What happens with the host during reshoring? An exploration of the host company's response in China
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 22 August 2023
Issue publication date: 24 October 2023
Abstract
Purpose
Research studies on offshoring and reshoring have predominantly focused on the home company, widely ignoring the offshored company in the host country. The host company's influence and contribution have been unseen. This research explores how the host company responds to the home company's location decisions to maintain the dyadic relationship.
Design/methodology/approach
An exploratory case study in China was conducted to examine the host company's response to reshoring. The case company has two Japanese parent companies that acted for the emergence of reshoring drivers. Primary and secondary data were collected and analysed through thematic analysis. The host company's response strategies to the home company's relocation decisions were identified and explored.
Findings
The findings reveal that four strategies, identified here as being cost control, market expansion, knowledge seeking and relationship bonding, were implemented by the host company. The importance of Industry 4.0 (I4.0) and knowledge transfer is also emphasised within these strategies.
Practical implications
This research identified active and practical strategies conducted by the host company to maintain a cooperative relationship with the home company(ies). Instead of encountering a passive response from the host company, the home company may consider working with the host to overcome difficulties caused by emerging reshoring drivers and create an outcome beneficial to both.
Originality/value
To the authors’ knowledge, this is the first research to study manufacturing reshoring from the perspective of the host company. It provides a new perspective to understanding this phenomenon.
Keywords
Citation
Zhang, L., Lockhart, J. and Macpherson, W. (2023), "What happens with the host during reshoring? An exploration of the host company's response in China", Journal of Manufacturing Technology Management, Vol. 34 No. 7, pp. 1256-1278. https://doi.org/10.1108/JMTM-12-2022-0428
Publisher
:Emerald Publishing Limited
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