Drivers and barriers to reshoring: a literature review on offshoring in reverse

Abstract

Purpose The purpose of this paper is to clarify the rather blurry concept of reshoring and its main drivers and barriers. At the same time, the paper seeks to provide a much-needed overview of the scientific theories used in previous research on reshoring. Design/methodology/approach The paper gathers information from previous published research. Data were collected through a systematic literature review on “reshoring” using primarily qualitative research techniques. Through a structured keyword search and subsequent elimination of papers, 22 peer-reviewed journal papers made it into the final review. Findings There is currently no consensus on the definition or “theory of reshoring”. Drivers and barriers could be grouped into five different sets of dynamics: global competitive dynamics, home country, host country, supply chain and firm-specific. Research limitations/implications Researchers need to consider the future development of the field and work toward an accepted terminology. Models about reshoring decisions need to include several decision criteria, which goes beyond financial metrics. Practical implications Practitioners need to carefully consider the decision to reshore as to not make rushed decisions. The final decision needs to consider factors such as quality, risk and brand reputation. Originality/value The paper is, to authors’ knowledge, the first overview of earlier research in a research journal. It provides a much-needed overview of an emerging field that can hold great importance for both future research and production. The constructed framework structures the dynamics (drivers and barriers) associated with reshoring.