Anchoring within Decoupling: The Reshoring Decision for the Rise of Emerging Market Multinationals Under COVID-19 Disruptions

Purpose: This study aims to contribute to empirical research on supply chain risk management and reshoring among Asian Multinational Companies (MNCs). It analyzes the forces of decoupling and anchoring that impact firms’ reshoring strategies from Mainland China during the COVID-19 pandemic, using Taiwan’s official data from 2019 to 2022. Research Implications: The study addresses inconsistencies found in earlier research and suggests directions for future research in the field. The COVID-19 crisis was found to weaken the anchoring effect of local market demand but strengthen that of material supply. Practical Implications: The results indicate that local market demand, material supply, and human resources influence MNCs’ reshoring decisions. Specifically, a stronger local market reduces the likelihood of reshoring, while material supply and human resources increase it. Local human resources showed no significant interaction effect with the COVID-19 crisis. Originality/Value/Contribution: The research provides valuable insights by focusing on Asian MNCs that have reconsidered their offshoring strategies due to uncertainties heightened by geopolitical tensions and the COVID-19 pandemic. It contributes new empirical evidence on the forces driving reshoring from Mainland China.