Skip to main content

Reshoring Strategy: Case Illustrations of Japanese Manufacturing Firms

  • Chapter
  • First Online:
Reshoring of Manufacturing

Part of the book series: Measuring Operations Performance ((MEOP))

Abstract

Increasingly, turbulent global market factors and the mature domestic market conditions dictate firms from the advanced nations (e.g., United States, Western Europe, Japan) to pursue reshoring strategy. Literature review includes articles that provide understanding on the relationship between offshoring and reshoring. Through case studies, we further examine reshoring strategy of Japanese firms in China. We discuss first the historical background of outsourcing strategy of Japanese firms from 1960s to 2010. The multiple case studies of Japanese firms suggest that successful reshoring strategy requires advanced planning for preparing right contexts and careful coordination of goals implementations in terms of strategic cost reduction, productivity enhancements and strategic alliances with suppliers in China. In this sense, the learning outcomes through offshoring in China are reapplied in achieving successful reshoring strategy. Another important finding is that reshoring strategy is to strengthen the mother factories at home base for their long term global competitiveness.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 89.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 119.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Abe’s master plan (2013) The economist. 18 May 2013

    Google Scholar 

  • Ancarani A, Di Mauro C, Fratocchi L, Orzes G, Sartor M (2015) Prior to reshoring: a duration analysis of foreign manufacturing ventures. Int J Prod Econ 169:141–155

    Article  Google Scholar 

  • Bailey D, De Propris L (2014) Manufacturing reshoring and its limits: the UK automotive case. Camb J Reg, Econ Soc 7(3):379–395

    Article  Google Scholar 

  • Blinder AE (2006) Offshoring: the next industrial revolution? Foreign Aff 85(2):113–128

    Article  Google Scholar 

  • Clampit J, Kedia B, Fabian F, Gaffney N (2015) Offshoring satisfaction: the role of partnership credibility and cultural complementarity. J World Bus 50(1):79–93

    Article  Google Scholar 

  • Eisenhardt KM (1989) Building theories from case study research”. Acad Manag Rev 14(4):532–550

    Google Scholar 

  • Ellram LM (2013) Offshoring, reshoring and the manufacturing location decision. J Supply Chain Manag 49(2):3–5

    Article  Google Scholar 

  • Ellram LM, Tate WL, Petersen KJ (2013) Offshoring and reshoring: an update on the manufacturing location decision. J Supply Chain Manag 49:14–22

    Google Scholar 

  • Ferdows K, Vereecke A, De Meyer A (2016) Delayering the global production network into congruent subnetworks. J Oper Manag 41:63–74

    Article  Google Scholar 

  • Foerstl K, Kirchoff JF, Bals L (2016) Reshoring and insourcing: drivers and future research directions. Int J Phys Distrib Logistics Manag 46(5):492–515

    Article  Google Scholar 

  • Fratocchi L, Ancarani A, Barbieri P, Di Mauro C, Nassimbeni G, Sartor M, Vignoli M, Zanoni A (2016) Motivations of manufacturing reshoring: an interpretative framework. Int J Phys Distrib Logistics Manag 46(2):98–127

    Article  Google Scholar 

  • Fratocchi L, Di Mauro C, Barbieri P, Nassimbeni G, Zanoni A (2014) When manufacturing moves back: concepts and questions. J Purchasing Supply Manag 20(1):54–59

    Article  Google Scholar 

  • Friedman TL (2005) The world is flat: a brief history of the twenty-first century. Farrar, Straus and Giroux, New York, USA

    Google Scholar 

  • Gray JV, Skowronski K, Esenduran G, Rungtusanatham MJ (2013) The reshoring phenomenon: what supply chain academics ought to know and should Do. J Supply Chain Manag, 49(2), 27–33

    Google Scholar 

  • Gu FF, Hung K, Tse DK (2008) When does guanxi matter? Issues of capitalisation and its dark sides. J Mark 72:12–28

    Article  Google Scholar 

  • Herath T, Kishore R (2009) Offshore outsourcing: risks, challenges, and potential solutions. Inf Syst Manag 26(4):312–326

    Article  Google Scholar 

  • Hong P, Park Y (2014) Building network capabilities in turbulent competitive environments: practices of global firms from korea and japan. CRC Press (Taylor & Francis Company). ISBN-13: 978-1466515758

    Google Scholar 

  • Jensen PDO (2012) A passage to India: a dual case study of activities, processes and resources in offshore outsourcing of advanced services. J World Bus 47(2):311–326

    Article  Google Scholar 

  • Kang M, Wu X, Hong P (2009) Strategic outsourcing for sustainable competitive advantages: case studies of Multi-National Corporations (MNCs) in China. Strateg Outsourcing: An Int J 2(3):240–256

    Article  Google Scholar 

  • Kang M, Wu X, Hong P, Park Y (2012) Aligning organizational control practices with competitive outsourcing performance. J Bus Res 65(8):1195–1201

    Article  Google Scholar 

  • Kang M, Wu X, Hong P, Park K, Park Y (2014) The role of organizational control in outsourcing practices: an empirical study. J Purchasing Supply Manag 20(3):177–185.

    Article  Google Scholar 

  • Ketokivi M, Choi T (2014) Renaissance of case research as a scientific method. J Oper Manag 32(5):232–240

    Article  Google Scholar 

  • Lampel J, Bhalla A (2011) Living with offshoring: the impact of offshoring on the evolution of organizational configurations. J World Bus 46(3):346–358

    Article  Google Scholar 

  • Larsen MM (2016) Failing to estimate the costs of offshoring: a study on process performance. Int Bus Rev 25(1 Part B):307–318

    Google Scholar 

  • Li X, Barnes I (2008) Proactive supply risk management methods for building a robust supply selection process when sourcing from emerging markets. Strateg Outsourcing: An Int J 1(3):252–267

    Article  Google Scholar 

  • Macchion L, Danese P, Vinelli A (2015) Redefining supply network strategies to face changing environments. A study from the fashion and luxury industry. Oper Manag Res 8(1–2):15–31

    Article  Google Scholar 

  • Manning S, Massini S, Lewin AY (2008) A dynamic perspective on next-generation offshoring: the global sourcing of science and engineering talent. Acad Manag Perspect 22(3):35–54

    Article  Google Scholar 

  • Oki K (2009) Building capabilities of overseas subsidiaries in the context of international functional specialization: a case study of Japanese HDD makers. J Int Bus 1(1):19–34 (in Japanese)

    Google Scholar 

  • Park Y, Hong P (2012) Building network capabilities in turbulent competitive environments: practices of global firms from korea and Japan. CRC Press (Taylor & Francis Company). ISBN: 978-1-4398-5068-8

    Google Scholar 

  • Rubin H (2009) Outsourcing to China: risk management and strategies. The Licensing J 29(10):7–19

    Google Scholar 

  • Schmeisser B (2013) A systematic review of literature on offshoring of value chain activities. J Int Manag 19:390–406

    Article  Google Scholar 

  • Sirkin HL, Zinser M, Hohner D (2011) Made in America why manufacturing will return to the US. Boston Consulting Group, Again, pp 1–15

    Google Scholar 

  • Stentoft J, Olhager J, Heikkilä J, Thoms L (2016) Manufacturing backshoring: a systematic literature. Oper Manag Res 9(3–4):53–61

    Article  Google Scholar 

  • Su C, Yang Z, Zhuang G, Zhou N, Dou W (2009) Interpersonal influence as an alternative channel communication behaviour in emerging markets: the case of China. J Int Bus Stud 40:668–689.

    Article  Google Scholar 

  • Tate WL, Ellram LM, Billington C (2008) Offshore outsourcing of professional services: a transaction cost economics perspective. J Oper Manag 26:148–163

    Article  Google Scholar 

  • Tate WL, Ellram LM, Bals L, Hartmann E (2009) Offshoring outsourcing of services: an evolutionary perspective. Int J Prod Econ 120:512–524

    Article  Google Scholar 

  • Toloken S (2016) Trump on manufacturing, reshoring and trade, Plastics news (23 Nov 2016). (http://www.plasticsnews.com/article/20161123/BLOG03/161129926/trump-on-manufacturing-reshoring-and-trade)

  • Vivek SD, Richey RG, Dalela V (2009) A longitudinal examination of partnership governance in offshoring: a moving target”. J World Bus 44(1): 16–30

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding authors

Correspondence to YoungWon Park or Paul Hong .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing AG

About this chapter

Cite this chapter

Park, Y., Hong, P. (2017). Reshoring Strategy: Case Illustrations of Japanese Manufacturing Firms. In: Vecchi, A. (eds) Reshoring of Manufacturing. Measuring Operations Performance. Springer, Cham. https://doi.org/10.1007/978-3-319-58883-4_7

Download citation

Publish with us

Policies and ethics