Reshoring: Evolution and Implementation

Abstract

Background: For decades, the phenomenon of offshoring in the realm of production and business services have become an industry mantra and one of primary strategies for many companies. However, after years of offshoring, there emerged a slowdown or reversal in the trend and global business observes a reshoring phenomenon. Reshoring as a new trend is growing and the number of reshoring cases announced both globally and in Sweden is increasing. Purpose: This study is to examine how companies’ reshoring decision making process evolve and how its implementation process looks like in practice. To achieve this, we explore the experience of two firms located in Sweden and study the approach these firms follow and thereafter, we analyse the difference between them and with the theoretical framework. Method: We use a qualitative research approach, where a multiple case study of two case companies is conducted and formulated by an abductive methodology. Conclusion: Our findings produce evidence that decision to reshore is perceived as a correction of the offshoring strategy and reversal of the previously offshored manufacturing activities. We find that companies modify the reshoring implementation process according to the type of a reshoring project in terms of type of production and their suppliers. And although they consider almost all the steps suggested by Project Management Institute PMI model, they do not execute them in the similar sequence, and they do not identify a specific timeframe to accomplish project purposes.