Backsourcing As a New Trend Among Companies in the European Union
The global supply chain problem, intensified by events such as the Covid-19 pandemic, natural disasters, geopolitical tensions and trade disputes, has highlighted the need to reassess and reorganize logistics processes. One of the strategic options for enterprises is backsourcing, which enables increasing resilience, improving control and managing risk in response to the global crisis resulting in delays and significant interruptions in supply chains.
The aim of the study is therefore to present the essence, the most important determinants and advantages and disadvantages of the backsourcing process, with particular emphasis on the current experiences of European enterprises in this area. Backsourcing as a new trend among European companies can make it easier to understand the strategic adjustments and consequences associated with this business strategy. The conclusions obtained from such research can help companies, politicians and academics in making informed decisions and developing strategies in line with the current market characteristics and dynamics.
© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
Misztal, P. (2024). Backsourcing as a new trend among companies in the European Union. Journal of Applied Economic Sciences, Volume XIX, Fall, 3(85), 291 – 303. https://doi.org/10.57017/jaes.v19.3(85).05
[1] Akoka, J. & Wattiau, I. (2024). Is/It Backsourcing Decision Making - A Design Science Research Approach. ESSEC Business School Research Paper, 1, 1-37. http://dx.doi.org/10.2139/ssrn.4743166
[2] Ancarani, A., Di Mauro, C. & Mascali, F. (2019). Backshoring strategy and the adoption of Industry 4.0: Evidence from Europe. Journal of World Business, 54(4), 360–371. https://doi.org/10.1016/j.jwb.2019.04.003
[3] Barbieri, P. et al. (2018). What do we know about manufacturing reshoring? Journal of Global Operations and Strategic Sourcing, 11(1), 79–122. https://doi.org/10.1108/JGOSS-02-2017-0004
[4] Benstead, A. V., Stevenson, M. & Hendry, L. C. [2017], Why and how do firms reshore? A contingency-based conceptual framework. Operations Management Research, 10(3), 85–103. https://doi.org/10.1007/s12063-017-0124-5
[5] Brem, A., & Voigt, K. I. [2009], Integration of market pull and technology push in the corporate front end and innovation management - insights from the German software industry. Technovation, 29(5), 351-367. https://doi.org/10.1016/j.technovation.2008.06.003
[6] Chernova, V. Yu. (2020). Reshoring to the EU and the USA: problems, trends and prospects. RUDN Journal of Economics, 28(1), 160–171. https://doi.org/10.22363/2313-2329-2020-28-1-160-171
[7] Cullen, J., & Willcocks, L. P. (2003). Intelligent IT outsourcing: Eight building blocks to success. Butterworth-Heinemann. https://doi.org/10.4324/9780080469911
[8] Dachs, B. et al. (2019). Backshoring of production activities in European manufacturing. Journal of Purchasing and Supply Management, 25(3), 100531. https://doi.org/10.1016/j.pursup.2019.02.003
[9] Dachs, B., Kinkel, S. & Jäger, A. (2019). Bringing it all back home? Backshoring of manufacturing activities and the adoption of Industry 4.0 technologies. Journal of World Business, 54(6), 101017. https://doi.org/10.1016/j.jwb.2019.101017
[10] de Backer, K. & Flaig, D. (2017). The future of global value chains: Business as usual or a ‘new normal? OECD Science, Technology and Innovation Policy Papers, 41. Paris: OECD Publishing. https://doi.org/10.1787/d8da8760-en
[11] d'Estmael, J. D. W., Dermine, E., Deschacht, N., Dotti, N. F., Huegaerts, K., Janssens, B., Trionfetti, M. C., & Vanroelen, C. (2020). Insourcing, outsourcing or backsourcing? The case of the Brussels Regional administration. Brussels Studies, (145).
[12] Essletzbichler, J., Pintar, N., Grumiller, J. et al. (2021). Post Covid-19 value chains – Options for reshoring production back to Europe in a globalised economy, European Parliament, Directorate - General for External Policies of the Union, Publications Office. https://data.europa.eu/doi/10.2861/118324
[13] Gupta, M., & Kotabe, M. (2015). Offshoring and reshoring: An updated strategic framework. Management International Review, 55(2), 203-229. https://doi.org/10.1111/jscm.12019
[14] Hätönen, J., Eriksson, T., & Nummela, N. (2015). Backsourcing: Why and how organizations are changing their sourcing arrangements. Journal of Purchasing and Supply Management, 21(3), 176-188.
[15] Hilletofth, P. et al. (2019). Right-shoring: Making resilient offshoring and reshoring decisions. Journal of Purchasing and Supply Management, 25(3), 100540. https://doi.org/10.1016/j.pursup.2019.100540
[16] Johansson, M. & Olhager, J. (2018). Manufacturing relocation through offshoring and backshoring: The case of Sweden. Journal of Manufacturing Technology Management, 29(4), 637–657. https://doi.org/10.1108/JMTM-01-2017-0006
[17] Kotabe, M., & Murray, J. Y. (2004). Global sourcing strategy and sustainable competitive advantage. Industrial Marketing Management, 33(1), 7-14. https://doi.org/10.1016/j.indmarman.2003.08.004
[18] Lee, J. N., Huynh, M. Q., & Kwok, R. C. W. (2015). The reshoring phenomenon: What supply chain academics ought to know and should do. International Journal of Production Economics, 159, 1-9. https://doi.org/10.1504/IJSCOR.2022.10044576
[19] Molléri, J. L., & Casper J., M. (2023). Backsourcing of IT with focus on software development - A systematic literature review. Journal of Systems and Software, 204, 1-30. https://doi.org/10.1016/j.jss.2023.111771
[20] Techslang (2023). https://www.techslang.com
[21] The European Reshoring Monitor (2023). Brussels, European Commission.
[22] Williamson, O. E. (1979). Transaction-Cost Economics: The Governance of Contractual Relations. The Journal of Law and Economics, 22(2), 233–261. https://doi.org/:10.1086/466942