Entry modes in reshoring strategies: An empirical analysis
Di Mauro C
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The Entry Mode (EM) choice is a fundamental issue in reshoring initiatives. Despite several authors have studied the determinants of offshoring EM, no study has investigated so far the factors affecting the reshoring EM. The purpose of this paper is to examine which factors influence this critical choice. By adopting a multi-level approach, our investigation includes industry-, country-, firm- and project-specific variables, besides the EM adopted in the offshore location. Using a sample of 677 cross-industry and cross-country reshoring initiatives, we found that offshoring EM significantly constrains the subsequent reshoring EM. Furthermore, reshoring EM is explained by industry- and project-specific factors, while offshoring EM is influenced by a broader set of industry-, country-, and firm-specific factors. This study fills a gap in the reshoring literature by analyzing influential factors in EM choice and by offering a comparison between the determinants of offshoring and reshoring EM.