Consumer Reshoring Sentiment and Animosity: Expanding Our Understanding of Market Responses to Reshoring

Silvia Grappi (), Simona Romani and Richard P. Bagozzi
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Silvia Grappi: University of Modena and Reggio Emilia
Simona Romani: LUISS Guido Carli
Richard P. Bagozzi: University of Michigan

Management International Review, 2020, vol. 60, issue 1, No 3, 69-95

Abstract: Abstract Although an increasing body of research has focused attention on reshoring, namely, a company’s decision to relocate activities back to the home-country, how and when reshoring impacts market responses remains largely understudied and requires specific theoretical and empirical consideration. Our study complements existing research on reshoring by adopting a demand-side perspective. Through multiple, experimental and survey-based studies, conducted in two countries (Italy and the US), we verified that the interplay between Consumer Reshoring Sentiment (CRS) and Consumer Animosity (CA) leads to specific emotional reactions (gratitude and relief) which, in their turn, affect relevant market responses (positive word of mouth, willingness to buy, advocacy behaviors). Our work provides interesting insights for practitioners and international managers evaluating reshoring; they can capitalize on the positive market responses to reshoring by considering both reshoring sentiments characterizing the home-country market and consumer animosity associated with tensions between the countries involved in the reshoring decision.

Keywords: Reshoring; Location strategy; Consumer reshoring sentiment; Consumer animosity; Market responses (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s11575-019-00399-2

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