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Reorganizing global supply-chains: Who, What, How, and Where

Gabriel Baratte, Lionel Fontagné and Raphaël Lafrogne-Joussier

Journal of Economic Behavior & Organization, 2025, vol. 237, issue C

Abstract: In an ever-evolving business environment, firms are differently exposed to shocks and may or may not bear the costs of reorganizing their value chain by reshoring or offshoring. This paper studies the prevalence and modalities of such reorganizations, based on a survey of French firms on the decision to reorganize part of their value chain between January 2018 and December 2020. Such decisions turn out to be rare, carried out by firms with a higher share of skilled workers, in manufacturing rather than in services, and dominated by multinational firms. Although high-skilled firms reorganize more, the reorganized business functions are less skill-intensive and more intensive in routine tasks. Activities that are more intangibles-intensive are more likely to be reorganized within the firm. Finally, apart from reshoring in France, activities that are offshored are located close to France. India, which combines low average wages with a large pool of highly skilled labor, receives a disproportionate share of skill-intensive activities.

Keywords: Supply-chains; Reshoring; Offshoring (search for similar items in EconPapers)
JEL-codes: F14 F23 L10 L23 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:237:y:2025:i:c:s0167268125002744

DOI: 10.1016/j.jebo.2025.107155

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Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

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