Exploring value creation and appropriation in the reverse clothing supply chain

Abstract

PurposeThe purpose of this paper is to explore the processes of value creation and appropriation among companies in a reverse clothing supply chain.Design/methodology/approachThis research is based on an inductive case study approach at fashion retailers, charity organisations, commercial recyclers, and specialised sorting companies involved in take-back schemes for used clothes in the reverse clothing supply chain.FindingsValue creation and appropriation processes are illustrated for different members of the reverse clothing supply chain. Results of different types of value and value co-creation explain the relatively high degree of collaboration among members in the “beginning” of the reverse supply chain. Here, collaboration outmanoeuvres the traditional value appropriation mechanism of price negotiation.Research limitations/implicationsThis research does not cover all tiers in this global industry, and practices among different regions may hamper the generalisability of the findings presented.Practical implicationsThis research allows a comprehensive picture of the members in the reverse clothing supply chain and outlines some of the major processes involved, decisive for value creation, and appropriation.Originality/valueThe research draws upon the value concept and combines processes of value creation and appropriation in one, single empirical study. By doing that, the research disseminates the reverse clothing supply chain in a new way and facilitates improved understanding of the structure and rationales for members taking part in it.