Mimetic isomorphism, offshore outsourcing and backshoring decisions among micro and small enterprises

Abstract

This paper exploits novel data on Italian manufacturing firms to investigate how mimetic isomorphism influences offshore outsourcing and backshoring decisions among micro and small enterprises (MSEs). The results show that offshore outsourcing by peers located in the same home region positively affects the likelihood that an MSE will engage in the same global sourcing strategy. When these dynamics emerge, firms are more likely to engage in long-lasting foreign subcontracting relationships. Mimetic isomorphism is only detected during the early stages of the internationalization process, while backshoring practices appear to be the result of more independent decisions.