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

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.