Exploring factors influencing manufacturing home-shoring strategies: Insights from three diverse geographical regions

Due to the ongoing political instability and economic disruptions in the environments where firms operate, the shift towards regional value chains is redefining global supply chains. Driven by economic policies in regions such as the EU and North America that aim to enhance autonomy and resilience, factors influencing supply chain location decisions have become increasingly important for both business leaders and policymakers. In this context, our paper integrates international business, economic geography, and the global value chain framework to investigate the efficiency-seeking, knowledge-seeking, and supplier-seeking factors that influence home-shoring strategies within manufacturing activities. Our work specifically focuses on identifying which of these factors underpin three key manufacturing home-shoring strategies. Utilising unique primary sub-national-level data and a multinomial logit model, our work examines these strategies across three regions: Veneto (Italy), England (UK), and California (US). Our findings highlight the importance of efficiency-seeking factors as central pull drivers of manufacturing home-shoring strategies. For policymakers, this study underscores the need for a nuanced and regionally tailored approach, as local supplier dynamics and the availability of supportive public policies impact the success of full manufacturing home-shoring strategies across different locations.

CONTRIBUTION TO KNOWLEDGE: This paper advances international business (IB) scholarship by developing new empirical understanding of how efficiency-seeking, knowledge-seeking, and supplier-seeking factors influence manufacturing home-shoring decisions in multinational enterprise (MNE) strategy. The study integrates insights from international business theory, economic geography, and global value chain frameworks to explain firm location decisions in the context of global disruptions such as geopolitical instability and supply chain vulnerabilities. Using data from three distinct sub-national regions (Veneto, England, and California), it produces a comparative model that captures real-world complexity in home-shoring strategy choices.  This contribution is substantive because it moves beyond single-region or post-hoc explanations, creating generalisable knowledge about why and how firms re-anchor activities in their home economies.

ORIGINALITY: The paper is original in two key respects. First, the comparative multi-region design. Unlike prior research that has largely examined single regions or national contexts, this study analyses three geographically and institutionally diverse environments, revealing both consistent and region-specific pull factors. Second, its focus on nuanced strategy types.  It distinguishes between types of home-shoring strategies (e.g., insourcing, outsourcing, full home-shoring) using a multinomial logit model, offering a finer analytical granularity than traditional binary offshoring/reshoring frameworks. These elements push IB methodology beyond simple binary conceptualisations of location strategy toward a continuum of strategic responses to global value chain restructuring.

SIGNIFICANCE: The paper has high significance for IB research, policy, and practice: It extends theory on global value chain reconfiguration by embedding home-shoring decisions within a multi-dimensional empirical framework.  Policymakers get evidence on how regionally tailored policies can enhance resilience and competitiveness by strengthening local supplier networks or supporting efficiency-enhancing investments.  For global firms, the findings offer actionable insights into how MNEs can calibrate strategy under disruption,  a core strategic concern in contemporary IB. This enhances the paper’s relevance for audiences beyond academia — a strong asset for REF panels valuing impact and practical relevance.

RIGOUR: The study employs robust quantitative methods,  specifically a multinomial logit model (see Greene, Chidlow & Strange 2022) ,  to analyse primary sub-national data across three regions, supported by contextual theory drawing from international business, economic geography, and global value chain literatures.  Model choice is theoretically justified and methodologically transparent. Variables are operationalised to capture distinct strategic pulls. The empirical framework makes results replicable and defensible. These features meet the high evidential standards expected for top-tier IB contributions in REF submissions.

LINK TO MY IMPACT: This paper connects to my broader responsible IB / SDG / research governance impact narrative in several ways: First, to the responsible strategy - by identifying regionally differentiated drivers of home-shoring, the work supports responsible firm behaviour under disruption — aligning with SDG 8 (Decent Work & Economic Growth) and SDG 9 (Industry, Innovation & Infrastructure). Second, to the policy engagement (see also Pegoraro, De Propris & Chidlow, 2021): The policy implications for regional economic resilience and value chain autonomy tie directly into evidence-informed policy dialogues, a core component of my impact narrative. Finally and in relation to the research governance, methodologically, the paper bridges disciplinary boundaries (IB theory + economic geography + quantitative modelling), exemplifying rigorous, integrative research that advances global research culture.