The impact of environmental and social sustainability on the reshoring decision making and implementation process: insights from the bicycle industry

Abstract

After decades of huge production offshoring, companies are increasingly re-evaluating their production footprint, often implementing so-called reshoring strategies. Among them scarce attention has been devoted to the near-shoring option, i.e., relocation to the home region. At the same time, the impact of environmental and social sustainability on such strategies is an emerging issue within the reshoring scholars’ debate. This paper aims to shed new light on this debate focusing on the bike industry. To reach the research aim, a single case study was investigated, regarding an Austrian bike manufacturer that decided to near-shore the assembling phase to Poland in 2021. Collected evidence was analyzed through an interpretative framework based on the extant literature, allowing us to understand the impact of environmental and social issues on the reshoring decision making and implementation process, and its outcomes. The analyzed case study shows that environmental and social issues may play different roles when near-shoring decisions are taken and implemented. However, it emerges that the magnitude of such impacts may differ among the specific levels of analysis investigated (namely drivers, barriers, enabling factors and outcomes) and the sustainability pillar investigated (environmental vs. social one). The debate on sustainability impacts on a firm’s relocation strategies is still in its infancy, moreover the near-shoring alternative was not considered earlier in the academic debate. Therefore, this paper is the first attempt to shed new light on this issue and also proposes some future research avenues.