Manufacturing backshoring and sustainability: insights from the Norwegian context

Lise Lillebrygfjeld Halse and Olena Klymenko

Chapter 13 in Research Handbook on Foreign Exit, Relocation and Re-entry, 2022, pp 292-309 from Edward Elgar Publishing

Abstract: After decades where global sourcing of manufacturing from high- to low-cost locations have been prevalent, we have seen an increased attention towards the relocation of manufacturing back to the home country, called backshoring. Sustainability issues have rarely been addressed as a motive or outcome of backshoring. By carrying out multiple in-depth case studies of companies located in a high-cost location, this study contributes to shedding light on the relationship between backshoring and sustainability. The findings of the study show that sustainability may be a direct outcome of backshoring, for example by reducing climate gas emission associated with transport and manufacturing. Moreover, sustainability may be an indirect outcome of backshoring by playing a role regarding companies' knowledge development and innovativeness. Consequently, backshoring can enable companies to develop more sustainable products and services towards new markets, even though sustainability was not the initial motive for backshoring.

Keywords: Business and Management; Economics and Finance (search for similar items in EconPapers)
Date: 2022
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