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Developing a framework for the performance evaluation of sorting and grading firms of used clothing
University of Borås, Faculty of Textiles, Engineering and Business. (Textile Value Chain Management)ORCID iD: 0000-0001-7193-5362
University of Borås, Faculty of Textiles, Engineering and Business. (Textile Value Chain Management)ORCID iD: 0000-0003-0871-1838
University of Borås, Faculty of Textiles, Engineering and Business. (Textile Value Chain Management)ORCID iD: 0000-0003-2015-6275
2018 (English)In: Journal of Global Operations and Strategic Sourcing, ISSN 2398-5364Article in journal (Refereed) Epub ahead of print
Sustainable development
According to the author(s), the content of this publication falls within the area of sustainable development.
Abstract [en]

Purpose

This paper aims to propose a framework for evaluating the performance of reverse value chain activities in the clothing industry operating at base of the pyramid. Specifically, the research explores firm and supply chain factors influencing clothing reverse value chain activities with a focus on developing economies.

Design/methodology/approach

The study adopted an explorative technique using direct observations and semi-structured interviews to collect information from eight companies and two traders. Internal resources and value chain capabilities were examined using theoretical underpinnings of resource-based view, transaction cost economics and base of the pyramid.

Findings

The paper identified multiple benefits of offshoring reverse value chain activities to the developing countries (at the base of the pyramid). Low operation cost, skilled manpower, business knowledge and location are found to be internal success factors. While favourable government legislation and domestic recycling markets are important external factors contributing to the success. Developing economies such as India contribute to firm performance by integrating, transforming, acquiring and co-creating the resources at base of the pyramid. Further, it was found that to achieve higher assets specificity, a few companies have opened their own shops in African countries, while others have opened sourcing branches in Canada or the USA to ensure good quality of raw materials. Collaboration and coordination among different value chain partners minimise cost and increases profitability. Innovation in the process such as clothes mutilation for recycling has created new business opportunities.

Research limitations/implications

Information was collected from only eight organisations and two traders from India. Future scholars may extend the research to generalise the findings by documenting similar phenomena.

Practical implications

The proposed framework can serve a basis for the practitioners to evaluate firm performance, and the insights can be used to achieve sustainability by engaging producers, employees, consumers and community using base of the pyramid approach.

Originality/value

The study provides unique insights into the prevalent export and re-exports phenomena of used clothing. The resource-based view, transaction cost economics and base of the pyramid strategy underpinned together to develop a framework for understanding reverse value chain activities of clothing.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2018.
Keywords [en]
Qualitative, Clothing industry, Base of the pyramid, Firms performance framework, Sorting and grading, Reverse value chain
National Category
Economics and Business
Research subject
Business and IT; Textiles and Fashion (General)
Identifiers
URN: urn:nbn:se:hb:diva-15467DOI: 10.1108/JGOSS-11-2017-0047Scopus ID: 2-s2.0-85055088071OAI: oai:DiVA.org:hb-15467DiVA, id: diva2:1271069
Projects
Erasmus Mundus joint doctoral programme (SMDTex)” funded by the European CommissionAvailable from: 2018-12-15 Created: 2018-12-15 Last updated: 2019-01-03Bibliographically approved

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Paras, Manoj KumarEkwall, DanielPal, Rudrajeet

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