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Network effects of partial reshoring in the internationalization process
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.ORCID iD: 0009-0004-4450-0768
2025 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 34, no 3, article id 102401Article in journal (Refereed) Published
Abstract [en]

A growing number of firms is considering reshoring as an option to cope with the increasingly complex international business environment. However, especially when concerning only part of the activities outsourced to suppliers, reshoring may harm the firm’s business relationships in the host country and restrain access to essential resources and capabilities. This paper examines the impact that reshoring outsourced activities has on the host-country network. Building on a case study and key concepts from the business network view of internationalization, the study reveals concurring but contrasting effects for the reshoring firm: the tangible commitment of the firm and its structural embeddedness in the foreign market diminish, while the intangible commitment and relational embeddedness simultaneously increase. Accordingly, the resulting host-country network counts fewer but deeper relationships. The study advances our knowledge of both internationalization and reshoring. The former is extended by furthering the understanding of the network and nonlinear views of internationalization, while the latter by exposing the multidirectional network effects of partial reshoring and discussing it in relation to recent global disruptions.

Place, publisher, year, edition, pages
Elsevier, 2025. Vol. 34, no 3, article id 102401
Keywords [en]
Reshoring, Outsourcing, Business networks, Case study, Relationship Commitment, Network Embeddedness, Nonlinear Internationalization, Geopolitics, De-risking
National Category
Business Administration
Identifiers
URN: urn:nbn:se:uu:diva-552485DOI: 10.1016/j.ibusrev.2025.102401ISI: 001443131400001Scopus ID: 2-s2.0-85216298274OAI: oai:DiVA.org:uu-552485DiVA, id: diva2:1944717
Available from: 2025-03-14 Created: 2025-03-14 Last updated: 2025-03-28Bibliographically approved
In thesis
1. Take Me Home, Country Roads: Business Networks and Experience in Reshoring
Open this publication in new window or tab >>Take Me Home, Country Roads: Business Networks and Experience in Reshoring
2025 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Defined as the relocation of a firm’s (in-house or outsourced) foreign activities to its home country, reshoring is a valuable strategy to reconfigure the international activities and cope with the changing international business environment. This thesis focuses on how reshoring impacts the firm’s business network and subsequent relocations. For this purpose, I conceive it as a process related to the firms' internationalization, which consists of dis-embedding activities from a host country, re-embedding them domestically, and generating a reshoring experience that shapes subsequent relocation decisions.

This thesis relies on 55 in-depth interviews and 148 survey responses. I collected and analyzed the data through a multiphase research design, sequentially combining qualitative and quantitative methods. It began with an exploratory phase reviewing extant reshoring research (Paper I) and conducting interviews on the topic. As the network dynamics emerged as central, two papers examined the impact of reshoring on the host- (Paper II) and home-country (Paper III) supplier network. The qualitative work also highlighted the role of reshoring experience in shaping subsequent relocation decisions. Consequently, I conducted a survey in the confirmatory phase to test the impact of firms’ international production and reshoring experience on subsequent reshoring, nearshoring, and further offshoring decisions (Paper IV).

The findings display a number of challenges and opportunities presented to firms during the reshoring process, particularly when dis-embedding the activities from the host country and re-embedding them domestically. These mainly relate to the termination and evolution of business relationships with foreign suppliers and the development of new ones with those in the home country. Furthermore, the findings reveal a path dependence between reshoring experience and subsequent reshoring decisions, which are positively related, although reshoring experience does not affect nearshoring and further offshoring decisions. 

This thesis contributes to the reshoring and internationalization literature in three main ways. First, it develops a network and experiential learning view of the reshoring process, untangling how these elements play out in relocations to the home country. Second, it conceives reshoring as a commitment process related to firms' internationalization. In so doing, it shows how some of the central elements explaining international expansion (e.g., relationship commitment and experience) evolve in the reshoring process and the interplay of the home country context with the evolution of commitment in a host country. Third, it advances the concept of a reshoring capability, which has important implications for subsequent reshoring decisions.

Place, publisher, year, edition, pages
Uppsala: Uppsala University, 2025. p. 100
Series
Doctoral thesis / Företagsekonomiska institutionen, Uppsala universitet, ISSN 1103-8454 ; 224
Keywords
Reshoring, Business network, Experience, Internationalization, Reshoring capability
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-552487 (URN)978-91-506-3098-5 (ISBN)
Public defence
2025-05-12, Hörsal 2, Ekonomikum, Kyrkogårdsgatan 10, Uppsala, 10:15 (English)
Opponent
Supervisors
Available from: 2025-04-11 Created: 2025-03-14 Last updated: 2025-04-11

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Citation style
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