Returns management employee development: antecedents and outcomes

• DOI: https://doi.org/10.1108/IJLM-08-2018-0218
• Published date: 11 November 2019
• Pages: 1016-1038
• Date: 11 November 2019
• Author: Haozhe Chen,Stefan E. Genchev,Geoff Willis,Benjamin Griffis
• Subject Matter: Management science & operations,Logistics

Returns management

employee development:

antecedents and outcomes

Haozhe Chen

Debbie and Jerry Ivy College of Business, Iowa State University, Ames, Iowa, USA

Stefan E. Genchev

University of Central Oklahoma, Edmond, Oklahoma, USA

Geoff Willis

College of Business,

University of Central Oklahoma, Edmond, Oklahoma, USA, and

Benjamin Griffis

Debbie and Jerry Ivy College of Business, Iowa State University, Ames, Iowa, USA

Abstract

Purpose –The purpose of this paper is to empirically investigate the antecedents and impacts of a largely

overlooked concept, employee development, within the challenging area of returns management.

Design/methodology/approach –The proposed relationships are validated through structural equation

modeling analysis with survey data collected in India.

Findings –Combining the ability–motivation–opportunity model in human resource management and the

theoretical tenets associated with dynamic capabilities, the authors confirmed that supply chain learning,

returns management orientation and information support are important antecedents of returns management

employee development. In turn, the findings suggest that, as a dynamic capability, returns management

employee development positively impacts a firm’s returns management and market performance.

Practical implications –To successfully tackle the challenges related to handling returns, companies must

focus their resources not only on new technologies and related processes, but also on employee training and

development as well.

Originality/value –Although recruiting and retaining talent in supply chain management has long been

recognized as a serious global challenge, no previous research has empirically studied employee development

practices in the returns management context.

Keywords India, Survey, Information technology, Reverse logistics

Paper type Research paper

1. Introduction

Today’s consumers –especially those purchasing online –expect the purchasing process to

be a “breeze.”Unfortunately, in many instances, the process is extended because a consumer

decides he/she does not like the product or there are problems (damage, incorrect item, etc.).

The seller must then accommodate a return request. For companies looking to secure

long-term success and customer satisfaction/loyalty, it is imperative that they realize the

importance of efficiently handling returned merchandise in a way that is viewed as virtually

effortless by the customer. This is supported by a UPS survey of consumers that found,

“Returns can be a deal-breaker […] 48% (of consumers) would drop a retailer with a less-

than-easy returns process”(Gooley, 2013, p. 44).

Reverse logistics refers to the efficient, cost-effective flow of raw materials, in-process

inventory, finished goods and related information from point of consumption to point of origin

for the purpose of recapturing value or for proper disposal (Rogers and Tibben-Lembke, 1998).

Both practitioners and academics have gradually realized the critical importance of effective

reverse logistics and have argued it can be a value center (Wang et al., 2017). Our focus is on

The International Journal of

Logistics Management

Vol. 30 No. 4, 2019

pp. 1016-1038

© Emerald PublishingLimited

0957-4093

DOI 10.1108/IJLM-08-2018-0218

Received 31 August 2018

Revised 19 June 2019

7 September 2019

13 October 2019

Accepted 17 October 2019

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

www.emeraldinsight.com/0957-4093.htm

1016

IJLM

30,4

one of the key processes within reverse logistics –returns management (Croxton et al., 2001;

Zhou et al., 2011). The returns management process includes the activities necessary to handle

the reverse flow of goods from customers. The importance of employees and job performance in

the supply chain context is widely recognized (e.g. Ellinger et al., 2008, 2010; Swart et al., 2012;

Kane Is Able, 2014), but there is still a significant need for human resource management in the

supply chain management context (Fisher et al., 2010; Flöthmann et al., 2017) . We believe that

employee development is particularly important for returns management due to the

challenging nature of the tasks and responsibilities involved. This notion is supported by

Govindan and Bouzon’s (2018) framework, which identified employees not only as stakeholders

but also as drivers of reverse logistics’successful implementation. While much has been written

on returns management, little research attention has been given to returns management

employees. The current study is undertaken to address this important research void.

Strategic human resource management research increasingly focuses on human

resource systems rather than single practices. The current study thus draws upon the

ability–motivation–opportunity (AMO) model of human resource management and explores

the antecedents of effective returns management employee development ( Jiang et al., 2012;

Boon et al., 2019). According to the AMO literature, ability refers to skill-enhancing practices

that are designed to foster skilled, capable employees; motivation refers to practices that

provide stimulus to employees to perform their job with more enthusiasm; and opportunity

denotes practices that facilitate employees’effort in achieving organizational objectives

(Lepak et al., 2006; Liao et al., 2009). In line with the AMO model, we select and examine three

antecedents in the returns management context: supply chain learning as an ability, returns

management orientation as a motivation and returns management information support as

an opportunity. It is proposed that these three antecedents encompass both internal and

external (supply chain) perspectives that provide the foundation for a formalized system to

develop returns management employees and that will ultimately impact firm performance

through creating happy customers and improving efficiency.

The first antecedent, supply chain learning, focuses on “knowledge applied to facilitate

exchange within supply chains”(Claycomb et al., 2001; Spekman et al.,2002).Returns

management employees must deal with the uncertainties associated with product returns in

terms of quantity, condition, timing, etc., and supply chain learning ability can be expected to be

a factor relevant to these employees’ability to perform their tasks effectively and efficiently.

Supply chain learning could include knowledge exchange between a firm and its suppliers,

customers, distributors or other supply chain parties such as service providers (Flint et al., 2008).

Within the returns management context this would include, but not be limited to, understanding

customer expectations as to how they want to be able to return product, what constitutes an

acceptable level of effort necessary to make a return, length of time to process a return, etc.

Our second antecedent is returns management orientation, which refers to the guiding

philosophy or approach whereby a fi rm recognizes the importance that returns

management has to overall business performance (Mai et al., 2012). Returns necessitate

extra, time-consuming but critical steps. How post-purchase returns issues are handled is

important to customers. An easy return process can have a huge impact on repeat sales

(Burnson, 2014). At the other extreme, poor service or complicated requirements can lose

customers. Therefore, highly motivated returns management employees are crucial for

successfully performing these tasks. A firm’s orientation toward returns management

determines its resource commitment to this area and thus it could have a significant

influence on its returns management employees’motivation as well.

Our final antecedent, returns management information support, presents an opportunity

and a tool forreturns management employees to effectivelydeal with the complexityand sheer

volume of returns. Jack et al. (2009) highlighted the importance of developing information

system capabilities to supportreverse logistics and returns. Similarly,Terry (2014) noted that

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Returns

management

employee

development