Reshoring concepts: Definitions and a structured bibliometric review

Siddiqui, Muhammad Farooq; Khalid, Warda; Arsalan, Muhammad Article Reshoring concepts: Definitionsand a structured bibliometric review Modern Supply Chain Research and Applications Provided in Cooperation with: Emerald Publishing Limited Suggested Citation: Siddiqui, Muhammad Farooq; Khalid, Warda; Arsalan, Muhammad (2024) : Reshoring concepts: Definitionsand a structured bibliometric review, Modern Supply Chain Research and Applications, ISSN 2631-3871, Emerald, Bingley, Vol. 6, Iss. 4, pp. 393-410, https://doi.org/10.1108/MSCRA-04-2024-0012 This Version is available at: https://hdl.handle.net/10419/314933 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Reshoring concepts: definitions and a structured bibliometric review Muhammad Farooq Siddiqui, Warda Khalid and Muhammad Arsalan Department of Management, Institute of Business Administration Karachi, Karachi, Pakistan Abstract Purpose –The aim of this paper is to clearly mark the clusters in the related literature using bibliometric analysis and draw useful implications for the academic research purposes especially in the stream of Supply Chain Management (SCM). Design/methodology/approach –By employing rigorous selection criteria, sample articles were selected for synthesizing and conducting a bibliometric analysis. This paper tries to identify the significance of the concept of reshoring with the aspect of SCM, operations, logistics etc. Starting from sample selection, systematic selection criteria has been used to generate the database, using Scopus. The sample size was 184. Using VOSViewer, statistical and graphical representations were generated for clusters in the literature that will be useful for judging the trends of research under shoring concepts. Findings –Findings show that unclear difference compared to other supply chain concepts obstructs further theory development within reshoring concepts. To address this challenge, the review categorizes themes and defines boundaries. Based on the analysis findings, this paper advocates for additional research in areas that are crucial but have received limited or no attention. Specifically, there is a need for action research on motivations, governance modes, and location selection concerning reshoring decisions. Research limitations/implications –This review has a few limitations. The absence of publications in other language, than English, may result in a significant loss of knowledge. This research paper cited a few relevant publications in the form of conference papers, industry reports, books, and book chapters. Nonetheless, they were excluded from the organized bibliometric audit. To further advance the knowledge in this field, exploratory longitudinal case studies will bring to focus the changes on manufacturing strategies using the shoring and reshoring stages. Practical implications –A current example of this is a French company named Stil (Terzian, 2020) which brought its glass thermometer production back to its home after the unexpected closure of its suppliers from China. Another Italian firm has restarted production of disposal bio-degradable face masks after 15 years to compete with low-cost alternatives from China (Greco, 2020). Reshoring concepts are now under consideration of organizations including Boeing, Bosch, Phillips and more. Originality/value –To the best of our knowledge, this represents one of the earliest efforts to conceptualize and define reshoring concepts, aiming to distinguish them from one another appropriately. To accomplish this, the earlier demarcated clusters precede this section’s classification of reshoring concepts illustrated in Table 8. Based on the synthesis of definitions and thematic clusters above, we have concluded the literature review in this emerging field. It is intended to contribute to theory development and practitioner support in reshoring decisions by clarifying the dimensions. Keywords Offshoring, Reshoring, Close shoring Paper type Research paper Introduction De-internationalization can result from back-shoring/re-shoring (migrating to the nation of beginning) or close shoring (moving to a close by country) or from leaving specific Modern Supply Chain Research and Applications 393 © Muhammad Farooq Siddiqui, Warda Khalid and Muhammad Arsalan. Published in Modern Supply Chain Research and Applications. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/2631-3871.htm Received 1 May 2024 Revised 20 June 2024 14 August 2024 31 August 2024 Accepted 18 September 2024 Modern Supply Chain Research and Applications Vol. 6 No. 4, 2024 pp. 393-410 Emerald Publishing Limited 2631-3871 DOI 10.1108/MSCRA-04-2024-0012 nations or locales for different reasons. The company may reach a point at which internationalization ceases, either temporarily or permanently. The idea of deinternationalization was earliest advanced by Welch and Luostarinen, (2017),who theorized that once a firm had internationalized, there was no assurance that it would continue to grow transnational activities in the future. Academics have studied reshoring concepts and its manifestations under numerous tags such as de-internationalization, exit decision, foreign or international divestment, international market exit, export market withdrawal, reverse internationalization, back shoring, etc. These all discuss actions of a related nature in the firm’s transnational trajectory, whether it is looking at downscaling its overseas setups, changing its modes of operation, re-focusing on the home market, or bringing manufacturing back home. The current research work hardly portrays any trends regarding the evolution of specific parameters in literature pertaining to reshoring. There aren’t many systematic reviews of the literature within the field, and those that do exist are limited by their lack of in-depth analysis and coverage. This study employs methodological advancements to examine the reshoring discipline’s literature by clearly identifying clusters. Reshoring concepts The problem is compounded by the considerable number of options related to each of these arrangements. For instance, considering only divestment, terminating a subsidiary does not certainly mean reshoring of a multinational enterprise (MNE), because the firm may have opened other subsidiaries in other countries. In addition, a firm may close a production subsidiary, but leave a commercial agency or external brokers or representatives intact, which would also be measured an act of reshoring, but without leaving the foreign market. The transferal of a subsidiary from a distant country to a proximate country may have modest effect in terms of the sum of countries in which the MNE operates, but depending on the country or countries withdrawn, it may also mean nearshoring from worldwide (operating on several continents) to regional (operating on a single continent). Thus, there is a wide-ranging variation of reshoring concepts, with very dissimilar influences on the nature, scope, and intensity of the firm’s intercontinental activities as shown in Table 1. Author Definition Boffelli et al. (2020) a. Location decision b. Change in ownership c. Reversal of the offshoring decision, so it involves only previously offshored activities Sequeira and Hilletofth (2019),Per Hilletofth et al. (2019) Process whereby manufacturing is moved back to native land Per Hilletofth et al. (2019) When companies decide to move manufacturing back to their home country M€ uller and Voigt (2017) The returning of procurement and production from abroad to home country White and Borchers (2016) Reversal of offshoring Arik (2013) In the US context, this means the relocation of the business operation to the US from emerging markets Source(s): Authors’ own creation Table 1. Variety of reshoring concepts MSCRA 6,4 394 Classification of reshoring concepts An organization will take different relocation strategies such as insourcing and reshoring largely dependent on if a change happened in the supply market and/or its channel. Relocation aspect is viewed as a change between different strategies meaning that an organization can opt for another supply strategy which they believe better suits the market conditions. This paper aims to holistically explore what has been published concerning reshoring concepts which will be crucial in guiding towards future research. Hence, the research objectives are (1) How are reshoring concepts articles clustered? (2) What are the emerging research aspects? (3) Which journals, articles, and host nations that are most influential in the research of reshoring concepts? It is imperative to understand the concept of reshoring, offshoring, back shoring, and its relevance to the aspect of supply management. As the world still grapples with COVID-19, it is being witnessed that the pandemic era will have a major impact economically, nationally, and internationally. Pandemics are having an impact on organizational structure concerning operations and supply chains (Samson, 2020). Many organizations have witnessed disruptions to their supply chains during the pandemic lockdowns due to their dependence on offshored supplies (Strange, 2020). Countries are now making strategic reshoring decisions for pharmaceutical products as well as vital aspects of industrial supply chains like automobiles and chemicals whose supply disruptions can adversely affect GDP. In the given context, reshoring concepts are at the heart of entrepreneurial decision making to bring back manufacturing facilities toward the home country or its region. A current example of this is a French company named Stil (Terzian, 2020) which brought back its glass thermometer production back to its home after unexpected closure of its suppliers from China. Another Italian firm has restarted production of disposal bio-degradable face masks after 15 years to compete with low-cost alternatives from China (Greco, 2020). Reshoring concepts are now under consideration of organizations including Boeing, Bosch, Phillips and more. Reshoring can be both in-house and outsourced. As part of the reshoring agenda, an organization may move its manufacturing facility back to headquarter or it might only bring back production still outsourced to another collaborative manufacturer in its home country (Wan et al., 2019). Since the drivers behind reshoring decisions are resource competencies, structural changes, quality, innovation and overall supply chain responsiveness, reshoring concepts are of utmost interest for organizational leadership (Van den Bossche et al., 2014). Literature review In the last few decades, only a handful of literature reviews have been written on reshoring concepts. Out of these nineteen literary reviews, 5 are traditional/conventional literature reviews leaving the systematic/bibliometric reviews at 14. Majority of the authors have employed content-analysis-based framework for classifying and comparing a sample of empirical research publications and provided a brief overview of the use of empirical research methods in the reshoring domain. Content analysis and descriptive analysis emerged as the most popular modes followed by segmented keyword network analysis and co-word analysis. Despite the varied sample sizes used, as shown in Table 2, only Saravanan et al., (2022),da Fonseca and da Rocha (2022) have mentioned using VOSViewer software to bifurcate clusters and demarcate themes. Modern Supply Chain Research and Applications 395 Saravanan et al. (2022) identified the current research trends and potential research avenues, by conducting an analysis of the COVID-19-related supply chain literature. For the entire corpus and the top three contributing journals (Sustainability, International Journal of Logistics Management, and Operations Management Research), bibliometric analysis (also known as a keyword co-occurrence network) and text mining tools (also known as N-gram analysis and topic modeling) are utilized in order to identify the most frequently discussed topics in the literature. The distinct topics in the corpus and journals can be identified using TF-IDF. In order to identify research trends and opportunities, 574 papers published up until the first semester of 2022 were gathered from the Scopus database. The application of digitalization to achieve resilience and sustainability, the utilization of additive manufacturing during the pandemic, the investigation of food supply chains, and the creation of supply chain decision models to combat the pandemic were the four topics that were considered by the keyword network. Topic modeling and segmented keyword network analysis were also carried out for the top three contributors. Even though the research concentrations for each journal are drawn from both analyses, the keyword network typically provides a more general scope, whereas the topic modeling provides more specific topics. The effects of the pandemic on plasma supply chains, cattle supply chains, and reshoring decisions, to name a few, were also revealed by the TF-IDF scores. Future research avenues are discussed based on the findings. As a result, supply chain practitioners and researchers will be able to identify supply chain advancements, literature gaps, and potential research avenues with the assistance of this study. da Fonseca and da Rocha (2022) presented the topics of export withdrawal, subsidiary divestment, and back shoring or reshoring through a comprehensive review of research on de-internationalization. In the beginning, the main strands related to de-internationalization were confirmed using a bibliometric technique (co-word analysis) on keywords from articles and book chapters published between 1980 and 2020. The bibliometric analysis was then used in the study to identify the most recent trends within each theme. The literature was broken up into three groups that talked about the same thing—firms cutting their commitment to other countries—but used different but related terms. For each of the clusters, the effects of de-internationalization research were looked at, issues that required more investigation were mapped, and suggestions were made for future research. By defining the conceptual boundaries of the de-internationalization phenomenon and mapping its various manifestations within a single theoretical domain, the study employs a novel approach to gaining a broader comprehension. The primary objective of these reviews seems to be simply reporting the quantity of research output without offering recommendations or making judgments and to broaden the scope of analysis to include a thematic layer. No current publication has examined the productivity of scholars despite the noticeable increase in the number of works published related to this emerging field as visualized in Figure 1. It is anticipated that this study’s findings will fill the existing knowledge gap and provide insight into the direction that reshoring research will take in the future. Sample size Review papers 0–100 56% 101–200 25% >200 19% Source(s): Authors’ own creation Table 2. Distribution of sample sizes in reviews MSCRA 6,4 396 For further extensive information on contributions to these literary reviews, most prolific authors were found to be Fratocchi L. Di Stefano C, Vignoli M. and Sartor M. Each of these authors has been affiliated to more than one publication in the field. Additionally, to see the area expertise of the journals publishing the bibliometric reviews, refer to Table 3.Journal of Global Operations and Strategic Sourcing, Operations Management Research, Progress in International Business Research and Sustainability (Switzerland) are at par with 2 literature reviews each. However, none of these journals is ranked A or B in ABDC ratings despite the reviews being Scopus-indexed. On the other hand, the goal of this paper is to examine the literature in the field of reshoring with respect to supply network management. The current paper goes two steps further than the majority of other literature reviews to uncover complex data relationships. In order to reveal important literary trends, it first compares all major data categories against time, geographical regions, and combined time and geographical regions. Second, it provides insight that cannot be obtained from earlier sets of analysis by providing an account of cross tabulations among the various data categories. The remainder of the paper is laid out as follows: This content analysis’s procedure is described in the Methodology section. The application of research designs and popular research methods to study reshoring concepts are also covered. Trends in reshoring publication in terms of region, most prolific authors, universities, preferred journals, and Source(s): Authors’ own creation 1 1 3 3 3 2 2 3 2015 2016 2017 2018 2019 2020 2021 2022 Journals A B C NL Total Journal of Global Operations and Strategic Sourcing 11% 11% Operations Management Research 11% 11% Progress in International Business Research 11% 11% Sustainability (Switzerland) 11% 11% Acta IMEKO 5% 5% Advances in Transdisciplinary Engineering 5% 5% Annual Reviews in Control 5% 5% Development Policy Review 5% 5% Economies 5% 5% European Business Review 5% 5% International Journal of Logistics Management 5% 5% Journal of Purchasing and Supply Management 5% 5% Management Review Quarterly 5% 5% Production Engineering 5% 5% World Review of Intermodal Transportation Research 5% 5% Grand Total 11% 11% 26% 53% 100% Source(s): Authors’ own creation Figure 1. Publication trend of LRs by year Table 3. Cross-tabulation between contributing journals and respective ABDC ratings Modern Supply Chain Research and Applications 397 journal publication trend are presented. The major research findings are discussed. The conclusion and opportunities for future research are presented before the limitations of this research work are discussed. Methodology By extant literature review of bibliometric analysis published in this area, the search string for this paper was drawn basis the most commonly searched keywords. To begin, keyword search of all literature reviews was coded to focus on the most preferred combinations as shown in Figure 2. Although the theory building in reshoring concepts seems to be on nascent stages, this grounded-ness into existing research work circumvents any subjectivity in the keyword string so that all relevant papers are part of the final database. A systematized literature review is undertaken to synopsize the current maturity level of theory. A structured method was used for retrieving and selecting the studies for this review. The following subsections outline the approach adopted for finding, screening and studying the articles and sample characteristics. Finding the articles There are, debatably, three major abstract and citation databases: Google Scholar, Scopus, and the Web of Science. Google Scholar was omitted because of its low data quality, which advances questions about its aptness for research. Meanwhile, Scopus has a wider reportage than the Web of Science, but the latter offers access to older sources. Since we are studying a recent phenomenon, the access to older sources offered by the Web of Science database is not a benefit. Therefore, Scopus was concentrated. To uphold the reliability of practicality of the literature reviewed, the search was limited to articles published in peer reviewed journals only. Only English sources were included in our analysis given the language limitations of the author. Scopus was queried using the following string. (TITLE-ABS-KEY (reshor*) OR TITLE-ABS-KEY (backshor*) OR TITLE-ABS-KEY (back-shor*) OR TITLE-ABS-KEY (re-shor*) OR TITLE-ABS-KEY (back-reshor*) OR TITLE-ABS-KEY (backsourcing) OR TITLE-ABS-KEY (“back reshor*”) OR TITLE-ABS-KEY (on-shor*) AND TITLEABS-KEY (“Supply Chain”)) AND (LIMIT-TO (LANGUAGE , “English”)) AND (LIMIT-TO (SRCTYPE , “j”)) This step retrieved 205 publications. Screening the articles At this stage, articles were included or excluded based on the abstract. Any article that covered aspects of reshoring concepts from a relevant subject area was retained. The inclusion-exclusion criteria are presented in Table 4. Figure 2. Tree map for search string keywords MSCRA 6,4 398 This procedure based was required since the literature on reshoring concepts is extremely expansive and covers several diverse areas. The screening condensed the relevant articles to 148. The high number of unrelated articles is validated seen our all-encompassing search terms which included several articles that did not explicitly integrate the reshoring concepts in a business context. Using numerous channels for retrieving the full articles, i.e. database subscription/access available, these 148 articles were evaluated as the final sample. This is summarized in Figure 3. Subject area Number of results Criteria Business, Management and Accounting 100 Included Social Sciences 47 Decision Sciences 47 Economics, Econometrics and Finance 40 Engineering 42 Excluded Environmental Science 30 Computer Science 23 Energy 17 Agricultural and Biological Sciences 16 Medicine 8 Mathematics 7 Chemistry 5 Materials Science 4 Chemical Engineering 4 Pharmacology, Toxicology and Pharmaceutics 3 Multidisciplinary 3 Physics and Astronomy 2 Health Professions 2 Earth and Planetary Sciences 2 Psychology 1 Nursing 1 Biochemistry, Genetics and Molecular Biology 1 Arts and Humanities 1 Source(s): Authors’ own creation Source(s): Authors’ own creation Keywords search in Scopus • Data retrieval with advanced query string (313) • Limiting to journal articles (219) • Limiting to English (205) Subject area review • Limiting to business, management, acccounting, social sciences, decision sciences, economics, econometrics and finance (148) Full-text review • Final sample selection after reading all the abstracts (148) Table 4. Inclusion/exclusion criteria Figure 3. Selection criteria for relevant articles Modern Supply Chain Research and Applications 399 Analyzing the articles Tool selection for bibliometric analysis. Two of the most well-known and promising domain visualization software packages were considered for this review as shown in Table 5. VOS viewer and Bibliometrix are both capable of providing domain visualization, but each has its own set of requirements and capabilities. VOS viewer is more user-friendly, but it sacrifices limited alternatives to its preprogrammed functions and requires repeated analysis due to its inability to combine data from multiple sources for simplicity, adaptability, and responsiveness to user needs. Bibliometrix is more robust and adaptable because it can be customized more easily by users and can (1) perform analyses with files from multiple databases (2) accept files from the Cochrane Database of Systematic Reviews (CDSR) and RISmed (3) provide exclusive analyses for a price that includes a steeper programming learning curve It could be argued that each addresses a distinct need. VOSviewer might be all that a given client or set of clients need. However, given that a particular skill is required, it might end up Item VOSviewer Bibliometrix Software requirements Linux, Windows or MacOS Linux, Windows or MacOS Install requirements Download the appropriate version for your operating system Requires installation of R language IDE and then of the Bibliometrix package Requires programming knowledge No Yes Ease of use High Low Customizability Low High Import data from (file formats accepted) SCOPUS (CSV), Clarivate Analytics Web of Science (Plaintext or tabdelimited), PubMed/Medline (MEDLINE) and Dimensions (CSV) SCOPUS (BibTeX or CSV), Clarivate Analytics Web of Science (Plaintext, BibTeX or EndNote), PubMed/ Medline (MEDLINE), Cochrane Database of Systematic Reviews (Plaintext) and RISmed (RIS) Load multiple files Yes Yes Data analysis from multiple sources No Yes API support Microsoft Academic, Crossref, Europe PMC, Semantic Scholar, the Open Citations Corpus (OCC), OpenCitations Index of Crossref open DOI-to-DOI citations (COCI), and Wikidata Dimensions, NCBI PubMed and Scopus Exports spreadsheets Yes No Dictionary creation (thesaurus) Yes No Exclusive analysis that only one of the tools delivers Temporal evolution of authors and institutions Impact indexes (H-index, G-index, M-index) Totalization of authors, sources, base document Flexibility and responsiveness to the use High Low Source(s): Adopted from Arruda et al. (2022) Table 5. Pros and cons of bibliometric tools MSCRA 6,4 400 China Reshoring, whether or not regarding back-reshoring or near-reshoring, is a pretty latest phenomenon. (Fel and Griette, 2017;Katada et al., 2023;Liang et al., 2022;Xiang and Yu, 2021) apprehend motives for reshoring to and from China. The authors decide most important reasons for near-reshoring and display that agencies having reshored are successful in terms of product quality, responsiveness among order and delivery, responsiveness among layout and production, and in price control too. Limitations This review has a few limitations. The absence of publications in other language, than English, may result in a significant loss of knowledge. This research paper cited a few relevant publications in the form of conference papers, industry reports, books, and book chapters. Nonetheless, they were excluded in the organized bibliometric audit. To further advance the knowledge in this field, exploratory longitudinal case-studies will bring in focus the changes on manufacturing strategies using the shoring and reshoring stages. For further advancement of application of theory, Di Mauro et al. (2018) conducted a multiple casestudies analysis, searching for common patterns in offshoring and subsequent back shoring initiatives. The academic literature typically examines offshoring and back shoring-related motivations as distinct entities. This separation prevents a more in-depth understanding of the two phenomena and implicitly rejects the idea that back shoring could be a step in the internationalization process of a company. Case research methodology will fill this void by (1) determining whether offshoring and back shoring motivations are related at the firm level (2) determining whether back shoring is the development of the company’s competitive and location strategies or a “failure” of the offshoring initiative. The identification of the primary reasons for offshoring and back shoring is theoretically grounded in this bibliometric literary review. For further theory building, case studies will make it possible to comprehend the connections between the motivations, governance modes and location selection. Hence, future research direction emerges to gain findings from live cases of reshoring. Future research direction This is, to the best of our knowledge, one of the earliest attempts to conceptualize and define reshoring concepts to appropriately distinguish them from one another. To accomplish this, the earlier demarcated clusters precede this section’s classification of reshoring concepts illustrated in Figure 8. Based on the synthesis of definitions and thematic clusters above, we have concluded the literature review in this emerging field. We hope that this significantly furthers the development of reshoring concepts and provides a clear dimension for researchers and practitioners in reshoring decisions. The developing interest in arranging and executing reshoring activities warrants more research in the fundamental underlying concepts. However, there are still a lot of misunderstandings about the terms used due to the conceptual proximity. This study argued that a lack of understanding of reshoring concepts is stifling the field’s progress. We responded by offering a demarcation of the concepts and their definitions derived from the larger body of literature so that the currently confused concepts are labeled according to relevant peculiarities. We then conducted a systematic literature review to acquire a comprehensive understanding of the current state of reshoring research. The field is Modern Supply Chain Research and Applications 407 promising and warrants numerous additional studies. 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About the authors Muhammad Farooq Siddiqui holds an MBA in Finance from Bahria University and has recently completed his MS in Management from the Institute of Business Administration Karachi. With over eight years of experience primarily in research, he currently serves as a Market Initiatives Specialist at Pakistan’s only stock exchange, leveraging his expertise to drive strategic market research and equity research efforts in the financial sector. Muhammad Farooq Siddiqui is the corresponding author and can be contacted at: [email protected] Warda Khalid is a supply chain professional with two years of experience. She holds a bachelor’s degree in accounting and finance from the Institute of Business Administration, Karachi. She is currently a part-time scholar of MS Management at the same university. She is working full-time at a multinational enterprise in the supply chain function. Muhammad Arsalan is Aerospace Engineer from Middle East Technical University. He is currently doing his MS Management from the Institute of Business Administration, Karachi. His main focus is in startups, corporate strategy and supply chain management. With over four years of experience in tech sector working with Motive, Sunbonn and Daraz Alibaba group, he is now working as Lead Sales and Marketing (International Markets) at a major textile export company. For instructions on how to order reprints of this article, please visit our website: www.emeraldgrouppublishing.com/licensing/reprints.htm Or contact us for further details: [email protected] MSCRA 6,4 410