Backshoring in light of the concepts of divestment and de-internationalization: Similarities and differences

Abstract

Objective: The purpose of this article is to evaluate the adequacy of the present theoretical knowledge relating to divestments and de-internationalization in the context of explaining the backshoring phenomenon – a relatively new, but gaining in importance specific behaviour of companies in the process of internationalization. Research Design & Methods: The paper discusses various aspects of contemporary processes of internationalization. The employed research design is qualitative – the study has been based on conclusions drawn from critical literature studies. Findings: Although backshoring shares some common characteristics with the concepts of de-internationalization and international divestments, there are several noticeable differences: e.g. both de-internationalization and international divestments are rather related to wholly owned subsidiaries, while backshoring includes both activities outsourced to company’s foreign suppliers and to its subsidiaries. Implications & Recommendations: It is necessary to develop new concepts that in a holistic way will define the decision-making process of enterprises which use de-internationalization and backshoring of business processes as part of their long-term internationalization strategies. The article indicates some dependencies and issues that must be considered in formulating new theoretical proposals. Contribution & Value Added: The originality of this study lies in the in-depth analysis of the similarities and differences between the processes of de-internationalization/international divestments and backshoring.