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

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2022-06-18

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Canello, J
Buciuni, G
Gereffi, G

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<jats:title>Abstract</jats:title> <jats:p>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.</jats:p>

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10.1093/cjres/rsac015

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Canello, J, G Buciuni and G Gereffi (2022). Reshoring by small firms: dual sourcing strategies and local subcontracting in value chains. Cambridge Journal of Regions, Economy and Society, 15(2). pp. 237–259. 10.1093/cjres/rsac015 Retrieved from https://hdl.handle.net/10161/25491.

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Gereffi

Gary Gereffi

Professor Emeritus of Sociology

Gary Gereffi is Emeritus Professor of Sociology and Director of the Global Value Chains Center at Duke University (https://gvcc.duke.edu/).  He has published over a dozen books and numerous articles on globalization, industrial upgrading, and social and economic development, and he is one of the originators of the global value chains framework.  His most recent books are:  Handbook on Global Value Chains (co-edited by Stefano Ponte, Gary Gereffi and Gale Raj-Reichert), Cheltenham, UK: Edward Elgar Publishing. 2019); and Global Value Chains and Development: Redefining the Contours of 21st Century Capitalism (Cambridge University Press, 2018).  Current projects include:  (1) the impact of U.S. protectionism on jobs and regional trade agreements; (2) evaluating how the digital economy and Industry 4.0 are likely to affect international business strategies and industrial upgrading; and (3) shifting regional interdependencies in East Asia and North America, with a focus on China, South Korea and Mexico vis-à-vis the United States.


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