Value creation through reverse logistics in used clothing networks

Abstract

Purpose The purpose of this paper is to identify the major reverse logistics design aspects in used clothing value chains, and those enabling and challenging manifestation of value creation. Design/methodology/approach This research is based on an exploratory study of 12 established organizations in Swedish used clothing networks. Data were gathered through semi-structured interviews, secondary sources, and subsequent field visits. Findings Empirical insights on how various design aspects influence value creation in used clothing value chains are provided. Crucial among these are strategic and consistent collection, presence of multi-channel sales, and communication of post-retail concepts for manifesting value by bolstering consumer satisfaction, environmental motivation, and corporate image. Inter-organizational collaboration in reverse logistics processes and workplace training, further renders higher economic, environmental and information values. Research limitations/implications The paper proposes a holistic framework of design aspects in reverse value chains, and extends existing knowledge on how these aspects manifest value creation. By doing so, a nuanced view of the design aspects is offered by highlighting how they can differentially, either enable, or challenge value creation. In this connection, seven supporting propositions are developed for in-depth future research. Practical implications The paper includes implications for the devising strategic solutions for higher value creation, by understanding of the key enablers and challenges, for many actors in the used clothing networks. Originality/value The role of various design aspects in reverse value chains for manifesting multifaceted stakeholder value creation is explicitly defined in the paper.