Reshoring for sustainability: a cross-country multiple-case study

Aims In the last decades, companies have extensively offshored their production activities to emerging economies. The globalisation of manufacturing operations has resulted in reduced prices for products and services, but has also determined various challenges, including negative environmental impacts and labour issues. More recently, organizations are increasingly prioritising other considerations over traditional cost advantages, also adopting reshoring strategies driven by sustainability intentions. In this work, we aim to investigate the relationship between reshoring and the triple bottom line of sustainability. Methods/Approach We adopt the behavioural theory of the firm and conduct a multiple-case study involving eight companies that have taken different sustainability measures in their reshoring operations. Results/Findings Our findings indicate that reshoring is a corrective action implemented when failing to attain the desired level of sustainability performance during the offshoring, aiming to close the gap between realized and aspirational performance. Also, relationship between sustainability and reshoring decisions can take various forms, depending on the level of sustainability aspirations. Relevance/Implications for practitioners and academics Our findings contribute to both the behavioural theory of the firm and reshoring by shifting the focus from financial performance, which has been thoroughly examined, to the less frequently investigated topic of sustainability performance.