Drivers and challenges of onshore backsourcing: An exploration based on a case study in the apparel industry

Purpose: The central aim of this paper is the exploration of drivers and challenges of bringing back production activities previously outsourced and offshored within national borders.
Design/methodology/approach: The research strategy followed is an explorative illustrative case study. The findings are illustrated by a case example from the European apparel industry.
Findings: Former cost efficiency advantages of outsourcing and offshoring may be eroded by new strategic developments including advances in technology, supply chain disruptions, and meeting social sustainability standards. Where strategic competitive advantage builds on capabilities outsourced, the challenge lies in bringing them back in-house.
Research limitations: This is an initial illustrative single case study to explore the challenges and drivers of onshore backsourcing as a fundament for further investigations.
Practical & social implications: Global value chains are increasingly being challenged by recurring local and global shocks such as climate change, the Covid-19 pandemic, and the Russian invasion in Ukraine. Companies and their supply chains are challenged by logistical difficulties and disruptions as well as by sustainability issues incurring additional costs and challenges. Companies also need to react to new possibilities of digitalization and may profit from new technology or be threatened to lose competitive advantage due to a new technology. In the light of current developments, if and how global value chains are changing and may be transformed is a relevant and fruitful avenue for research.
Originality/value: This research examines relevant issues of value chain disruption and the resultant re-configuration of production systems in regional or localized production chains emerging in the developed world following ongoing crises such as the Covid-19 pandemic, climate disruption, and international conflict.