Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences

Michał Młody ()
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Michał Młody: Poznan University of Economics and Business, Poland

Entrepreneurial Business and Economics Review, 2016, vol. 4, issue 3, 167-180

Abstract: Objective: The purpose of this article is to evaluate the adequacy of the present theoretical knowledge relating to divestments and de-internationalization in the context of explaining the backshoring phenomenon – a relatively new, but gaining in importance specific behaviour of companies in the process of internationalization. Research Design & Methods: The paper discusses various aspects of contemporary processes of internationalization. The employed research design is qualitative – the study has been based on conclusions drawn from critical literature studies. Findings: Although backshoring shares some common characteristics with the concepts of de-internationalization and international divestments, there are several noticeable differences: e.g. both de-internationalization and international divestments are rather related to wholly owned subsidiaries, while backshoring includes both activities outsourced to company’s foreign suppliers and to its subsidiaries. Implications & Recommendations: It is necessary to develop new concepts that in a holistic way will define the decision-making process of enterprises which use de-internationalization and backshoring of business processes as part of their longterm internationalization strategies. The article indicates some dependencies and issues that must be considered in formulating new theoretical proposals. Contribution & Value Added: The originality of this study lies in the in-depth analysis of the similarities and differences between the processes of deinternationalization/international divestments and backshoring.

Keywords: backshoring; reshoring; international divestment; internationalization process; de-internationalization (search for similar items in EconPapers)
JEL-codes: F21 F23 L21 L23 (search for similar items in EconPapers)
Date: 2016
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