Measuring returns management orientation

• Pages: 251-265
• DOI: https://doi.org/10.1108/IJLM-06-2015-0095
• Published date: 08 May 2017
• Date: 08 May 2017
• Author: Haozhe Chen,Kenneth Anselmi,Mauro Falasca,Yu Tian
• Subject Matter: Management science & operations,Logistics

Measuring returns

management orientation

Haozhe Chen

Department of Supply Chain and Information Systems,

College of Business, Iowa State University,

Ames, Iowa, USA

Kenneth Anselmi and Mauro Falasca

Department of Marketing and Supply Chain Management,

College of Business, East Carolina University,

Greenville, North Carolina, USA, and

Yu Tian

Department of Business Administration, School of Business,

Sun Yat-Sen University, Guangzhou, China

Abstract

Purpose –The field of returns management has become an important supply chain management topic.

The purpose of this paper is to develop a conceptualization of returns management orientation (RMO), atopic

that has been largely ignored by the academic community.

Design/methodology/approach –A series of interviews with experts and a review of the literature

were used to develop the construct. Empirical survey data were used to validate the proposed RMO

measurement scale.

Findings –Statistical results su pport the validity and relia bility of the new RMO constru ct.

Different analyses show that the proposed conceptualization satisfies the criteria of the tests for

unidimensionality, construct validity, internal consistency reliability, and nomological validity.

Furthermore, the resu lts of this study confirm t he positive relations hip between a firm’sRMOand

returns management per formance.

Research limitations/implications –The present study provides a starting-point for further empirical

research on returns management from a behavioral perspective.

Practical implications –RMO has a significant impact on returns management performance.

The proposed RMO measurement scale provides a useful tool for companies to evaluate their

management’s emphasis or recognition of the returns management function.

Originality/value –While the field of returns management has gained increased attention from both

academics and practitioners, empirical research efforts on this topic are still limited. In order to address this

issue, this study takes a behavioral perspective and follows a well-established approach to operationalize the

construct of RMO.

Keywords Survey, Reverse logistics, Scale development, Returns management,

Returns management orientation (RMO)

Paper type Research paper

Introduction

The management of returns has become an important topic in the supply chain

management (SCM) literature (Bernon et al., 2013; Narayana et al., 2014; Ravi and

Shankar, 2015). Investigations have been prompted by the magnitude and strategic

implications of returns (Hazen et al., 2012). Guide et al. (2006) reported that the value of

returns exceeds an estimated $100 billion per year and averages 6 percent of revenues.

More recently, Rao et al. (2014) reported that product returns in online retailing can

represent up to 22 percent of sales. US electronics manufacturers alone spend an estimated

$16.7 billion to receive, assess, repair, rebox, restock, and resell product, representing

5 to 6 percent of revenues (Douthit et al., 2011).

The International Journal of

Logistics Management

Vol. 28 No. 2, 2017

pp. 251-265

© Emerald PublishingLimited

0957-4093

DOI 10.1108/IJLM-06-2015-0095

Received 7 June 2015

Revised 27 November 2015

Accepted 5 January 2016

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/0957-4093.htm

251

Returns

management

orientation