Article ID Journal Published Year Pages File Type
1001568 International Business Review 2012 15 Pages PDF
Abstract

In many industries, production offshoring towards countries with low labour costs has been a common trend in recent decades. However, we find some resistance to dismantling factories in a footwear industry cluster in Spain. From a customer perspective of value creation, and based on qualitative and quantitative data, we analyse the evolution of firms’ offshore–inshore strategies associated with the main periods of cluster expansion and contraction over the last 25 years. We highlight three main findings. First, the pressures of the environment can terminate firms but not necessarily the entrepreneurial orientation of their owners to continue in the same industry. Second, adaptive processes to create value for the consumer in the footwear industry seek a balance between production offshoring and domestic production in order to optimize the firm's competitive position. Third, coevolutionary theory should consider not only the selection and adaptation processes but also the capacity of firms to influence their environment, since the alternative strategies to create value for customers in footwear industry have resulted in speeding up the footwear fashion market. We also suggest implications for research and practice.

► We analyse the evolution of firms’ offshore–inshore strategies associated with the main periods of a footwear cluster expansion and contraction over the last 25 years. ► The pressures of the environment can terminate firms but not necessarily the entrepreneurial orientation of their owners to continue in the same industry. ► Adaptive processes to create value for the consumer in the footwear industry seek a balance between production offshoring and domestic production in order to optimize the firm's competitive position. ► Coevolutionary theory should consider not only the selection and adaptation processes but also the capacity of firms to influence their environment, since the alternative strategies to create value for customers in footwear industry have resulted in speeding up the footwear fashion market.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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