Reshoring decisions in the deglobalisation era: exploring influencing factors with the Eclectic Paradigm

Abstract

Purpose This study aims to explore the factors influencing companies’ decisions to bring manufacturing operations back to their home countries and to examine how these factors exert their influence. Design/methodology/approach This study uses a qualitative approach, conducting 16 in-depth interviews with managers involved in reshoring projects. The Eclectic Paradigm is used as theoretical framework. Findings A total of 69 influencing factors were identified, comprising 3% resource-seeking, 10% market-seeking, 41% efficiency-seeking and 17% strategic asset-seeking factors. Additionally, 29% of the factors were classified as hybrid-seeking. These factors were further categorised as drivers, barriers or enablers, providing a comprehensive understanding of their complex roles. Ten distinctive factors, such as customisation strategy and Information Technology (IT), emerged that were not previously reported in the literature, while seven factors cited in existing studies, including energy costs and knowledge transfer, were absent. Research limitations/implications This study offers a nuanced perspective on the multifaceted nature of reshoring decisions. The comprehensive framework developed in this paper provides valuable insights for manufacturers and policymakers. It contributes to the literature by identifying previously unreported factors and challenging established understandings. Future research could apply alternative or multi-theoretical approaches, and examine the relative significance of each factor, how this evolves over time and how it differs between reshoring and offshoring, thus developing a more comprehensive understanding of relocation decisions. Originality/value This study is one of the few to apply the Eclectic Paradigm to the analysis of reshoring, bridging gaps between influencing factors and underlying decision processes.