Learning-based dynamic capabilities in closed-loop supply chains: an expert study

Purpose Product returns information gives firms an opportunity for continuous strategic adaptation by allowing them to understand the reasons for product returns, learning from them and improving their products and processes accordingly. By applying the Dynamic Capabilities (DCs) view in the context of closed-loop supply chains (CLSC), this study explores how firms can continuously learn from product returns information.Design/methodology/approach This study adopts a qualitative Delphi study-inspired approach. Experts from industry and academia are interviewed in two interview rounds. First round of interviews are based on extant research, while the second round allows the experts to elaborate and correct the results.Findings This study culminates into a conceptual model for incremental learning from product returns information. The results indicate incremental learning from product returns can potentially lead to a competitive advantage. Additionally, the authors identify the sources of information, capabilities along with their microfoundations and the manifestations of product return information. Three propositions are formulated embedding the findings in DC theory.Research limitations/implications This study supports extant literature in confirming the value of product returns information and opens concrete avenues for research by providing several propositions.Practical implications This research elucidates the practices, processes and resources required for firms to utilize product returns information for continuous strategic adaptation. Practitioners can use these results while implementing continuous learning practices in their organizations.Originality/value This study presents the first systematic framework for incremental learning from product returns information. The authors apply the DC framework to a new functional domain, namely CLSC management and product returns management. Furthermore, the authors offer a concrete example of how organizational learning and DC intersect, thus advancing DC theoretical knowledge.

Commercial Product Returns

The increasing use of online shopping has escalated product returns and consequently the importance of their management. In parallel, the increasing scholarly interest on the subject is reflected in the number of publications. In such fast-growing research fields, mapping the whole research activity is useful in highlighting research areas that could provide a better knowledge accumulation in the field. With this aim, this chapter conducts co-citation and co-word analysis to identify future research directions. According to results, there is a need for future research to investigate 1) the consumer reaction when the service level received conflicts with the retailer environment (un)friendly operations, 2) the impacts of retailer return policies on their reverse logistics management, 3) the implementation difficulties of handling omni-channel returns in different organizational structures, and 4) the effectiveness of technological tools and applications used to avoid returns. This chapter also discusses the implications of COVID-19 on the commercial product returns research.

Product Returns: An Opportunity to Shift towards an Access-Based Economy?

With the rise in online purchases, returns polices have become more lenient to maximise sales, leading to increased product returns. This results in considerable costs to businesses due to complex returns systems, and environmental costs due to unnecessary transportation and waste. Unsustainable consumption poses a threat to our environment, and access-based business models whereby products are borrowed/rented rather than purchased have been proposed as a way to align customer needs, business success, and sustainability. Product returns often constitute a form of informal or illegitimate borrowing, as goods are bought with the intention of being returned. In this discussion paper we propose that, instead of being viewed as a threat to business, issues with high product returns could be seen as an opportunity to switch to an access-based model. As product returns escalate, businesses will need to invest substantially in their reverse supply chains. We propose that a more strategic approach might be to leapfrog the costly stage of developing more efficient returns systems, and move straight to formalising product returns as the new normal for those goods that would best suit an access-based model, so that processes are streamlined around borrowing and returning rather than around sales.

The Influence of Substituting Prices, Product Returns, and Service Quality on Repurchase Intention

The textile industry is production-intensive and incorporates diverse transactions made by multiple suppliers, corporate buyers, and supply chain members. In the business-to-business context, the cost for attracting a new customer is notably much higher than that needed to retain a present one. Customer loyalty in terms of customer repurchase intention has, therefore, been considered as a key determinant for textile companies to improve their efficiency and competitive advantage. This study aims to investigate the business-to-business repurchase intentions of Pakistan textile and clothing industry customers. The study framework specifically consolidates the mutual dynamics of appealing (service quality), facilitating (product returns), and averting (switching costs) factors altogether and the effect of these variables on customer satisfaction and thus on customer retention (repurchase intent) in the textile’s transactional scenario. A sample survey method is used for this study. The data collected through self-administered questionnaires (n = 325) from All Pakistan Textile Mills Association enlisted the employees of the companies. The structural equational modeling technique was applied to examine the study hypotheses. The findings contended that service quality and switching costs are essential determinants that shape the repurchase intentions. Therefore, product returns do not contribute toward customer satisfaction and also do not shape the intentions of business-to-business customers to repurchase from the same supplier after having even a good product return experience in past.

Intertemporal Product Management with Strategic Consumers: The Value of Defective Product Returns

Problem definition: An increased incidence of quality issues, resulting in defective product returns (DPRs), is a concern for firms bringing innovative products to market. Although a firm can recover value from DPRs through refurbishing, consumers are known to act strategically in anticipation of the future availability of refurbished units. We study a firm’s strategy for offering a new product and refurbished DPRs to strategic consumers across time. Academic/practical relevance: Aided by emerging shopping tools, an increasing number of consumers consider buying refurbished versions of products rather than their new counterparts. A novel contribution of our work is the recognition of the refurbishing of DPRs as a possible solution to the time inconsistency problem that arises when a firm offers products to strategic consumers across time. We characterize how the product line decisions and profit of the firm are influenced by the defect rate, the perceived quality of refurbished DPRs, and consumers’ hassle cost of returns. Methodology: We develop a two-period game-theoretic model to characterize the firm offering the new product and refurbished DPRs to strategic consumers across time. Results: The refurbishing of DPRs helps the firm implicitly commit to limiting the quantity of the new product offered in the future, allowing the firm to charge a premium for the new product today. As a result, firm profit may even increase with the defect rate. These results persist across various model extensions. Managerial implications: Whereas the firm’s profit is the highest when there are no defects, opportunities to achieve marginal reductions in defect rates may not be worth the investment and may even be counterproductive. Also, efforts toward enhancing the perceived quality of the refurbished product or decreasing the hassle cost for consumers may better serve the firm than efforts toward marginally improving defect rates.

A systematic review of e-tail product returns and an agenda for future research

PurposeThis study conducts a systematic literature review of e-tail product returns research. E-tail product returns are essentially acquisition of products that have been sold through purely online or brick-and-click channels and then returned by consumer to business.Design/methodology/approachUsing a systematic literature review protocol, we identified 75 peer-reviewed articles on e-tail product returns, conducted bibliometric analysis and content analysis of the articles and summarised our findings.FindingsThe findings reveal that the subject of e-tail returns is a new research area; academics have started to investigate several aspects of e-tail returns through different research methodologies and theoretical foundations. Further research is required in leading e-commerce countries and on key areas such as omni-channel returns management, customer satisfaction and service, the impact of resources such as people skills, the benefits of technology and IT systems in managing e-tail returns.Practical implicationsThe study offers a summative account of current e-tail knowledge areas, which can serve as a reference guide for e-tailers to develop strategies for more efficient and competitive product returns.Originality/valueThis study contributes theoretically by developing clusters of key themes or knowledge areas about e-tail returns. It also provides a conceptual framework for e-tail returns management, which can be used as a springboard for further empirical research.