Consequences of sustainable innovations on the reshoring drivers’ framework

Abstract

Purpose – The purpose of this paper is to illustrate how the introduction of new technologies can lead to reconsidering the division of the production process as well as the location of each stage, which may mean reshoring some of them. Design/methodology/approach – The research is based on the analysis of the consequences of new technologies developed and introduced in the market to be applied in the final stage of jeans manufacturing. The paper presents the relevance of this technology, based on an in-depth interview with the representatives of the firm as well as firm and press reports, specialised websites and so on. The information of the reshoring company has been confirmed by its press releases. Findings – The results show that a new technology justifies the reconsideration of the stages in which the production process can be divided and, once this division is considered viable, the drivers for reshoring can become more/less important in the reshoring decision. Practical implications – Firms that previously offshored should consider that new technological processes may lead them to slice their value chains differently, causing them to seek the optimal location for each of the stages. Originality/value – Most of the reshoring literature is based on a static framework where the production process is considered stable and the reasons for reshoring must reside in the change of relevant parameters (such as cost differentials, need to be more flexible, monitoring costs higher than expected, etc.). This paper reveals that changes in the production process, even in traditional sectors, may lead to reshoring/backshoring.