Moderated influence of return frequency and resource commitment on information systems and reverse logistics strategic performance

Abstract

Purpose Reverse logistics (RL) is a strategic instrument across industries. The rapid evolution of online marketplaces has led to frequent product returns with variations across diversified businesses. These marketplaces have caused potential losses due to fraudulent returns, hence requiring a commitment of resources to RL. With information systems (IS) playing a role in improved supply chain performance, the purpose of this paper is to analyse the impact of a conceptualized IS framework on achieving RL strategic outcomes, under the individual moderating influence of resource commitment (RC) and return frequency. Design/methodology/approach Data have been collected through a questionnaire from top to middle management executives managing the supply chain, logistics and IS. Moderated regression analysis was conducted on the collected sample using Hayes’ (2013) process modeling. Findings The study depicts that IS capability, IS for logistics, IS partnership quality and IS for value addition lead to RL strategic benefits. Also, return frequency and RC act as relatively strong moderators with a negative impact. When analyzed for the individual IS constructs, RC has a stronger moderating impact than return frequency. Practical implications The IS usage framework can be used effectively by practitioners for enhancing strategic RL performances depending on variations in committed resources and return frequency for individual industries. Originality/value The study proposes an IS usage framework for achieving enhanced RL strategic outcomes and emphasizes on the moderating role played by RC and return frequency for producing the results.