A Multi-Theory Framework for Understanding the Reshoring Decision

Recently firms have been reconsidering offshoring decisions, and have been reshoring activities back from offshore locations to domestic locations. The aim of this paper is to develop a framework for understanding location and governance choice in the reshoring decision. Employing the eclectic paradigm, the resource-based view and transaction cost economics as a theoretical basis, this research highlights the value of integrating location-specific factors with process- and firm-specific factors for understanding location and governance choice in the reshoring decision. Moreover, the framework highlights the value of understanding the interaction of the location-, firm- and process-specific factors on the reshoring decision.