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Creating value through reverse logistics in a multi-echelon used clothing chain
University of Borås, Borås, Sweden.
VTT Technical Research Centre of Finland.
University of Borås, Borås, Sweden.
Linköping University, Department of Management and Engineering, Logistics & Quality Management. Linköping University, Faculty of Science & Engineering.
2016 (English)In: The Proceedings of 21st International Symposium on Logistics (ISL 2016): Sustainable Transport and Supply Chain Innovation / [ed] KS Pawar and KM Tsai, Nottingham, UK: Centre for Concurrent Enterprise, Nottingham University Business School , 2016, 349-359 p.Conference paper, Published paper (Refereed)
Abstract [en]

Purpose of this paper:

Reverse logistics (RL) in retail value chains is an increasingly emerging phenomenon yet under - explored in research ( Bernon et al., 2011 ) . T he literature becomes shallow er wh ile discussing the "process" of val ue creation in such context . Given the inherent complexity and differentiated value creation in many RL networks ( Schenkel et al., 2015 ) , e.g. in used clothing, such values are consti tuted by different actors by prioritizing and committing their strategic resources for developing distinct rent - earning competencies. In this context, the purpose of this paper is to explore how differential value is created by firms embedded in a multi - echelon reverse value chain for used clothing, by successfully exploiting multi - level (intra - and inter - firm) resources, via various underlying rent-earning mechanisms.

Design/methodology/approach:

An explorative case study approach is adopted in r everse clothing value chain context to investigate  the  take - back  scheme  that includes multiple  actor  types  and  also  spa ns globally . An abductive research process is adopted along two stages; Stage 1 (proposes a new theoretical framework on “how” value is c reated in reverse value chains based on resource - based (RB) and relational rent - earning views to exploit various RL attributes or capabilities)  and  Stage  2  (seeks  real - life  case  observations  to  explore  the  empirical reality), and finally systematically com bining these knowledge. Data is collected through s emi - structured interviews, observation and documented notes and reports, conducted with various actors, viz. retailers, social enterprises (charities and non - profit  retailers),  commercial  brokers/sorters, and  specialized  sorting  firms  from India.

Findings

Differentiated  values  are  created by the  actors  in volved  with  multi - echelon  take - back n e twork . The  RB  and  relational  theories  underpin  the  rent - earning  mechanisms  further highlighting several key ways to sustain this value. The VRIO model in the RB theory ( Barney and Clark, 2007 ) shows how value is created within firm  boundaries .  The  relational  view  highlights  four  rent - earning  mechanisms: relational  asset  specificity  and  information  sharing  for  the  success  o f  cost - neutral take - back  agreement , along  with resource  and  capability  complementarities  and  trust in  the relation ship . Together  they  provide  understanding  of  the entire  “process”  of  rent generation.

Value:

This research  contribute to  exploring the “process” of rent - earning generated by  critical intra - and inter - organizational enablers of value creation in complex RL networks.

Practical implications:

The paper improves the understanding of the key mechanism for value creation for actors working wit hin the used clothing chain.

Place, publisher, year, edition, pages
Nottingham, UK: Centre for Concurrent Enterprise, Nottingham University Business School , 2016. 349-359 p.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-133864ISBN: 9780853583172 (print)OAI: oai:DiVA.org:liu-133864DiVA: diva2:1064672
Conference
The 21th annual International Symposium on Logistics (ISL), 4-7 july, Kaoshiung, Taiwan
Available from: 2017-01-12 Created: 2017-01-12 Last updated: 2017-01-26Bibliographically approved

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CiteExportLink to record
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Citation style
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