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Towards right-shoring: a framework for off-and re-shoring decision making

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Abstract

Location decisions are crucial for manufacturing plants. While current research mainly stresses the cost considerations of location decisions, this research focusses on a more comprehensive decision-making process. Based on analyzing the motivations for off-and re-shoring, we present a decision-making framework which will help companies to ‘right-shore’. Through a multiple case study approach in the aeronautics industry, an industry known for its technical complexity and innovative nature, we will validate and broaden our initial decision-making framework based on literature. While analyzing this framework, it became apparent that the main motivation for offshoring in the aeronautic industry is far from being restricted to cost-cutting considerations. More specific, companies in this industry are willing to develop sustainable commercial partnerships in emerging countries to benefit from new capacities and resources. In the same vein, re-shoring decisions are grounded on long-term perspectives and are carefully balanced. While providing a comprehensive framework for offshoring and re-shoring decisions, our framework enables companies to make better informed decisions for choosing the right location for their plants.

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Authors and Affiliations

  1. School of Business and Economics, Maastricht University, P.O. Boxs 616, 6200 MD, Maastricht, The Netherlands

    Claire Joubioux

  2. Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Avenue F.D. Roosevelt 42, 1050, Bruxelles, Belgium

    Evelyne Vanpoucke

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  1. Claire Joubioux
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  2. Evelyne Vanpoucke
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Correspondence to Evelyne Vanpoucke.

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Joubioux, C., Vanpoucke, E. Towards right-shoring: a framework for off-and re-shoring decision making. Oper Manag Res 9, 117–132 (2016). https://doi.org/10.1007/s12063-016-0115-y

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