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1 – 10 of 21Enrico Baraldi, Francesco Ciabuschi, Luciano Fratocchi, Daniel Pedroletti and Antonio Picciotti
Reshoring implies the reconfiguration of supply networks. Focusing on the specific case of a born-offshored firm that engaged in reshoring of outsourced activities, this study…
Abstract
Purpose
Reshoring implies the reconfiguration of supply networks. Focusing on the specific case of a born-offshored firm that engaged in reshoring of outsourced activities, this study aims to analyse how initial key suppliers in the home country can help the reshoring firm to organize a new supply network.
Design/methodology/approach
The research is qualitative and based on a single exploratory case study. The data was collected from multiple primary and secondary sources, and using different techniques, such as in-depth interviews, direct observation and network pictures.
Findings
The study provides insights on how an initial key supplier can enable its customers’ reshoring in the home country. Specifically, the authors identify 10 roles played by a key supplier. The results also identify supply network formation as an essential component of the reshoring process.
Originality/value
This paper provides unique contributions. Firstly, it presents the specific and under-explored case of a born-offshored firm engaged in outsourced reshoring; secondly, it sheds light on the roles that key suppliers may play for the reshoring process; thirdly, it explores the formation of business relationships in the context of reshoring. In essence, the paper contributes to the reshoring literature, by stressing the importance of supply network formation in the reshoring process and by identifying the multiplicity of roles that key suppliers can play when implementing reshoring, and to the industrial marketing and purchasing (IMP) literature, by showing how relationships and networks develop during reshoring, a phenomenon so far understudied by IMP scholars.
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Enrico Baraldi, Francesco Ciabuschi, Olof Lindahl, Andrea Perna and Gian Luca Gregori
The purpose of this paper is to explore two specific areas pertaining to industrial networks and international business (IB). First, the authors look at how business relationships…
Abstract
Purpose
The purpose of this paper is to explore two specific areas pertaining to industrial networks and international business (IB). First, the authors look at how business relationships influence the internationalization in time, from the establishment of the first subsidiary in a foreign market to the following ones, and in space, that is, across different markets. Second, the authors investigate how an increasing external network dependence of subsidiaries in their internationalization may cause a detachment of a subsidiary from the mother company as its knowledge becomes insufficient to guide a subsidiary’s internationalization.
Design/methodology/approach
This paper utilizes an exploratory, longitudinal, single-case study of Loccioni – a manufacturer of measuring and automatic control systems for industrial customers – to illustrate the specific dynamics of the influences of industrial networks on the internationalization of subsidiaries.
Findings
The case study helps to elucidate the roles, entailing also free will and own initiative, of small suppliers’ subsidiaries which operate inside several global factories, and how “surfing” on many different global factories, by means of several local subsidiaries, actually supports these suppliers’ own international developments. This notion adds to our understanding of the global factory phenomenon a supplier focus that stresses how the role of suppliers is not merely that of being passive recipients of activities and directions from a focal orchestrating firm, but can also be that of initiative-takers themselves.
Originality/value
The paper contributes to the IMP tradition by providing a multi-layered and geographically more fine-grained view of the network embedding companies that operate on internationalized markets. This paper thereby sheds light on a less investigated area of research within the IMP tradition: the link between internationalization in different countries and the interconnectedness between the industrial networks spanning these countries. At the same time, this paper contributes to IB theories by showing how a late-internationalizing SME can enter highly international markets by “plugging into” several established “Global Factories” as a way to exploit further opportunities for international expansion.
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Diego Bellini, Serena Cubico, Giuseppe Favretto, Stefano A. Noventa, Piermatteo Ardolino, Giovanna Gianesini, Francesco Ciabuschi, Joao Leitao and Ajay K. Jain
This paper aims to propose an explorative metamodel of the key organizational competences management and presents a Web-based tool (Co.S.M.O.© Competences Software Management for…
Abstract
Purpose
This paper aims to propose an explorative metamodel of the key organizational competences management and presents a Web-based tool (Co.S.M.O.© Competences Software Management for Organizations) for all-around assessment of the identified competences.
Design/methodology/approach
Building on the Great Eight Competencies Model- GEC, the European Qualifications Framework-EQF and focus group feedback, an online questionnaire was developed to manage the key organizational competences and to adapt the competence metamodel to the Italian context.
Findings
The competence metamodel described in this study and its newly designed tool (software with online questionnaire) could be used at the organizational level to improve productivity and efficiency by allowing an easy identification of key organizational competences and facilitating their acquisition and sharing.
Research limitations/implications
Currently, the metamodel is mainly theoretical and the software sustained only a partial validation.
Practical implications
The developed tool is a dynamic, easy to use and interactive Web-based software useful for managing the competences in both for-profit and not-for-profit organizations.
Social implications
European official documents invite companies and institutions to work together and share human capital: the European Qualifications Framework-EQF, at the base of this model, facilitates a common organizational language for human resources management.
Originality/value
Managerial competence literature indicates that a comprehensive model capturing a link between the EQF and a managerial competence model has not yet been considered in the literature.
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Francesco Ciabuschi, Olof Lindahl, Paolo Barbieri and Luciano Fratocchi
This paper aims to theorize on the internationalization process model to explain cases of manufacturing reshoring as decisions taken to manage risk when internationalizing.
Abstract
Purpose
This paper aims to theorize on the internationalization process model to explain cases of manufacturing reshoring as decisions taken to manage risk when internationalizing.
Design/methodology/approach
The paper is of a conceptual nature. Building on the logic of the internationalization process model, the authors extend previous work by focusing on firms’ risk perception (determined by commitment, knowledge and uncertainty as key variables) to explain also reshoring decisions.
Findings
Four propositions were developed, concerning the likelihood of firms to make manufacturing reshoring decisions. The first two propositions deal with the effects of new risk contingencies, and the other two refer specifically to the effects of managerial perceptions of three different typologies of risk, namely, host-country, home-country and reshoring-process specific risk.
Originality/value
While reshoring has been discussed mainly on the basis of economic arguments, this paper offers an alternative, behavioural view of this phenomenon as a strategic risk-management process. Therefore, it offers initial steps to theorize about reshoring from a risk-management perspective and, in doing so, opens up a number of avenues for future research.
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Paolo Barbieri, Francesco Ciabuschi, Luciano Fratocchi and Matteo Vignoli
The aim of this paper is to analyze and classify research that has been conducted on manufacturing reshoring, i.e. the decision to bring back to the home country production…
Abstract
Purpose
The aim of this paper is to analyze and classify research that has been conducted on manufacturing reshoring, i.e. the decision to bring back to the home country production activities earlier offshored, independently of the governance mode (insourcing vs outsourcing). Consequently, the paper also aims at providing avenues for future research and to highlight the distinct value of studying manufacturing reshoring either per se or in combination with other constructs of the international business tradition.
Design/methodology/approach
A set of 57 carefully selected articles on manufacturing reshoring published in international journals or books indexed on Scopus in the past 10 years was systematically analyzed based on the “5Ws and 1H” (who-what-where-when-why and how) set of questions.
Findings
The authors’ work shows a certain convergence among authors regarding what reshoring is and what its key features and motivations are. In contrast, other related aspects, such as the decision-making and implementation processes, are comparatively less understood.
Research limitations/implications
As manufacturing reshoring is a “recent” topic, for some of its aspects, only exploratory research is available to date, limiting the authors’ possibility to either characterize it in a more exhaustive way or highlight well-established patterns.
Practical implications
The paper demonstrates that studying reshoring will indeed contribute to expanding our understanding of internationalization processes and strategies in general and of production internationalization specifically. While past studies have argued that the learning derived from international experience would permit firms to overcome their unfamiliarity with new business environments, reshoring might show that this outcome is not necessarily certain. Rather, firms might not be able to overcome obstacles because of internationalization or they might realize that attempting to do so is not desirable, e.g. because of excessive risk or changes in the firm’s strategic priorities.
Social implications
From a societal point of view, the present research underlines that reshoring can be part of that re-industrialization policy that many Western countries include in their economic agenda – yet, its impact on employment should not be overestimated, as often relocation is only in regard to some product lines. At the same time, there might be an intimate relationship between reshoring and the various forms of technological innovations applied to manufacturing – which has become popularly labeled as “Industry 4.0”.
Originality/value
Literature reviews proposed until now usually paid almost exclusive attention to motivations driving this phenomenon. This paper offers a broader and more comprehensive examination of the extant knowledge of manufacturing reshoring and identifies the main unresolved issues and knowledge gaps, which future research should investigate.
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Enrico Baraldi, Francesco Ciabuschi and Luciano Fratocchi
Antibiotics shortages have become an increasingly common problem in Europe because of several reasons, including the offshoring of the production of active pharmaceutical…
Abstract
Purpose
Antibiotics shortages have become an increasingly common problem in Europe because of several reasons, including the offshoring of the production of active pharmaceutical ingredients for many of these products to low production cost countries, such as China and India. The problem has deteriorated because of the Covid-19 crisis that has put most global value chains (GVCs) under great stress. This situation has boosted extensive discussions among academics, practitioners and policymakers on possible changes to the configuration of GVCs. This paper aims to focus specifically on antibiotics supply chains from the perspective of a small country (Sweden), and analyse the pros and cons of backshoring and nearshoring alternatives, as a means to reduce drug shortages.
Design/methodology/approach
This work adopts a systemic perspective to capture the implications of reshoring for the different stakeholders involved in the antibiotics field. The present meso-analysis, focusing at the industry level, is based on multiple sources of primary data collected between 2014 and 2021, including participation in policy-related projects and interviews with over 100 representatives of key stakeholders in the antibiotics field.
Findings
This paper shows how reshoring can address the problems of drug shortages and reduce availability risk in antibiotics’ GVCs. However, the authors show that no simple and best solution exists because both alternatives of reshoring, i.e. backshoring and nearshoring, entail pros and cons for different stakeholders. The authors conclude with implications for policymakers and managers.
Research limitations/implications
The analysis of pros and cons of both backshoring and nearshoring for various stakeholders offers relevant implications for research on operations and supply management, international business and economics/political science.
Originality/value
This paper looks at reshoring as a policy-driven decision and provides an innovative systemic perspective to analyse the implications for different stakeholders of two reshoring options concerning the antibiotics supply chain.
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Francesco Ciabuschi, Henrik Dellestrand and Amalia C. Nilsson
As markets become increasingly competitive, it is important for multinational corporations to generate value. Both headquarters and subsidiaries are responsible for contributing…
Abstract
Purpose
As markets become increasingly competitive, it is important for multinational corporations to generate value. Both headquarters and subsidiaries are responsible for contributing to value generation, albeit they may do so in different ways. This builds on the notion from the literature that it is possible to discern two separate concepts that relate to the generation of value, namely, value creation and value added. These concepts are often used interchangeably, without a clear distinction what they de facto reflect or what the underlying mechanisms of value creation and value added are.
Methodology/approach
Based on a set of assumptions regarding headquarters–subsidiary relations conceptual arguments related to value generation are developed.
Research implications
Teasing out the differences between the concepts becomes important as it leads to a fuller understanding of what a headquarters do in different situations and of what a headquarters–subsidiary relationship entails for value generation.
Originality/value
In this chapter, it is argued that value-adding activities tend to be conducted by a headquarters, but are dependent on varying knowledge situations of headquarters, while the value creation process tends to take place at the subsidiary level.
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Francesco Ciabuschi and Oscar Martín Martín
The purpose of this paper is to focus on the effect that knowledge‐ambiguous innovations have on the subsidiary performance of multinational corporations (MNCs). Specifically, the…
Abstract
Purpose
The purpose of this paper is to focus on the effect that knowledge‐ambiguous innovations have on the subsidiary performance of multinational corporations (MNCs). Specifically, the paper sheds light on the relationship between knowledge ambiguity in the innovation context, in terms of tacitness, complexity and specificity, and innovation‐related subsidiary performance.
Design/methodology/approach
The authors build a model integrating these three main components of ambiguous knowledge and test a set of hypotheses on a sample of 85 innovation projects developed by subsidiaries of MNCs. Data were collected through personal interviews and a partial least squares (PLS) technique was used to analyze the data.
Findings
Knowledge ambiguity affects performance in different ways. None of the three components of knowledge ambiguity influences all areas of subsidiary activities (i.e. market, coordination, efficiency, and R&D). Moreover, it was found that innovations characterized by knowledge tacitness are detrimental to market performance.
Research limitations/implications
The limitations to this research are its cross‐sectional nature and the use of perceptual indicators to measure the constructs. The major research implication is the importance of distinguishing between different dimensions of knowledge ambiguity in the innovation context.
Practical implications
During innovation development, it is important to understand the implications and control aspects of knowledge ambiguity. This ambiguity not only impacts subsidiary performance but also indirectly influences the decisions and strategies of knowledge transfer.
Originality/value
The paper contributes to the strategy and innovation management literature by suggesting that ambiguous knowledge does not always enhance performance. The paper fills a gap in the literature by addressing the impact on the subsidiary performance of MNCs by the three key components of knowledge ambiguity in innovations.
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Francesco Ciabuschi and Oscar Martín Martín
Purpose – To explore the influence of autonomy on subsidiaries' development and transfer intensities and their interrelationship.Methodology/approach – We develop a theoretical…
Abstract
Purpose – To explore the influence of autonomy on subsidiaries' development and transfer intensities and their interrelationship.
Methodology/approach – We develop a theoretical model that we test on a sample of 85 innovation projects developed in 63 subsidiaries in 14 countries. The data were collected by personal interviews and analysed using the Partial Least Squares technique.
Findings – Autonomy is an important driver of subsidiaries' innovation intensity although, surprisingly, we find no influence on transfer intensity. We confirm the positive relationship between subsidiary innovativeness and its role as provider of new competence to sister units within the multinational enterprise (MNE).
Research limitations/implications – In line with previous studies, we can say that autonomy is a desirable result of subsidiary evolution. We can also suggest that overall subsidiary autonomy is beneficial not just to the subsidiary but to the rest of the MNE, since the more the subsidiary innovates the more related competence will be transferred. In other words, innovation efforts at subsidiary level are critical to sustain MNEs' overall competitive advantage.
Practical implications – First, it seems that the more a subsidiary's innovativeness is fostered, the more transfers to other units will occur. Second, we have seen how autonomy is beneficial to the innovative activity of the subsidiary and that it does not seem to harm transfer intensity.
Originality/value – Following studies that point out the potential trade-off between the output of development and transfer activities by subsidiaries, our research contributes by empirically testing the relationship between the intensities of subsidiary innovation development and transfer.
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Francesco Ciabuschi and Oscar Martín Martín
Purpose – To investigate the effects of headquarters (HQ) involvement in innovation development and transfer at unit level.Methodology/approach – We develop a theoretical model…
Abstract
Purpose – To investigate the effects of headquarters (HQ) involvement in innovation development and transfer at unit level.
Methodology/approach – We develop a theoretical model that we test on a sample of 71 innovations belonging to 52 business units located throughout Europe, Asia, and the USA. The data were collected by personal interviews and analyzed using the partial least squares (PLS) technique.
Findings – While HQ involvement in innovation development enhances the effects on the unit engaged in the development, it is detrimental to performance of the innovation transfer process. We also find higher HQ involvement in the innovation development process and stronger innovation impact on the subsidiary to be associated with higher HQ involvement in the transfer process.
Research limitations/implications – There is a significant beneficial effect of HQ involvement in the development process in terms of the increased impact of the innovation in the unit, and a harmful influence on the specific performance associated to the transfer process.
Practical implications – HQs will benefit from improved performance if they become more involved in important innovations while limiting their direct engagement in the transfer of “marginal” innovations. It might also be wise for the HQs to rethink their involvement at unit level by separating the development process from the transfer process in their decision framework.
Originality/value of the paper – This is one of the first attempts to empirically connect the processes of innovation development and transfer at unit level in MNCs and to show the implications of HQ involvement in innovation projects at subsidiary level.