Nearshoring as a Relational Investment: Does Sustainability Perception Generate Norm of Reciprocity?


Creative Commons License

Dayanğan Ç., Özgen Ö., Bıçakcıoğlu-Peynirci N.

48th EIBA Annual Conference 2022, Oslo, Norway, 8 - 10 December 2022

  • Publication Type: Conference Paper / Unpublished
  • City: Oslo
  • Country: Norway
  • Dokuz Eylül University Affiliated: Yes

Abstract

The fact that the trend of moving manufacturing activities to overseas presents difficulties and disadvantages given the unexpected socio-economic and geopolitical reasons has led companies to different relocation strategies. Moreover, downstream of the value chain, consumers, are also affected by these changes. Aside from the grievances caused by supply chain disruptions (e.g., rising prices, insufficient stocks), the environmental harm of long-distance value chain activities has also increased the awareness of consumers in this context. Therefore, this study examines the consumer perception towards the nearshoring decision, which both shortens the geographical distance in supply chains, emphasizes regional production and highlights environmental production motives. Based on the social exchange theory, how the consumers and companies, who are already parties to an economic relationship, regulate the relationship based on the economic or environmental sustainability motivations behind the nearshoring decision, which is a relocation strategy, will be examined. Using the scenario-based experimental design method, it will be examined and tested how different sustainability dimensions (economic vs. environmental( execute the norm of reciprocity between consumers and reshored companies.