The Impact of Supply Chain Localization on Operational Resilience in the Context of Manufacturing Backflow: An Empirical Study Based on China Enterprises

Abstract

In the background of global manufacturing relocation and supply chain restructuring, whether to localise the supply chain can improve the operational resilience of enterprises is now a hot topic in supply chain management research. Through a review of the literature, this
paper will study how and under what circumstances the decentralization of the supply chain helps improve business stability in operations.
Based on the research conducted to date, it has been found that localisation has both positive and negative effects on resilience; that is to say,
there is a shortening of the response time due to geographical proximity, a lower compliance risk as a result of institutional alignment and
informal coordination buffers provided by local networks, on the other hand, there are systemic vulnerabilities caused by geographic concentration, erosion of long-term resilience investments due to costs, and reduced flexibility in the restructuring process due to localisation inertia.
The reasons for the different effects are differences in localization intensity, different definitions of the resilience dimension, various technologies specific to industries, and some important moderating factors such as the external institutional environment, level of industrial cluster
development, etc.