

Automation and Off(Re)Shoring: A Meta-Regression Analysis

Automation and Off(Re)Shoring: A Meta-Regression Analysis

Regional factors enabling manufacturing reshoring strategies: A case study perspective

Adoption of digital technologies and backshoring decisions: is there a link?

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