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Reshoring by small firms: dual sourcing strategies and local subcontracting in value chains
[The importance of being a capable supplier: Italian industrial firms in global value chains]

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  • Jacopo Canello
  • Giulio Buciuni
  • Gary Gereffi

Abstract

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.

Suggested Citation

  • Jacopo Canello & Giulio Buciuni & Gary Gereffi, 2022. "Reshoring by small firms: dual sourcing strategies and local subcontracting in value chains [The importance of being a capable supplier: Italian industrial firms in global value chains]," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 15(2), pages 237-259.
    • Handle: RePEc:oup:cjrecs:v:15:y:2022:i:2:p:237-259.
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    File URL: http://hdl.handle.net/10.1093/cjres/rsac015
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    References listed on IDEAS

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    Cited by:

    1. Huiwen Gong & Robert Hassink & Christopher Foster & Martin Hess & Harry Garretsen, 2022. "Globalisation in reverse? Reconfiguring the geographies of value chains and production networks [Does Covid-19 Spark the End of Globalisation?]," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 15(2), pages 165-181.
    2. Xu, Tao Louie & Hu, Yabei, 2024. "Towards sustainable prosperity? Policy evaluation of Jiangsu advanced manufacturing clusters," Technology in Society, Elsevier, vol. 77(C).
    3. Xu, Tao & Hu, Yabei, 2023. "Towards Sustainable Prosperity? Policy Evaluation of Jiangsu Advanced Manufacturing Clusters," MPRA Paper 120904, University Library of Munich, Germany, revised 10 May 2024.
    4. Roberta Capello & Roberto Dellisanti & Giovanni Perucca, 2024. "At the territorial roots of global processes: Heterogeneous modes of regional involvement in Global Value Chains," Environment and Planning A, , vol. 56(3), pages 833-848, May.
    5. Songhee Kang & Jörn Altmann & Gangmin Park, 2024. "Empirical Analysis of the Effect of an Evidence-Based Policy for a Wicked Problem—Lessons Learned from the South Korean Industry Policy History for the Structural Reform of Subcontracting Practice in ," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12809-12829, September.

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