Reshoring: a strategic renewal of luxury clothing supply chains

Setbacks, interruptions and turnarounds in the internationalization process: a bibliometric and literature review of de-internationalization

The paper presents a comprehensive review of research on de-internationalization, encompassing the themes of export withdrawal, subsidiary divestment, and backshoring or reshoring. A bibliometric technique (co-word analysis) on keywords from articles and book chapters published from 1980 to 2020 was initially used to confirm the main strands related to de-internationalization. Then, the study employed a bibliometric coupling analysis to identify the recent trends within each theme. The literature was divided into three clusters, which, using different but related terms, addressed the same phenomenon of firms’ decrease in foreign commitment. The ramifications of research on de-internationalization were examined for each of the clusters, mapping the issues deserving of further investigation and making recommendations for future research. The study uses an unprecedented method for understanding the de-internationalization phenomenon more broadly, delimiting its conceptual boundaries and mapping the different manifestations within a single theoretical domain.

A hybrid fuzzy-AHP-TOPSIS model for evaluation of manufacturing relocation decisions

Manufacturing relocation decisions are complex because they involve combinations of location modes like offshoring or reshoring, and governance modes like insourcing or outsourcing. Furthermore, the uncertainty involved in the decision-making process makes it challenging to reach a right-shoring decision. This study presents a hybrid fuzzy-AHP-TOPSIS model to support generic relocation decisions. Industry experts were involved in a pairwise comparison of the competitive priorities’ decision criteria. A meta-synthesis of empirical studies is used to generate theoretical relocation scenarios. The presented hybrid model is used to rank the relocation scenarios in order to identify the most pertinent alternative. The resiliency of the solution is presented through a sensitivity analysis. The results indicate that the proposed hybrid model can simultaneously handle all the main relocation options involving governance modes. Based on the input data in this study, the competitive priorities criteria quality, time and cost are shown to have a strong impact, whereas the sustainability criterion has a weak impact on the choice of relocation option. The research presented in this paper contributes to the research field of manufacturing relocation by demonstrating the suitability of the hybrid fuzzy-AHP-TOPSIS model for relocation decisions and the resilience of the results. Furthermore, the research contributes to practice by providing managers with a generic relocation decision-support model that is capable of simultaneously handling and evaluating various relocation alternatives.

Antecedents and enablers of supply chain reconfigurability and their effects on performance

The reconfiguration of supply chain is becoming a crucial concept used to deal with market disruptions and changes such as the COVID-19 pandemic, demand uncertainty, and new technologies. It can be defined as the ability of the supply chain to change its structure and functions in order to adapt to new changes. Its assessment requires an understanding of its quantitative factors to provide indicators that are easy to interpret. Effective reconfigurability assessment can be achieved by measuring quantitatively its six characteristics (modularity, integrability, convertibility, diagnosability, scalability, and customization). This paper aims at identifying the quantitative factors of each characteristic and their inter-relationships by using Total Interpretive Structural Modelling (TISM). The structural model obtained by TISM is applied to understand the dependency quantitative factors. Based on TISM results, a classification of quantitative factors is determined using "Matrice d'Impacts Croisés, Multiplication Appliquée à un Classement" (MICMAC) analysis. This article provides a better understanding of the six characteristics previously mentioned to improve the reconfigurability of supply chains by considering the interactions between their factors. Thus, this analysis helps managers to understand the characteristics that influence the change of the supply chain structure and those that enable changing the supply chain functions in order to optimize the supply chain reconfiguration process.

GVC-Oriented Policies and Urban Manufacturing: The Role of Cities in Global Value Chains

Studies on policies oriented to Global Value Chains (GVC) focus much attention on developing countries and upgrading opportunities. Recent trends related to digitalization, market requests, and new consideration for value linked to manufacturing challenges GVC-oriented policies in developed countries. Such policies may refer to the attractiveness of foreign investments or increase the value captured through upgrading. At the city level, explicit policies promoted by municipalities are oriented to attract and support manufacturing activities to increase employment, entrepreneurship, and urban specializations while leveraging the new technological scenario. However, despite their interests in policies for economic growth at the national and cluster levels, research on the Global Value Chain has paid limited attention to cities and their role as production contexts within value chains. Linking to research on urban manufacturing and based on an empirical study on six cities (Barcelona, Detroit, London, Milan, New York, and Paris), the paper advances the theoretical debate on urban-related policies in the GVC framework by proposing three different policy directions related to (a) enhancing value related to urban production; (b) sustaining new urban entrepreneurship (digital craftsmanship); and (c) shortening GVC (Urban Value Chains).

Adoption of digital technologies and backshoring decisions: is there a link?

The present paper assesses whether the adoption of Industry 4.0 technologies can be related to backshoring. It does so by -firstly- investigating the implementation of such technologies by industrial firms with foreign production plants, the experiences and intentions of these firms regarding the location of production activities, and -secondly- by analyzing backshoring cases among them.

It finds that backshoring is a rare phenomenon, and it is questionable whether there is a correlation, left alone causality, between the adoption of digital technologies in home-based manufacturing sites and backshoring hitherto. And while the future may hold more backshoring movements in store, they may not be primarily due to the adoption of Industry 4.0 technologies at home-based plants. Instead, other (foreign) location-specific factors seem to have greater weight in the decision-making processes around backshoring operations. I.e., deteriorating sales forecasts in offshore places where firms have production activities, increases in institutional uncertainty in such places, rationalization of global production apparatuses, and/or a lack of possibilities to deploy foreign manufacturing activities and output for third markets. Also against the backdrop of events like the outbreak of Covid19 and the uncertainty-raising effect it has on international business, the trade-off between producing off-shore or bringing manufacturing activities back home is not likely to depend on technology adoption levels at home and abroad either.

Luxury supply chain management: a framework proposal based on a systematic literature review

Purpose

This study aims to identify the main elements that describe the luxury supply chain. It discusses the relationship between them in a framework that organises and summarises the literature.

Design/methodology/approach

A systematic literature review was conducted that returned 288 papers, which were selected based on specific quality and theme criteria. Content analysis was used to investigate the alignment of critical success factors with the performance goals and configuration elements of luxury supply chains in the final sample of 66 papers.

Findings

The results provide a framework that clarifies the relationship between the configuration elements and supply chain performance goals and the critical success factors for three different levels of the luxury market. Depending on the level of luxury, performance goals and configuration elements assume a different importance and different characteristics. An understanding of these differences is relevant for defining strategies and managing luxury supply chains properly. The three different configurations also reveal new research avenues to be further investigated.

Research limitations/implications

The study is limited in terms of its data source as the papers reviewed were collected from only three academic databases.

Practical implications

The findings of this work help incorporate knowledge about luxury supply chain management into a framework that can be easily used for defining strategies and organising the supply chain according to the different levels of luxury.

Originality/value

This study represents an important evolution in organising the current literature on luxury supply chain management into a framework that covers critical success factors, supply chain performance goals and configuration elements for three different levels of luxury, which in turn creates promising opportunities for future enquiry.

Digital Innovation for the Sustainability of Reshoring Strategies: A Literature Review

Recently, some critical events (e.g., the economic decline, the growing socio-ecologic burden, even more demanding customers, etc.) have led several companies to re-think their “shoring” decisions. Therefore, many of them decided to reshore manufacturing or to bring back home production activities previously offshored. This phenomenon represents one of the current imperatives for research. In fact, the location where manufacturing takes place has a massive influence on the sustainability of firms on a local and global level. Therefore, to better understand what makes reshoring strategies sustainable as well as to identify the drivers that can boost it, further research is still needed. The explorative nature of this paper recognizes some motivations or drivers for making reshoring strategies sustainable. To this end, a structured and narrative literature review has been conducted to grasp and describe the main motivations and implementation characteristics that can make reshoring decisions sustainable. The achieved results better define reshoring and the influence that some drivers, especially digital innovation, can play on the related strategies and on their sustainability. In doing so, this work is one of the first contributions that jointly approaches reshoring, sustainability, and digital innovation.

Thirteen years of Operations Management Research (OMR) journal: a bibliometric analysis and future research directions

The journal of Operations Management Research (OMR) is a rigorous journal that started its publication in 2008. It publishes short, focused research studies that advance both the theory and practice of operations management. Considering the relevant OMR’s contribution to the field of Operations Management in the last years, this study provides an overall assessment of the journal performance by conducting a retrospective review. To elaborate on OMR's temporal development in terms of publications, authors, affiliated institutions and countries, citation patterns, and conceptual structure, we extract publications from Scopus database for the period 2008–2020. We rely on bibliometric techniques in addition to bibliographic coupling, keyword analysis, and content analysis. 166 documents were analyzed using RStudio, VOSviewer, and Microsoft Excel. Findings emphasize OMR’s steady productivity growth (3.24%). Narrowly, Olhager J. is the most productive authors while Kalchschmidt M. and Stentoft J. are the most influential authors (H-index of 4). Furthermore, USA contributes to the highest number of publications while UK is the most influential country in terms of citations. Cranfield School of Management, UK stands as the top cited university. The analysis of the thematic evolution concludes to three main clusters: "Manufacturing and Supply chain Performance", "Six Sigma and Lean Management", and "Reshoring, Backshoring and Offshoring". This study recommends to further investigate the implications of the fourth industrial revolution and the sequels of COVID-19.

Challenges to competitive manufacturing in high-cost environments: checklist and insights from Swedish manufacturing firms

Research on competitive manufacturing (CM) in high-cost environments has earlier indicated that firms struggle to remain competitive and that manufacturing operations often have been offshored to low-cost environments. The purpose of this research is to explore and create a compounded view of challenges related to both internal and external environments of firms when operating in high-cost environments. This issue has been investigated through a qualitative case study involving five manufacturing firms in Sweden. This research has empirically derived the challenges associated with sustaining CM in high-cost environments and developed a prescriptive checklist. Seven main categories of challenges have been identified, ranging from a micro level related to product characteristics and employee involvement, to a macro level related to supply chain collaborations and industry systems. This research contributes to the existing literature on CM in high-cost locations by explaining and detailing what constitutes challenges in this kind of environment.

Back-shoring vs near-shoring: a comparative exploratory study in the footwear industry

After decades of off-shoring strategies, companies are often critically re-evaluating their earlier location decisions; in doing so, sometimes they implement the so-called relocation of second degree. Among them, back-shoring (i.e., relocation to the home country) and near-shoring (relocation to the home region) are two of the alternatives attracting growing interest from scholars. This paper aims to shed new light on the variables influencing the choice made between these two alternatives. As requested in the extant literature, a contingency approach is adopted, focusing attention on the footwear industry. Given the exploratory nature of the paper, evidence from 41 back-shoring and near-shoring strategies are analysed, comparing data from Spanish and Italian companies. Collected data are adapted to test hypotheses concerning three sets of variables: firms’ characteristics, motivations for the second degree relocation and its barriers. Collected data show that firm’s size directly influences the chosen alternative since larger companies prefer to near-shore instead of back-shore. When considering motivations, while the “made in” effect does not influence the firm’s choice, availability of skilled contractors and/or government aids induces companies to relocate to the home country instead of the home region. Finally, companies fearing encountering barriers, in terms of skilled contractors’ availability and/or (re-)development of internal manufacturing competences, will prefer the back-shoring rather than the near-shoring option. The study is focused on two countries (Spain and Italy) where the manufacturing sector (and the footwear industry within it) is still relevant to the local economy. Findings cannot be generalized to countries/industries where the local industry has been totally dismantled, without a previous in-depth analysis. The findings obtained offer managers useful insights on the elements that should be carefully evaluated when considering back- and near-shore alternatives. Additionally, valuable insights are provided for policy makers that plan to design industrial policies supporting back-reshoring policy initiatives. To the best of our knowledge, this is the first paper in the extant literature addressing variables influencing the choice between back- and near-shoring alternatives.

Trade policy shocks in the UK textile and apparel value chain: Firm perceptions of Brexit uncertainty

Since the 2008 economic and financial crisis, the rise of populism and nationalism has been associated with increased protectionism and policy uncertainty in the world trade system, with profound side effects for international business (IB) activities and global value chains (GVCs). The aim of this paper is to investigate the way trade policy uncertainty linked to Brexit has affected firms’ behaviors along the GVC of the UK textile and apparel (T&A) industry. We draw upon data from an original survey carried out between June 2019 and January 2020 with 688 firms amongst UK T&A manufacturers, designers, and retailers to grasp their perception of Brexit uncertainty. We show that the uncertainty over trade policy between the UK and the EU – started in the wake of the 2016 referendum – has affected a significant number of firms operating upstream and downstream of the UK T&A value chain, which shows clear signs of ongoing restructuring. Our findings also provide some preliminary evidence of the way the (perceived) effects of trade policy uncertainty may vary depending on firms’ position, production phase, and degree of integration in the GVC. Policy directions for supporting the UK T&A value chain post-Brexit and implications for future IB research are discussed.

Risk Management: Rethinking Fashion Supply Chain Management for Multinational Corporations in Light of the COVID-19 Outbreak

Through an international business risk management lens, the widespread and catalytic implications of the 2020 COVID-19 pandemic on the supply chains (SCs) of fashion multinational corporations (MNC) are analyzed to contribute to existing research on supply chain management (SCM). While a movement towards agile, networked supply chain models had been in consideration for many firms prior to the outbreak, the pandemic highlights issues inherent in supply chains that employ concentrated production. We examined the current state of fashion supply chains, risks that have arisen historically and recently, and existing risk mitigation methods. We found that while lean supply chain management is primarily favored for its cost and waste reduction advantages, the structure is limited by the lack of supply chain transparency that results as well as the increasing demand volatility observed even before the COVID-19 outbreak. Although this problem might exist in the agile supply chain, agile supply chains combat this by focusing on enhancing communication and buyer-supplier relationships to improve information exchange. However, this structure also entails an associated increase in inventory and inventory costs. The COVID-19 pandemic has caused supply and demand disruptions which have resonating effects on supply chain activities and management, indicating a need to build flexibility to mitigate epidemic and demand risks. To address this, several strategies that firms can adopt to control for such risks are outlined and key areas for further research are identified which consider parties both upstream and downstream of the fashion supply chain.