The reshoring decision under uncertainty in the post-COVID-19 era

Abstract

Purpose Using insights from the supply chain resilience perspective and the international business literature, this study aims to investigate the determinants of firms’ decisions to reshore manufacturing under the high levels of uncertainty brought about by the ongoing US–China trade war and COVID-19 pandemic. Design/methodology/approach The proposed conceptual framework is tested using survey data collected from 702 Taiwanese firms with manufacturing in China. The firms were drawn from a database compiled by Taiwan’s Ministry of Economic Affairs. Findings The results show that two supply chain factors (tariffs and supply chain completeness) and two non-location-bound factors (labor cost and material cost) are critical determinants of the decision to reshore under uncertainty. Originality/value This research elucidates and empirically validates several factors that influence the reshoring decision in uncertain environments. The findings provide valuable theoretical, practical and strategic insights into how firms should manage their value chains in the post-COVID-19 era.

Uncertainty’s impact on adaptive performance in the post-COVID era: The moderating role of perceived leader’s effectiveness

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De la deslocalización a la relocalización: ¿Qué nos espera?

“…Los citados autores identificaron también once factores de contingencia vinculados a la relocalización, entre los que destacan el tamaño de la empresa implicada, su modo de propiedad y las políticas gubernamentales. Dos factores de la cadena de suministro (tarifas e integridad de la cadena de suministro) y dos factores no vinculados a la ubicación (costo de mano de obra y costo de material) son, de acuerdo con Chen et al (2022) habitualmente aspectos críticos en la decisión de relocalizar bajo incertidumbre . Albertoni et al (2017) analizaron la relocalización de empresas del sector servicios, concluyendo que puede ser respuesta a deficiencias de desempeño, motivadas por cambios en las condiciones externas o de errores de gestión, o bien a nuevas decisiones estratégicas una vez conseguidos los objetivos en un país anfitrión específico.…”

Global Value Chains after COVID-19: A Thematic Discussion&Resilience-Based Framework

“…Disruptions in the supply end of numerous value chains, shortages of vital products, and price volatility of some raw materials and finished products have shown the limitations of sourcing in faraway markets. In the medium to long term, GVCs may be redesigned to lower risk by becoming more regional or local, reducing the number of links, and sacrificing productive efficiency for supply security enhancements (Chen et al, 2022). Past studies (Enderwick & Buckley, 2020;Gereffi, 2020;Zhan, 2021) have hypothesised that the pandemic will lead to a more fragmented and regionalized global economy.…”