Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences

Objective: The purpose of this article is to evaluate the adequacy of the present theoretical knowledge relating to divestments and de-internationalization in the context of explaining the backshoring phenomenon – a relatively new, but gaining in importance specific behaviour of companies in the...

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Main Author: Michał Młody
Format: Article
Language:English
Published: Cracow University of Economics 2016-09-01
Series:Entrepreneurial Business and Economics Review
Subjects:
Online Access:https://eber.uek.krakow.pl/index.php/eber/article/view/157
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author Michał Młody
author_facet Michał Młody
author_sort Michał Młody
collection DOAJ
description Objective: The purpose of this article is to evaluate the adequacy of the present theoretical knowledge relating to divestments and de-internationalization in the context of explaining the backshoring phenomenon – a relatively new, but gaining in importance specific behaviour of companies in the process of internationalization. Research, Design & Methods: The paper discusses various aspects of contemporary processes of internationalization. The employed research design is qualitative – the study has been based on conclusions drawn from critical literature studies. Findings: Although backshoring shares some common characteristics with the concepts of de-internationalization and international divestments, there are several noticeable differences: e.g. both de-internationalization and international divestments are rather related to wholly owned subsidiaries, while backshoring includes both activities outsourced to company’s foreign suppliers and to its subsidiaries. Implications & Recommendations: It is necessary to develop new concepts that in a holistic way will define the decision-making process of enterprises which use de-internationalization and backshoring of business processes as part of their long-term internationalization strategies. The article indicates some dependencies and issues that must be considered in formulating new theoretical proposals. Contribution & Value Added: The originality of this study lies in the in-depth analysis of the similarities and differences between the processes of de-internationalization/international divestments and backshoring.     
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spelling doaj-art-cb45a197bdd54f5e85497b36e6c82b452025-08-20T03:51:56ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-88212016-09-014310.15678/EBER.2016.040312144Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and DifferencesMichał Młody0Poznan University of Economics and Business Objective: The purpose of this article is to evaluate the adequacy of the present theoretical knowledge relating to divestments and de-internationalization in the context of explaining the backshoring phenomenon – a relatively new, but gaining in importance specific behaviour of companies in the process of internationalization. Research, Design & Methods: The paper discusses various aspects of contemporary processes of internationalization. The employed research design is qualitative – the study has been based on conclusions drawn from critical literature studies. Findings: Although backshoring shares some common characteristics with the concepts of de-internationalization and international divestments, there are several noticeable differences: e.g. both de-internationalization and international divestments are rather related to wholly owned subsidiaries, while backshoring includes both activities outsourced to company’s foreign suppliers and to its subsidiaries. Implications & Recommendations: It is necessary to develop new concepts that in a holistic way will define the decision-making process of enterprises which use de-internationalization and backshoring of business processes as part of their long-term internationalization strategies. The article indicates some dependencies and issues that must be considered in formulating new theoretical proposals. Contribution & Value Added: The originality of this study lies in the in-depth analysis of the similarities and differences between the processes of de-internationalization/international divestments and backshoring.     https://eber.uek.krakow.pl/index.php/eber/article/view/157backshoringreshoringinternational divestmentinternationalization processde-internationalization
spellingShingle Michał Młody
Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences
Entrepreneurial Business and Economics Review
backshoring
reshoring
international divestment
internationalization process
de-internationalization
title Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences
title_full Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences
title_fullStr Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences
title_full_unstemmed Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences
title_short Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences
title_sort backshoring in light of the concepts of divestment and de internationalization similarities and differences
topic backshoring
reshoring
international divestment
internationalization process
de-internationalization
url https://eber.uek.krakow.pl/index.php/eber/article/view/157
work_keys_str_mv AT michałmłody backshoringinlightoftheconceptsofdivestmentanddeinternationalizationsimilaritiesanddifferences