Back to the Roots: Drivers for Reshoring in Swedish Multinational Enterprises

Sammanfattning

As global supply chains become increasingly vulnerable due to geopolitical instability, rising protectionism, and sustainability pressures, the trend of reshoring has emerged as a strategic response among multinational enterprises (MNEs). This thesis explores the drivers behind the reshoring decisions of seven Swedish MNEs and examines the entry modes (EMs) through which these firms implement their reshoring strategies. Using a qualitative, multiple case study approach and semi-structured interviews with key decision-makers, the study identifies four core reshoring drivers: shrinking cost advantages, supply chain risk, branding and sustainability demands. The study also finds that EM decisions most often are shaped by path dependency, firm size and internal resources. This also revealed that the geographic proximity gained through reshoring, in many cases can give the same benefits as internalising production would. This study contributes to the reshoring literature by addressing the practical considerations of reshoring in a rapidly shifting business landscape. By identifying and examining previously underexplored drivers of reshoring, this study is beneficial to future researchers within the field, particularly within the Swedish context. The study also adds to existing literature by offering insights into how EM decisions are influenced by different factors. These findings provide a foundation for future research to explore how reshoring drivers and entry mode choices vary across national and industry contexts, ​​particularly regarding sustainability as an emerging driver.