The Reshoring of Business Services: Reaction to Failure or Persistent Strategy?

Filippo Albertoni, Stefano Elia, Silvia Massini, Lucia Piscitello

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Abstract

This paper investigates whether reshoring of business services is the result of company response to performance shortcomings of the initiative offshored or instead is motivated by persisting with original offshoring strategy (disintegration advantages, accessing new markets and cost-saving), regardless of offshoring performance. Our empirical analysis, based on data from the Offshoring Research Network, shows that both arguments hold. Moreover, when offshoring had been motivated by accessing to new markets and its performance is unsatisfactory, companies are likely to relocate. However, unsatisfactory performance of activities offshored for efficiency reasons or search of talent, do not necessarily lead companies to relocate elsewhere.
Original languageEnglish
Pages (from-to)417-430
Number of pages14
JournalJournal of World Business
Volume52
Issue number3
Early online date30 Jan 2017
DOIs
Publication statusPublished - Apr 2017

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