The interplay of firms’ value chain (re)localization choices: A butterfly effect?

International business scholars are increasingly discussing issues related to deglobalization and the relocation of value chain activities. This paper departs from this ongoing debate to propose a holistic view of location and relocation decisions regarding a firm’s value chain activities. Thus, the paper goes beyond the analysis of the single decision to relocate a single activity to investigate interdependences (if any) among (re)location decisions regarding the following value chain activities: R&D, supply, production, outward logistics, and marketing activities (independently of the adopted governance mode, namely in-sourcing vs out-sourcing). At the same time, the paper aims to evaluate the impact of the set of (re)location decisions on the firm’s network of relationships, both at the home country and the international level. This issue is highly relevant when the relocation decision implies out-sourcing relocated activities. To reach these goals, the paper employs an explorative qualitative methodology through a longitudinal multiple-case study of four Italian manufacturing companies of small and medium size, focusing on their location decisions made over at least ten years. The paper concludes with both theoretical and managerial implications