Abstract
Purpose of this paper: Reverse logistics in retail value
chains is an increasingly emerging phenomenon yet
under-explored in research. The literature becomes
shallower while discussing value creation opportunities
in such context. However, this is critical in many
retailer-driven consumer goods industries, e.g. fashion,
where sustainability and resources constraint are rising
concerns. In this context, the purpose of this paper is
to investigate value creation phenomenon in a
multi-echelon retail reverse value chain (RRVC), and its
underlying mechanisms.
Design/methodology/approach: A case study approach is
adopted in fashion retail context to investigate the
take-back scheme for used clothes. Data is collected
through semi-structured interviews, observation and
documented reports, along a multi-echelon chain commonly
existing in such take-back schemes, involving collectors
(clothing retailers), global sorters and downstream
processors (in low-cost bases, here in India). Deductive
framework serves as the basis for constructing the
interview questions for exploring the value creation
aspect.
Findings: Differentiated values are created and captured
by the actors involved with multi-echelon take-back
network. The collecting and sorting companies regard
building corporate image and gathering information as the
key values gained through involvement. The processing
firms, on the other hand, are predominantly interested in
generating economic benefits only. Vis-à-vis the
motivation and challenges are also different for the
actors. Environmental factors, e.g. distinct legislative
policies, serve as an entry barrier for all actors, but
at the same time is a strategic resource for the
processing firms. Insights on antagonistic attitudes of
the government and media towards engagement with such
activities are obtained, in the Indian context. Further
value creation at the retailers is underpinned by
strategic customer relationships and information
management, while the processing firms achieve
cost-efficiency through process know-how and skilled
labour.
Value: The paper investigates value creation in a
multi-echelon take-back network, in RRVC context,
epitomising an emergent and dominant post-retail
phenomenon driving towards circular economy. From a
resource-based perspective, the findings illustrate
differentiated value priorities and strategic resource
commitment by the actors along the network, as
highlighted by Jayaraman and Luo (2007) to be essential
for developing distinct rent-earning competence.
Research limitations/implications: Further research needs
to be conducted to investigate how the actors appropriate
value and what capabilities are required to facilitate
it, in such multi-echelon take-back arrangement. The
present research could also be extended by developing
quantitative models of diverse value creation.
Practical implications: The paper sheds light to
sustainability managers in fashion retailers lacking an
overall transparent view of the multi-echelon structure
of the arrangement. Further, the key design attributes
are identified.
Original language | English |
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Title of host publication | The Proceedings of 21st International Symposium on Logistics (ISL 2016) |
Subtitle of host publication | Sustainable Transport and Supply Chain Innovation |
Pages | 419-429 |
Publication status | Published - 2016 |
MoE publication type | B3 Non-refereed article in conference proceedings |
Event | 21st International Symposium on Logistics, ISL 2016: Sustainable Transport and Supply Chain Innovation - Kaohsiung, Taiwan, Province of China Duration: 3 Jul 2016 → 6 Jul 2016 http://www.isl21.org/wp-content/uploads/2016/06/ISL-Proceedings-2016.pdf (Full proceedings) |
Conference
Conference | 21st International Symposium on Logistics, ISL 2016 |
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Abbreviated title | ISL 2016 |
Country/Territory | Taiwan, Province of China |
City | Kaohsiung |
Period | 3/07/16 → 6/07/16 |
Internet address |
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Keywords
- reverse value chain
- value creation
- retail
- clothing