The key role of infrastructure in backshoring operations: the case of free zones

ABSTRACT

‘Backshoring’ or ‘reshoring’ is a key issue for governments and companies. This article aims to address the role of infrastructure in backshoring process through the free zone areas. Based on the interactive network approach, two case studies have been analysed, one in the United States of America and the other in Mauritius. Results show the helpfulness of this broader view in understanding certain characteristics of backshoring. From this perspective, we could consider backshoring as a network process that binds actors locally thanks to the reshoring of resources in order to combine them and create new value with domestic activities. These activities are neither the same as they were when domestic, nor the same as when they were once abroad because the whole interaction process in the supply chain networks changes the nature of interactions. This research concludes that, offshoring, then backshoring transforms the use of resources, its allocation among actors (countries, clusters and companies) and therefore explains pericentral reverse offshoring.

KEYWORDS:

• Offshoring
• backshoring
• free ports
• global supply chain
• location decision
• free zones

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Erratum

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. World Export Processing Zone Association’s web site: http://www.wepza.org/

2. World Free Zones Organization’s web site: http://www.worldfzo.org/

3. 74th annual report of the foreign-trade zones board to the congress of the United States. Available online at: http://enforcement.trade.gov/ftzpage/annualreport/ar-2012.pdf, last visit 11/11/2013

Additional information

Notes on contributors

Alexandre Lavissière

Alexandre Lavissière is an assistant professor of Logistics at the Institute of Port Education and Research (IPER) at the Normandy Management School in Le Havre, France. He obtained his MS and Ph.D. in management from Kedge Business School. His research interests are in international trade, logistics and transportation, and, more specifically, free ports, dry ports, port management, and airport handling. He was a strategy consultant for 10 years for several companies and international institutions located in more than 20 countries.

Tibor Mandják

Tibor Mandják Doctor Habilitatus, Ph.D. is a research professor at the EM Normandie in France and professor at the Corvinus University in Budapest (Hungary), founding director of the Hungarian IMP Research Centre (hIMP). Tibor’s current research interests are inter-organisational questions, international business relationships and networks and multi-disciplinary approaches of business-to-business marketing. Tibor has published in Industrial Marketing Management, Journal of Business and Industrial Marketing and The IMP Journal and IMP Conference Proceedings. Tibor has been awarded several academic prizes.

Laurent Fedi

Laurent Fedi is an associate professor at Kedge Business School. He is the scientific director of the maritime cluster. He currently leads different research projects on the reform of port governance in the Mediterranean area, the integration of harbour facilities into the corpus of maritime regulations, and the evolution of maritime legal framework, notably on environmental protection (atmospheric pollution from ships) and competition issues.