INDUSTRIAL RELOCATION OF MANUFACTURING COMPANIES

Dana C. Deselnicu, Beatrice A. Lupu, Frank Bezzina, Sandra S. G. Haddad

Abstract


The paper examines the phenomenon of industrial relocation, exploring its theoretical framework and presenting a case study on Romanian manufacturing companies. The study reveals a limited interest in relocation among these companies, both currently and over the past five years, indicating a stable and favorable business environment in Romania. The research identified cost optimization as a primary reason for relocation. As key factors for relocation, reputational risk and sustainability strategies were also identified. The case study used qualitative methodology and the interview method and involved 12 prominent Romanian manufacturing companies to assess their relocation behavior. The results revealed that cost reduction remains the most significant motivator. However, the fear of reputational damage and a strong commitment to sustainability could outweigh the potential benefits of relocating abroad. This suggests a shift towards a more holistic approach to strategic decision-making that takes into consideration more than financial considerations. The paper ends by highlighting the complex interplay of cost, reputation, and sustainability in shaping relocation decisions for Romanian companies, emphasizing the increasing importance of responsible business practices in the globalized economy. 

Keywords


industrial relocation, offshoring, backshoring, manufacturing companies.

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DOI: https://dx.doi.org/10.21622/MARLOG.2025.14.1.81

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Copyright (c) 2025 Dana C. Deselnicu, Beatrice A. Lupu, Frank Bezzina, Sandra S. G. Haddad

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The International Maritime Transport and Logistics Journal (MARLOG)

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