Nearshoring Practices of Scandinavian MNCs in Central and Eastern Europe

The principal objective of this paper is to unravel and assess current nearshoring practices of Scandinavian MNCs. In addressing this issue, we draw on the literature within the areas of offshoring and outsourcing. We use mixed methods of enquiry involving case studies, survey techniques as well as secondary statistical data. To provide a more refined view on the practices and processes of nearshoring, we complement the case studies of Scandinavian manufacturers with a survey of 55 Lithuanian vendor companies and other statistical data. The paper outlines the main drivers of nearshoring in Scandinavian manufacturing firms. Moreover, we are able to elucidate how the initiatives evolved over time and what were various factors affecting them. The results of the survey uncover the perspective of Lithuanian vendor companies on their relationships with partners in Scandinavia. While our discussion concentrates on how companies organise their operations in the global context, it also points to broader policy making implications. The paper addresses the topic of nearshoring, which has so far received a limited attention in the management literature. By incorporating both the perspectives of offshoring and vendor companies, the paper provides a more complete view on the phenomenon and presents main dilemmas underpinning it.