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Multidimensional value creation through different reverse supply chain relationships in used clothing sector

Rudrajeet Pal (Department of Business Administration and Textile Management, University of Borås, Borås, Sweden)
Erik Sandberg (Department of Management and Engineering, Linkopings Universitet, Linkoping, Sweden)
Manoj Kumar Paras (Department of Business Administration and Textile Management, University of Borås, Borås, Sweden)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 11 October 2019

Issue publication date: 21 October 2019

1182

Abstract

Purpose

This paper aims to purport deeper understanding of, and instigate theoretical elaboration to, multidimensional value created through different reverse supply chain (RSC) relationships.

Design/methodology/approach

By capturing the relationships (and their differences) constituted and embedded in three “extreme” case studies from global used clothing supply chain, the sources of multidimensional values are explored in line with Dyer and Singh’s (1998) relational theory.

Findings

In the RSC, when downstream relationships are typically more opportunistic, value is created using inter-personal ways of knowledge sharing and through use of informal safeguards. In contrast, the upstream RSC relationships are more symbiotic, and value is created through more seamless (and routinized) knowledge sharing practices, and additional use of more formal transaction-specific controls or financial incentives as safeguarding instruments.

Research limitations/implications

The use of consolidated case studies may affect the consistency in the findings presented. Another limitation relates to deriving propositions per each source presented in relational theory.

Practical implications

Practitioners particularly from industries whose global RSCs include different natures of relationships and multiple value incentives can be benefited through this study.

Originality/value

The paper extends the original sources of value creation prescribed in relational theory by contextualizing them in RSCs. It depicts how multidimensional values are created relationally by dyadic partners as the nature of relationship differs between upstream and downstream.

Keywords

Acknowledgements

The research has been partly conducted under the funding from Re:textile (http://retextile.se/), an initiative taken by the Region of West Sweden. Author would like to thank the funding agency for the financial support. Within the project another published paper, Sandberg et al. (2018) complement this research by drawing on similar dataset (interviews, observations); however, with different theoretical lenses, unit of analyses and research strategy, they conclude and contribute in different ways.

Citation

Pal, R., Sandberg, E. and Paras, M.K. (2019), "Multidimensional value creation through different reverse supply chain relationships in used clothing sector", Supply Chain Management, Vol. 24 No. 6, pp. 729-747. https://doi.org/10.1108/SCM-12-2018-0422

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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