The Impact of Reshoring Decisions on Prospective Employees

Abstract

Reshoring, the decision to bring previously offshored operations back to the home country, has received growing attention in the fields of international business and operations strategy. However, despite its potential effects on labor markets, there is limited understanding of how such decisions are perceived by prospective employees. This thesis addresses that gap by examining whether reshoring influences job-seeker behavior. Through a between-subjects experimental design targeting an Italian sample, the study tested whether reshoring affects application intentions, willingness to accept lower salaries, and perceptions of mission alignment, pride, and employer attractiveness. While reshoring did not directly increase intention to apply or willingness to compromise on salary, it exerted indirect effects through symbolic attributes, particularly perceived employer attractiveness, which emerged as a key predictor of both application intent and salary trade-offs. These findings suggest that the reputational impact of reshoring may depend on how such actions are interpreted symbolically and may vary by context. This study contributes to the literature on reshoring and employer branding by highlighting prospective employees as key external stakeholders and emphasizes the need for further cross-cultural research on the labor market implications of strategic decisions like reshoring.