Abstract
Purpose of this paper: The purpose of this paper is to
explore the two processes of value creation and
appropriation among companies in a retail reverse
logistics system. 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 retail reverse logistics practices. 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 collectors (clothing retailers) as well as
specialised sorting companies responsible for sorting and
further distribution of the used clothes.
Findings: The retail reverse logistics system in the case
study consists of multiple stakeholders in a complex
network. Different types of values created are
identified, and strategies for value appropriation among
the different companies are discussed. A strong power
position based on knowledge and/or financial strengths is
here identified as a major factor in the value
appropriation process.
Value: The value concept has so far been discussed at a
superficial level in research on retail reverse
logistics. 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): As a company's
resources are limited, companies need to manage the
trade-off between the value creation and appropriation
processes, and strategically find a suitable mix between
them.
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.
Original language | English |
---|---|
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 | 410-418 |
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 |
---|---|
Abbreviated title | ISL 2016 |
Country/Territory | Taiwan, Province of China |
City | Kaohsiung |
Period | 3/07/16 → 6/07/16 |
Internet address |
|
Keywords
- reverse value chain
- value creation
- retail
- clothing