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This paper contributes to the emerging literature on reshoring by taking a value-driven enquiry into the renewal of supply chain strategy. It enhances the understanding of the use of reshoring in generating the value demanded by a changing business model. An iconic British high-end clothing brand, Burberry, is the chosen case study to explore the r...
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Citations
... Pragmatic approaches towards the past and heritage typically appear in publications using the term "corporate heritage." Management and marketing scholars look at corporate heritage as leverage to gain competitive advantage without questioning the structures that enable the firms to do so and their broader social consequences (Balmer 2011;Pecot et al. 2018;Robinson and Hsieh 2016). Papers on "heritage marketing" examine powerful interpretations and narratives that help stakeholders identify with firms, highlighting nostalgia (Riviezzo, Garofano, and Napolitano 2021, 11), or uniqueness (Aeon and Lamertz 2021, 578). ...
Corporate enterprises have long embraced their historical legacy, preserving not only documents in their archives, but also buildings, and old equipment from their past operations. Scholars in management and marketing studies have dedicated attention to exploring the heritage of business organizations since the 2000s, primarily interested in how firms leverage their historical legacies to enhance performance, build identity, and ensure long-term success. This has, however, developed independently from the interdisciplinary field of cultural heritage studies, which largely overlooks how corporate enterprises deal with what they see as their own heritage. The paper bridges this divide by reviewing existing heritage approaches in management and marketing studies literature and exploring the potential of addressing this corporate heritage discourse in the field of critical heritage studies. It argues that since socioeconomic interests invariably influence heritage processes, engaging with this corporate heritage discourse may enhance our understanding of the complex interplay between organizations, heritage, and societal dynamics in the broader context of heritage studies.
... Furthermore, in determining the spread of reshoring, there are problems related to the lack of skilled workers in the host country or the lack of knowledge about the foreign destination. Finally, today, increasing attention is paid to brand value in terms of social responsibility and quality [6]. Therefore, the need to increase customer satisfaction and the built-in effect play a key role in deciding whether to re-establish a business. ...
... The reshoring phenomenon described in (38) also affects the expected location of production (6). For t ∈ (max{t, 0}, T], we obtaiṅ ...
... See Equation (38). 6 This is the most informative situation: offshoring occurs in the first part of the programming interval when there is enough time to take advantage of the low production costs in the South country; reshoring, on the other hand, occurs at the end of the programming interval and is stimulated by sufficiently high incentives paid by the North country; see Equations (38)-(40). ...
We present a two-country model (North and South) that describes the phenomenon of offshoring and reshoring. The model is a continuous time-controlled Markov chain with binary states. The main trade-off involves production costs and transaction costs between one country and another. In the first part of this paper, we identify the key parameters of the model: the difference in unit production costs between the two countries considered, the marginal cost of transitioning between countries, and the incentive paid by the North country to all companies that have not relocated at the end of the planning interval. The final goal of our paper is to understand how national tax incentives can influence this process.
... This enables the firm to charge a premium price that offsets the increase in labor costs generated by reshoring. For instance, the UK fashion company Burberry moved its manufacturing production back to the UK, in order to be associated with the idea of "Britishness" in order to tell a story about the firm's heritage (Robinson and Hsieh 2016). ...
For several decades, multinational enterprises (MNEs) have offshored their manufacturing activities to low-cost countries to achieve significant productivity gains. However, changes in the relative competitiveness of countries, social effects of deindustrialization in advanced economies and the vulnerability of global value chains (GVCs) revealed by the COVID-19 pandemic have encouraged some firms, supported by governments, to “reshore” part, or all of their offshore industrial operations back to their home country. Reshoring decisions are motivated by a variety of endogenous and exogenous factors that are empirically analyzed in this paper to understand how reshoring policies implemented by governments can more effectively address the factors driving the firms’ location decisions. A review of the reshoring policies implemented in Europe, the UK and the US is conducted to provide general policy recommendations regarding policy instruments, SMEs, innovation and regionalization of value chains. This paper fills a gap in the literature by connecting the micro-level supply chain management analysis of firms’ reshoring drivers with the macro-level economic policy perspective on reshoring. The review of existing reshoring policies calls for an in-depth analysis by the manufacturing sector and at the local level.
... This is essentially why organizations engage in mergers and acquisitions. Robinson and Hsieh (2016) further contribute to the understanding of organizational behavior in relation to resource-related challenges. They explain that organizations make decisions based on management strategies influenced by internal and external agents who control vital resources. ...
Operations strategy offers the organization a limitless framework for creating priorities for how to make the greatest use of the assets at hand through effective operational activities in an effort to gain a competitive edge and accomplish managerial goals. The main objective of this study was to establish the influence of layout design strategy on the performance of retail chains in the Nairobi Central Business District. The study was anchored on the resource dependency theory. The study adopted a descriptive research design and the target population was 34 retail chains within the Nairobi CBD area. The sample population involved 80 managers who were in charge of the retail chains in Nairobi CBD. Self-administered structured questionnaires were used to collect primary data. Data was analyzed using descriptive and inferential statistics. The study found that layout design strategy has a positive significant influence on the performance of retail chains in the Nairobi Central Business District. This is because an increase in a unit of layout design strategy leads to an improvement of the performance of the retail chains. The study recommended that retail chains should pay meticulous attention to store layout and product positioning. The study also recommended that regular assessments should be conducted to ensure that products are strategically placed for easy customer identification. Implement a data-driven approach to store layout optimization, considering customer traffic patterns and preferences. This can enhance the overall shopping experience and drive higher sales.
... These findings show the core role of the technical and organisation requirements associated with digital servitisation in explaining reshoring. The need to make good use of knowledge transfers to production plants (Ashby, 2016;Fjellström et al., 2023;Sayem et al., 2019), the need to be close to customers and markets (Fjellström et al., 2019), access to human resources with the necessary qualifications and skills (Boffelli et al., 2021;Lampon & Gonzalez-Benito, 2020;Moradlou et al., 2022;Moser, 2013), the efficient reorganisation of supply chains (Park & Hong, 2017;Robinson & Hsieh, 2016;Van Hoek & Dobrzykowski, 2021) and the need for R&D and production operations to be close to each other (Bals et al., 2016;Pearce, 2014) are also relevant factors. All these circumstances share the need to locate production plans in a setting where they can adapt their technologies to new production requirements (Lund & Steen, 2020;Pegoraro et al., 2022). ...
... T&A, a highly globalised, consumer-driven, and labour-intensive sector that has experienced extensive offshoring, has seen one of the largest numbers of manufacturing backshoring decisions over the last decade (Delis et al. 2017;Eurofound 2019;Vanchan et al. 2018;Wan et al. 2019a). In particular, this trend has received considerable attention in the UK, with many examples of renowned fashion brands and retailers announcing to increase domestic sourcing or production at the expense of offshoring (Ashby 2016;Robinson and Hsieh 2016). However, evidence on backshoring in the T&A industry remains largely circumstantial (Moradlou et al. 2022): most research has focused on the shoes business rather than the broader T&A sector, which has been only partially investigated (Baraldi et al. 2018;Di Mauro et al. 2018;Merino et al. 2021). ...
... Supply network relationships have become increasingly complex due to rising labour costs, increasing competition in high manufacturing competences, growth of consumer markets in emerging economies, and technological improvements in advanced countries (McKinsey and Company 2018). In this context, not only labour costs but also product quality, production control, minimisation of counterfeiting risk and intellectual property theft, as well as compliance with rising environmental and social standards, have become key factors for competitiveness (Pal et al. 2018;Robinson and Hsieh 2016). The development of fast fashion systems and the rapid increase in online shopping with a highly volatile demand have made operational flexibility, shorter lead times, small production runs, lower inventory levels, and proximity to final markets gradually more relevant (Fratocchi and Di Stefano 2019;Hammer and Plugor 2016;Moradlou et al. 2022). ...
... However, in the aftermath of the 2008 economic and financial downturn, the sector has experienced a renewed growth, driven also by increasing domestic demand (Hammer and Plugor 2016;Robinson and Hsieh 2016; The Alliance Project 2017). Between 2009 and 2015, national production raised from £7.6 to £9.1 billion, Global Value Added (GVA) from £2.5 billion to £3.3 billion, and employment from 82,000 in 2013 to 109,000 in 2017 (UKFT 2018). ...
Despite the rising interest for backshoring strategies by mass media, policy makers and public debates, academic research on the topic is relatively recent and still characterised by significant research gaps. Empirical evidence is scarce and often anecdotal, with a lack of studies focusing on specific industries and small-sized firms. Theoretical explanations are also fragmented with many unanswered questions. In particular, much of the existing literature has explored backshoring as a stand-alone phenomenon, independently from other production location strategies. In an attempt to fill these research gaps, we rely upon data from an original survey with around 700 firms from the UK textile and apparel industry to investigate different interrelated factors that influence backshoring strategies relative to offshoring and staying at home choices, within an analytical framework drawn from different international business perspectives, including operations and supply chain management. The paper contributes to the extant literature on backshoring by providing new empirical evidence based on originally collected firm-level data and focused on a single country and industry where smaller (and less studied) firms tend to prevail. Moreover, it helps strengthen the understanding of the phenomenon from a perspective which takes into consideration internationalisation as a non-linear process where firms adjust production location strategies based on a variety of changing conditions.
... This was further driven by the termination of the Multi-Fibre Arrangement in 2004 (Rasiah, 2012). However, the downside of this was the impact the move had on product quality and reliability, as well as its adverse impact on environmental and social conditions, such as poor working conditions, and unfair wages in the host countries (Robinson & Hsieh 2016), which drove the United States to impose the acceptance of the labour covenants of the International Labour Organization (ILO) and pressures on environmental and social conditions around the "everything but arms" clause by the European Union. ...
... Euromonitor (2022) estimates that the global luxury apparel market exceeded $84 billion in 2021 and could enjoy a robust 5 percent annual growth through 2026 despite the pandemic. Data further show that garments made by high-wage developed economies often target the luxury or premium market segments(Robinson & Hsieh, 2016). For example, according to EDITED, measured by the number of SKUs, as much as 94.2% of apparel labeled "Made in Italy," "Made in Germany," "Made in France," and "Made in the UK" sold in the global retail market from January 2018 to December 2021 were in the premium or luxury ...
Purpose
Given the heated academic and policy debate regarding the fate of garment manufacturing in a high-wage developed economy in the 21st century, this study aims to explore the production and export strategies of apparel “Made in Ireland.”
Design/methodology/approach
A logistic regression analysis of 4,000 apparel items at the stock keeping unit (SKU) level sold in the market from January 2018 to December 2021 was conducted to evaluate the production and export strategy of apparel “Made in Ireland” versus foreign-made imported items sold in Ireland.
Findings
The statistical results showed that Ireland’s apparel manufacturing sector survived the market competition by leveraging non-price competing factors, such as distinct product assortment, cultural heritage, history and traditional craftsmanship.
Originality/value
The findings challenged the conclusions of the classic trade and economic development theories regarding the trajectory of the garment manufacturing sector and called for a rethink about the strategies for expanding garment manufacturing in a high-wage developed country in today’s global economy.
... "Reshoring" is the term with the third-highest TF-IDF score. Reshoring is moving production operations back to the parent company's home nation, regardless of who owns the relocated operations [154]. The COVID-19 pandemic has caused several SC disruptions, and reshoring is a technique with excellent potential for mitigation. ...
The current COVID-19 pandemic has virtually disrupted supply chains worldwide. Thus, supply chain research has received significant attention. While the impacts have been immeasurable, organizations have realized the need to design strategies to overcome such unexpected events. Therefore, the supply chain research landscape has evolved to address the challenges during the pandemic. However, available literature surveys have not explored the power of text analytics. Hence, in this review, an analysis of the supply chain literature related to the impacts of COVID-19 is performed to identify the current research trends and future research avenues. To discover the frequent topics discussed in the literature, bibliometric analysis (i.e., keyword co-occurrence network) and text mining tools (i.e., N-gram analysis and topic modeling) are employed for the whole corpus and the top-three contributing journals (i.e., Sustainability, International Journal of Logistics Management, Operations Management Research). Moreover, text analytics (i.e., Term Frequency-Inverse Document Frequency: TF-IDF) is utilized to discover the distinctive topics in the corpus and per journals. A total of 574 papers published up to the first semester of 2022 were collected from the Scopus database to determine the research trends and opportunities. The keyword network identified four clusters considering the implementation of digitalization to achieve resilience and sustainability, the usage of additive manufacturing during the pandemic, the study of food supply chains, and the development of supply chain decision models to tackle the pandemic. Moreover, the segmented keyword network analysis and topic modeling were performed for the top three contributors. Although both analyses draw the research concentrations per journal, the keyword network tends to provide a more general scope, while the topic modeling gives more specific topics. Furthermore, TF-IDF scores unveiled topics rarely studied, such as the implications of the pandemic on plasma supply chains, cattle supply chains, and reshoring decisions, to mention a few. Additionally, it was observed how the different methodologies implemented allowed to complement the information provided by each method. Based on the findings, future research avenues are discussed. Therefore, this research will help supply chain practitioners and researchers to identify supply chain advancements, gaps in the literature and future research streams.
... These facilitate sampling, bespoke production, and small batch runs of designs. Other interviewees also remarked on signs of manufacturing reshoring (Robinson and Hsieh 2016), with both renowned designers and high-street retailers moving parts of production processes back to London because of shorter lead times, higher flexibility and control of production and environmental issues: ...
In response to globalization of traditional manufacturing and the growing significance of a symbolic economy, fashion cities are now formed by different mixings of material, design/creative and symbolic forms of production. The intersection between these elements is particularly evident in the global fashion cities, which have experienced a profound process of deindustrialization and a shift between manufacturing and symbolic economies. This paper explores London’s relationship with fashion through the perspectives of key industry actors. We draw upon 30 semi-structured in-depth interviews undertaken between 2016 and 2018 to explore the interplay between material, creative and symbolic forms of fashion production in the city. Interview material is supported by the analysis of data collected from the Office for National Statistics and the Higher Education Statistics Agency. London’s fashion ecosystem is seen as having strong focus on creativity, artistic values and forms of symbolism, which are however regarded as in tension with a viable fashion design industry, an effective business culture and manufacturing system. The paper contributes to the literature on the fashion’s positioning in urban economies by shedding light on the interaction between production, creative and symbolic elements in a global creative city.
