Manufacturing Relocation Ambiguity Model: A Prerequisite for Knowledge Management

Abstract

Knowledge management and manufacturing relocation have been treated as independent spheres. However, for a relocation to be fruitful, knowledge management needs to be incorporated. The purpose of this research is to shed light on the lack of knowledge management in dynamic manufacturing relocation. In particular, the research focuses on the ability to change, adapt and revert manufacturing relocation decisions, that is, the dynamic nature (or use) of the concept. A Swedish company was used as a case study. Nine in-depth interviews were conducted with key informants at the company's headquarters in Sweden and its factory in China to capture a dyadic perspective. The findings demonstrate that: (1) knowledge transfer is crucial to create/sustain competitive advantage in the offshoring and reshoring phase; (2) lack of knowledge transfer results in limited learning outcomes with operational and strategic consequences in the relocation; (3) resistance to knowledge transfer in the offshoring creates a knowledge gap that consequently leads to relocation ambiguity in the reshoring phase; and (4) companies need to develop knowledge management strategies to promote knowledge transfer and learn from their international relocation, to cope with relocation ambiguity. Our theoretical contribution introduces the knowledge ambiguity framework, which is a result of insufficient knowledge transfer in the dynamic manufacturing relocation. Even if an organization relocates efficiently, it can fail to take advantage of knowledge transfer and development as potential learning for the organization.

Does Resilience Matter for Supply Chain Performance in Disruptive Crises with Scarce Resources?

“…In addition, our study found that flexibility can directly contribute to resilience and performance, while agility can only support resilience directly and supply chain performance indirectly (via resilience). Such findings, in relation to a severe disruption context, have not yet been reported in the literature, which so far has focused on network configuration (Ivanov and Dolgui, 2020), risk management (Wulandhari et al, 2023), manufacturing relocation (Fjellström et al, 2023), the combination of internal and external competencies (Y. Li et al, 2022), supplier concentration (Jiang et al, 2023), and so on.…”

“…Supply chain performance refers to the ability to maintain the flow of available products and services and ensure on-time delivery in line with customer demand (Gu, Yang and Huo, 2021). Owing to the disruptions exacerbated by the COVID-19 pandemic, interest in the resilience of supply chains has gained momentum over the last few years (Fjellström et al, 2023;Gillani, Kutaula and Budhwar, 2023).…”

Reshoring: A Road to Industry 4.0 Transformation

“…(2022) apply the behavioural theory of the firm to understand how environmental performance feedback influences reshoring decisions, and Fjellström et al. (2023) propose the knowledge ambiguity framework to investigate the role of knowledge transfer in dynamic manufacturing relocation. We summarize these contributing papers in Table 1 and position them in the landscape of reshoring research as visualized in Figure 1.…”

“…Reshoring decision considering stakeholders and environmental regulation (Sena et al, 2022) Reshoring of manufacturing operations in SDGs context (Choudhary et al, 2022;Fjellström et al, 2023;Zhang et al, 2022) Prior research on reshoring the localization of products and services as the future of global manufacturing cannot be ignored. Moreover, localization as a phenomenon originated from the need to offer content in various languages.…”

“…This special issue on reshoring and SDGs represents the culmination of work by various scholars in the fields of international business, international marketing and international trade. The contributed papers provide valuable insights into the reshoring literature by examining the decisionmaking processes (Sena et al, 2022), consumer perceptions (Dey et al, 2022;Foroudi et al, 2022;Gillani, Kutaula and Budhwar, 2022) and various factors influencing the reshoring of manufacturing operations (Choudhary et al, 2022;Fjellström et al, 2023;Zhang et al, 2022) in the context of SDGs. Choudhary et al (2022) challenge the assumption that reshoring automatically enhances supply chain sustainability, arguing for a more nuanced understanding of reshoring as a system reconfiguration.…”