Reshoring by small firms: dual sourcing strategies and local subcontracting in value chains

Journal Article (Journal Article)

This article assesses how the reshoring of manufacturing activities by micro and small enterprises (MSEs) affects the performances of co-located subcontracting networks and the reconfiguration of global value chains (GVCs). We utilize quantitative microdata of Italian MSEs operating in the clothing and footwear industries during the 2008-2015 period. Empirically MSE reshoring does not have a significant impact on domestic subcontractors' birth rates and survival chances, whereas it is positively associated with their productivity growth. Most MSEs in our sample adopt a dual sourcing strategy, expanding their global production networks while preserving their local supply base. Local and global production networks are not two alternative paradigms of industrial organization; they can be complementary and mutually reinforce each other.

Full Text

Duke Authors

Cited Authors

  • Canello, J; Buciuni, G; Gereffi, G

Published Date

  • July 1, 2022

Published In

Volume / Issue

  • 15 / 2

Start / End Page

  • 237 - 259

Electronic International Standard Serial Number (EISSN)

  • 1752-1386

International Standard Serial Number (ISSN)

  • 1752-1378

Digital Object Identifier (DOI)

  • 10.1093/cjres/rsac015

Citation Source

  • Scopus