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Exploring value creation and appropriation in the reverse clothing supply chain
Linköping University, Department of Management and Engineering, Logistics & Quality Management. Linköping University, Faculty of Science & Engineering.
TT Technical Research Centre of Finland.
University of Borås, Borås, Sweden.
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, 340-348 p.Conference paper, Published paper (Refereed)
Abstract [en]

Purpose of this paper:

The purpose of this paper is to explore the two processes of value creation and appropriation among companies in a reverse clothing supply chain. The value concept has in recent years got increased attention in research on reverse logistics (Jayaraman and Luo, 2007). However, there is still a lack of more detailed understanding of the values created. There is also a need to not only consider the value creation, but also how the value is appropriated among supply chain members. Whereas the value creation process is concerned with the total amount of value created among supply chain members, the value appropriation process decides the involved companies’ ability to extract money from the value created (Wagner et al., 2010).

 

Design/methodology/approach:

Grounded in the two fundamental processes of creating and appropriating value (Mizik and Jacobsen, 2003), this paper applies the value concept on a reverse supply chain. The paper is based on a case study of the take-back scheme for used clothes in the textile fashion industry. The case study includes retailers, charity organisations, profit-making recyclers and specialised sorting companies.

 

Findings:

By focusing on the value creation processes, and the type of use value each supply chain member creates, and the processes of value appropriation among the supply chain members, this paper provides an improved understanding of the reverse clothing supply chain and its members.

 

Value:

The value concept has so far been discussed at a superficial level in research on reverse supply chains. This research demonstrates that the value concept, including value creation as well as appropriation, helps to understand the rationale behind a certain supply chain structure in terms of participating supply chain members, types of activities conducted, and division of responsibility.

 

Practical implications (if applicable):

Different incitements for being involved in a reverse clothing supply chain may result in different types of relationships, ranging from collaboration to fierce arms-length agreements, among supply chain members.

 

References:

Jayaraman, V. and Luo, Y. (2007). Creating Competitive Advantages Through New Value Creation: A Reverse Logistics Perspective.' Academy of Management Perspectives, Vol. 21 No. 2, pp. 56-73.

 

Mizik, N. and Jacobson, R. (2003). Trading off between value creation and value appropriation: The financial implications of shifts in strategic emphasis, Journal of Marketing, Vol. 67 No 1, pp. 63-76.

 

Wagner, S., Eggert, A. and Lindemann, E. (2010). Creating and appropriating value in collaborative relationships, Journal of Business Research, Vol. 63 No 8, pp. 840-848.

 

Place, publisher, year, edition, pages
Nottingham, UK: Centre for Concurrent Enterprise, Nottingham University Business School , 2016. 340-348 p.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-133865ISBN: 9780853583172 (electronic)OAI: oai:DiVA.org:liu-133865DiVA: diva2:1064675
Conference
The 21th annual International Symposium on Logistics (ISL), 4-7 july, 2016 Kaoshiung, Taiwan
Available from: 2017-01-12 Created: 2017-01-12 Last updated: 2017-01-25Bibliographically approved

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