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Creating value through reverse logistics in a multi-echelon used clothing chain
University of Borås, Faculty of Textiles, Engineering and Business. (Textile Management)ORCID iD: 0000-0003-2015-6275
VTT Technical Research Centre of Finland.
University of Borås, Faculty of Textiles, Engineering and Business. (Textile Management)ORCID iD: 0000-0001-7193-5362
Linköping University.
2016 (English)In: Sustainable Transport and Supply Chain Innovation / [ed] K S Pawar and KM Tsai, Kaohsiung, Taiwan, 2016, 419-429 p.Conference paper (Refereed)
Sustainable development
The content falls within the scope of Sustainable Development
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). The literature becomes shallower while discussing the “process” of value 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 constituted 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 reverse clothing value chain context to investigate the take-back scheme that includes multiple actor types and also spans globally. An abductive research process is adopted along two stages; Stage 1 (proposes a new theoretical framework on “how” value is created 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 combining these knowledge.

Data is collected through semi-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 involved with multi-echelon take-back network. 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 of cost-neutral take-back agreement, along with resource and capability complementarities and trust in the relationship. 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 within the used clothing chain.

 

References:

Barney, J., & Clark, D. (2007). Resource-Based Theory: Creating and Sustaining Competitive Advantage. Oxford: Oxford University Press.

Bernon, M., Rossi, S., & Cullen, J. (2011). Retail reverse logistics: a call and grounding framework for research. International Journal of Physical Distribution & Logistics Management, 41(5), 484-510.

Schenkel, M., Caniëls, M., Krikke, H., & van der Laanc, E. (2015). Understanding value creation in closed loop supply chains – Past findings and future directions. Journal of Manufacturing Systems. doi: http://dx.doi.org/10.1016/j.jmsy.2015.04.009

Place, publisher, year, edition, pages
Kaohsiung, Taiwan, 2016. 419-429 p.
Keyword [en]
Value creation, Reverse Logistics, Reverse value chain, Resource-Based View, Relational View, Used Clothing
National Category
Economics and Business
Research subject
Textiles and Fashion (General)
Identifiers
URN: urn:nbn:se:hb:diva-10553OAI: oai:DiVA.org:hb-10553DiVA: diva2:953865
Conference
21st International Symposium on Logistics, Kaohsiung, July 3-6, 2016
Available from: 2016-08-18 Created: 2016-08-18 Last updated: 2017-05-02Bibliographically approved

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Pal, RudrajeetParas, Manoj Kumar
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