Archivio tag per: long term

Coming back home again: the reshoring decision

Reading time: 6 minutes

09 Mar
09/03/2017
Foto del profilo di Olga Annushkina

by Olga Annushkina

SDA Professor of Strategic and Entrepreneurial Management

Offshoring and subsequent “coming back home again” reshoring choices by multinationals are once again raising doubts about the quality of long-term strategic decisions in both larger and smaller firms. A decision to outsource and relocate production in China and then, following the state incentives, to transfer it back to the US or Europe might be interpreted as a sign of excellent organizational flexibility, if we don’t take into account all the implicit and explicit costs related to the implementation of such important alterations to the firm’s operations and, not the least, the impact such decisions have on a firm’s reputation, research and development capabilities, perceived quality of its products and services.

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