Recently firms have been reconsidering offshoring decisions, and have been reshoring activities back from offshore locations to domestic locations. The aim of this paper is to develop a framework for understanding location and governance choice in the reshoring decision. Employing the eclectic paradigm, the resource-based view and transaction cost economics as a theoretical basis, this research highlights the value of integrating location-specific factors with process- and firm-specific factors for understanding location and governance choice in the reshoring decision. Moreover, the framework highlights the value of understanding the interaction of the location-, firm- and process-specific factors on the reshoring decision.
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- Eclectic Theory
- Resource-based View
- Transaction Cost Economics