reshoring does home country matter

Abstract The role of the country, either home or host, in firms' internationalization has been widely analysed in the International Business field. A large number of studies have shown that home country shapes many aspects of firms' internationalization processes such as investment decisions, location selections, and entry modes. However, these studies mainly focus on the firms' foreign expansion. Little is known about the relations between firms' home country and reshoring processes. This paper aims to analyse whether and how reshoring projects are different across countries, thereby further exploring the underlying home country-related factors contributing to reshoring peculiarities. By using a dataset including 529 cross-industry reshoring projects developed by companies headquartered in five countries (i.e., US, Germany, UK, France, and Italy), the study shows that these projects differ in terms of industry, entry mode, firm size and motivations. Thus, reshoring turns out to be a phenomenon where each country has its own peculiarities. The research further sheds light on the possible institutional, cultural/cognitive and industry/resource-related factors underlying these specificities. This study contributes to both reshoring and international business literature by highlighting how reshoring differs across countries. It also provides policy and managerial implications, at a time when several governments are considering the economic and employment potential of this phenomenon

International purchasing offices in China: roles and resource/capability requirements

This is the author accepted manuscript. The final version is available from Emerald via the DOI in this record.Purpose - The purpose of this paper is to address global sourcing organisational design through the following research questions: how do the roles performed by International Purchasing Offices (IPOs) change over time?; what are the resources/capabilities required by an IPO for an effective performance and how do they change over time?; and what are the contingent factors affecting such changes? Design/methodology/approach - The authors employed an exploratory multiple case study approach and analysed 14 Western IPOs located in China for a period between 2007 and 2012. The data were primarily collected through 34 direct, semi-structured interviews of IPO heads and sourcing managers or senior buyers. Findings - The authors identify and discuss the importance of ten roles played by IPOs and 12 required resources/capabilities. Furthermore, considering the changes that occurred to these IPOs over a five-year period (2007-2012), the authors observe three distinct evolutionary behaviours (i.e. "overall development", "selective development", and "stable configuration") and highlight three contingent factors that jointly affect these behaviours (i.e. the architectural and technological complexity of the sourced items, annual volume sourced abroad, and experience in the foreign context). Originality/value - This paper contributes to the resource-based view of the firm in a global sourcing context by highlighting the resources/capabilities required by IPOs and discussing their characteristics. Furthermore, it proposes a typology of IPO micro-organisational evolutionary behaviours. Finally, it applies contingency theory and identifies three factors that might affect the evolutionary behaviours

Global purchasing strategy and International Purchasing Offices: Evidence from case studies

“NOTICE: this is the author’s version of a work that was accepted for publication in International Journal of Production Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Journal of Production Economics, 154, 284-298. DOI: 10.1016/j.ijpe.2013.09.007”Setting up an International Purchasing Office (IPO) is one of the key steps for firms doing global sourcing. This paper aims to explore the relationship between strategy and structure in a contemporary global purchasing context. We build a theory of IPOs, employing a case study method to address two research questions - what types of IPOs exist in China? And how may an IPO become strategic to its parent's global purchasing? We identify three types or clusters of IPOs along four dimensions: motives for sourcing from China; global purchasing strategy for China; IPO structure and IPO followership. We present a causal model and associated propositions to explain how an IPO may become more strategic for its parent company. In the model we identify that, in addition to the direct link of 'structure follows strategy', IPO followership can be an underlying construct, linking IPO structure and global purchasing strategy for China. The paper opens up new avenues for global sourcing research and provides new insights for managers on global purchasing strategy, specifically with respect to IPO organisational design and capabilities

International purchasing offices in China: a dynamic evolution model

“NOTICE: this is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review 23, 580-593. DOI: 10.1016/j.ibusrev.2013.09.006”The salience of the international purchasing office (IPO) in the management of international sourcing activities of multinational corporations (MNCs) has steadily increased, in developed and emerging economies, since the first adoption of this supply chain strategy in the 1980s. The aim of this paper is to develop an activity/role-based evolution model for IPOs, employing multiple case studies: 14 MNCs’ IPOs in China, studied by British, Italian, and Chinese scholars. Applying role theory in a global purchasing context, we identify eight routine roles and four strategic roles played by IPOs and propose that IPOs could lead an MNC's global sourcing in a geographical region. We challenge the unilinear and sequential nature of existing global sourcing process models and propose a dynamic evolution model, consisting of five stages differentiated by number, depth, and breadth of roles, in which IPOs could leapfrog some stages, re-trench (move back to lower stages) and be potentially withdrawn. Finally, we conclude that the stage of an IPO is determined by the strategic importance of China to its parent company

Entry modes in reshoring strategies: An empirical analysis

Abstract The Entry Mode (EM) choice is a fundamental issue in reshoring initiatives. Despite several authors have studied the determinants of offshoring EM, no study has investigated so far the factors affecting the reshoring EM and its relation with the offshoring EM. The purpose of this paper is to examine which factors influence entry mode choice in reshoring initiatives. We develop a conceptual framework that explains the reshoring EM in terms of country-, industry-, firm- and project-specific factors, in addition to the offshoring EM choice. Next, we test this model by using a sample of 677 cross-industry and cross-country reshoring projects. Based on the results, we find that offshoring EM significantly constrains the subsequent reshoring EM. More in detail, firms adopting offshore insourcing entry modes tend to retain these modes in reshoring. Furthermore, reshoring EM is explained by industry- and project-specific factors, while offshoring EM is influenced by a broader set of industry-, country-, and firm-specific factors. This study fills a gap in the reshoring literature by analysing influential factors in EM choice and by offering a comparison between the determinants of offshoring and reshoring EM

The ISO/IEC 27001 information security management standard: literature review and theory-based research agenda

Purpose \u2013 After 15 years of research, this paper aims to present a review of the academic literature on the ISO/ IEC 27001, the most renowned standard for information security and the third most widespread ISO certification. Emerging issues are reframed through the lenses of social systems thinking, deriving a theorybased research agenda to inspire interdisciplinary studies in the field. Design/methodology/approach \u2013 The study is structured as a systematic literature review. Findings \u2013 Research themes and sub-themes are identified on five broad research foci: relation with other standards, motivations, issues in the implementation, possible outcomes and contextual factors. Originality/value \u2013The study presents a structured overview of the academic body of knowledge on ISO/IEC 27001, providing solid foundations for future research on the topic. A set of research opportunities is outlined, with the aim to inspire future interdisciplinary studies at the crossroad between information security and quality management. Managers interested in the implementation of the standard and policymakers can find an overview of academic knowledge useful to inform their decisions related to implementation and regulatory activities

Performance implications of SA8000 certification

Purpose – The purpose of this paper is to shed light on the relationship between the adoption of Social Accountability 8000 (SA8000) – which is considered the most important ethical certification standard – and firm performance, building on agency and contingency theories. Design/methodology/approach – The authors analyse secondary longitudinal balance sheet data of listed firms employing a rigorous event-study approach and compare SA8000-certified companies to different control groups based on three matching criteria, i.e., industry, size, and pre-certification performance. The authors then study the moderating effects of the cultural features, the country’s development level, and the labour intensity on the causal relationship through multiple regression methods. Findings – The authors find that SA8000 certification positively affects labour productivity and sales performance but has no effect on profitability. Furthermore, the study supports that the relationship between SA8000 and profitability is moderated by two cultural features of the home country of the firms (i.e. power distance and uncertainty avoidance). Originality/value – This is the first study, which empirically tests the effects of the ethical certification SA8000 on firm performance using a cross-country sample. In addition, the authors contribute to the wider debate on the effects of corporate social responsibility practices on firm performance

International Sourcing: empirical evidences from a sample of Italian firms

Despite the increasing importance of international sourcing (IS), the literature still lacks empirical investigations and theoretical models that give cognitive and normative references on the phenomenon. This study proposes the first extensive analysis on IS dynamics in Italy, quantifying the size of IS in this context and describing some of its aspects qualitatively. Results of an empirical study on a sample of Italian firms are presented. The sample is composed of 78 Italian enterprises belonging to various industries. The empirical evidence documents: entity of the phenomenon, motivations and obstacles, kinds of items purchased abroad, vendor selection criteria, information sources, organisational approaches, and advantages of IS activities. The situation that emerges from the survey depicts a sample where IS is in a transitional phase passing from an initial stage (IS motivated by contingent factors) to a more advanced one where IS is part of an extensive international strategy. The results of this research are then compared with those emerging from other geographical contexts shown. Beside a descriptive valence, the study offers also a contribution of methodological nature, suggesting synthetic measures of the IS phenomena

Manufacturing internationalization: from distance to proximity? A longitudinal analysis of offshoring choices

Purpose – This paper aims to offer a long-term systematic picture of the evolution of manufacturing offshoring (in terms of intensity, geography and drivers) highlighting the changes in the surrounding context and the resulting transitions points (“points in time”) that have shaped its development path. Design/methodology/approach – Three statistical tools were adopted on a dataset of 644 cases. First, the authors resorted to multiple structural change tests to identify the transition points. Second, the authors explored offshoring geography by conducting a network analysis. Finally, the authors adopted gravity models to shed light on offshoring drivers. Findings – Results highlight three offshoring phases: expansion (2002–2006), reconsideration (2007–2009) and rationalization (2010 onwards). During the first phase, characterized by economic growth, firms were mainly interested in economic savings; offshoring to low-cost countries was the prevailing location strategy. Subsequently, during the economic crisis, the number of cases declined and the main drivers became marketbased factors together with the research for cost savings. Finally, in the third phase, when the economy was still stagnating and new manufacturing technologies appeared, the number of offshoring cases has further decreased, and technological- and market-based factors have become the main location drivers. Originality/value – The study is the first to adopt a systematic, empirical and quantitative approach to analyze the evolution of the manufacturing offshoring considering both the phenomenon itself and the triggering changes in the surrounding context. In doing this, the authors also tested the importance of considering the point in time in offshoring strategies