Reshoring by small firms: dual sourcing strategies and local subcontracting in value chains

The importance of being a capable supplier: Italian industrial firms in global value chains

Jacopo Canello (), Giulio Buciuni and Gary Gereffi

Cambridge Journal of Regions, Economy and Society, 2022, vol. 15, issue 2, 237-259

Abstract: This article assesses how the reshoring of manufacturing activities by micro and small enterprises (MSEs) affects the performances of co-located subcontracting networks and the reconfiguration of global value chains (GVCs). We utilize quantitative microdata of Italian MSEs operating in the clothing and footwear industries during the 2008–2015 period. Empirically MSE reshoring does not have a significant impact on domestic subcontractors’ birth rates and survival chances, whereas it is positively associated with their productivity growth. Most MSEs in our sample adopt a dual sourcing strategy, expanding their global production networks while preserving their local supply base. Local and global production networks are not two alternative paradigms of industrial organization; they can be complementary and mutually reinforce each other.

Keywords: reshoring; global value chains; subcontractors; offshore outsourcing; dual sourcing strategies; micro and small enterprises (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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