Open the box: A behavioural perspective on the reshoring decision-making and implementation process |
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| Institution: | 1. University of Bologna, Italy;2. Politecnico di Milano, Italy;3. University of L''Aquila, Italy;4. University of Bergamo, Italy;1. Department of Organization Engineering, Business Administration and Statistics, ETSII, Universidad Politécnica de Madrid (UPM), 28006 Madrid, Spain;2. Department of Industrial Economics and Management, Royal Institute of Technology (KTH), SE 100 44 Stockholm, Sweden;1. Lund University, Dept. of Industrial Management and Logistics, SE-22100 Lund, Sweden;2. Tampere University of Technology, Dept. of Industrial Management, FI-33101 Tampere, Finland;3. University of Southern Denmark, Dept. of Entrepreneurship and Relationship Management, DK-6000 Kolding, Denmark;1. Department of Applied Economic Analysis, University of Alicante, Aptdo. 99, 03080 Alicante, Spain;2. Faculty of Economics and Business Studies, Campus del Espinardo, 30100 Murcia, Spain;1. Politecnico di Milano, School of Management, P.zza Leonardo Da Vinci, 32-20133 Milano, Italy;2. Alliance Manchester Business School, Manchester Institute of Innovation Research, The University of Manchester, Booth Street West, M15 6PB Manchester, United Kingdom |
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| Abstract: | In the realm of manufacturing location decisions, reshoring has increasingly attracted the attention of practitioners, policy makers and scholars. While many articles have analysed the drivers of reshoring decisions, the decision-making and implementation process still lacks empirical analyses. This paper addresses this gap with a grounded theory approach, in particular, through an iterative process going back and forth between the theoretical and empirical worlds. By analysing four cases from the textile-clothing-leather-footwear industry, we demonstrate that the process characteristics are affected by the behavioural features of the decision itself, such as rationality, complexity and anchoring. Our study highlights the relevance of the behavioural approach in reshoring decisions and provides evidence of many challenges that managers should be prepared to face. It further offers advice to policy makers, warning them about the dark side of reshoring and emphasizing their role in supporting companies to take structured rather than intuitive sub-optimal decisions. |
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| Keywords: | Backshoring Reshoring Operations management Supply chain management Bounded rationality Decision-making |
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