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The Offshoring/Outsourcing Matrix or " Make/Buy–Here/ There "  

The Offshoring/Outsourcing Matrix or " Make/Buy–Here/ There "  

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In the field of global optimization, many efforts have been devoted to globally solving bound constrained optimization problems without using derivatives. In this paper we consider global optimization problems where both bound and general nonlinear constraints are present. To solve this problem we propose the combined use of a DIRECT-type algorithm...

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... The two-dimensional frameworks of offshoring and outsourcing focusing on the location and transaction governance (where and how) tend to, however, overlook the issue of strategic purposes and capabilities (why) (Tallman, 2011). Both issues are also central in the internationalization strategy. ...
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In just a matter of a decade, the Danish healthcare product manufacturer Coloplast underwent a complete organizational reconfiguration from being a local Danish manufacturing company to become a truly multinational corporation. Beginning in 2001, Coloplast commenced the process of relocating major parts of its manufacturing activities away from Denmark to Tatabanya in Hungary. Ten years later, the company had relocated up to almost 90 % of the production mainly to Hungary and China, but also to France and the United States. This reconfiguration had given substantial benefits, such as access to lower labor and production costs, but also an important means to reduce redundant organizational layers and resources. However, a transformation of this caliber rarely comes without challenges. In particular, Coloplast experienced many challenges such as empowering the new subsidiaries, adjusting the organizational requirements and identifying the detrimental organizational complexities. As Coloplast’s Operations Manager Allan Rasmussen explained: “We had designed an organizational structure that was too complex, with complex decision processes, complex governance structure, and complex communication channels”.
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The paper is focused on a phenomenon – the so called “back-shoring” (often indicated also as “onshoring”, “in-shoring”, “re-shoring”, “reverse-shoring”, “international re-concentration”, “reverseglobalization”, even if they are not always considered synonymous) – which is becoming more and more diffused in the last years. Notwithstanding this increasing diffusion, it is still rarely investigated by academics and often discussed only in economic newspapers and white papers by management consulting firms. Manufacturing “back-shoring” is the process by which previously off-shored production are moved back to the domestic location (Kinkel and Maloca, 2009; Leibl, Morefield and Pfeiffer, 2011) an earlier off-shored or off-shore outsourced manufacturing activity is relocated in the firm’s home country. Based on a comprehensive literature review and evidences regarding 87 western companies, the objectives of this paper are: a) to analyze the relevance of such a managerial phenomenon; b) to identify and classify its motivations; c) to highlight some research questions.
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Over the past five years, use of the term "back-shoring" (and of its apparent synonyms) has multiplied dramatically, especially in economics journalism and in consulting firms' white papers. More recently, the topic has prompted academic investigation too, despite the lack of reliable data. This paper aims to establish the importance of manufacturing back-shoring, especially in the wake of the financial crisis, and to promote research on this topic within the international business scientific community. To this end, we conducted an in-depth analysis of both the academic and the practitioner's literature, and now propose an operational definition of back-shoring. Given the paucity of currently available data, we base the following discussion on the evidence provided by our inter-University research group database, which contains 230 operational observations on back-shoring activities enacted by manufacturers with a global sales profile. Furthermore, we focus on 50 operations implemented by Italian 2 companies and compare them with analogous operations effected by German firms and already described in the literature. Our review of the literature analysis of readily available evidence clearly demonstrates that further multi-method and multi-disciplinary research is needed.