Natural resource scarcity and the closed‐loop supply chain: a resource‐advantage view

Abstract

PurposeThis research aims to provide a theoretical framework for exploring how firms can respond to the growing threat of natural resource scarcity. Specifically, the role of closed‐loop supply chain management is examined as a means for creating resource advantages that can lead to marketplace competitive advantages.Design/methodology/approachThe research extends previous theoretical research, integrating natural resource scarcity and closed‐loop supply chain management for the first time. Resource‐advantage theory is employed as the theoretical lens for the research model and propositions.FindingsThe findings deepen understanding of the forces that create natural resource scarcity conditions in the supply chain, and highlight the need for higher order closed‐loop capabilities that have the ability to mitigate natural resource scarcity.Research limitations/implicationsThe theoretical model and six research propositions suggest relationships between natural resource scarcity, closed‐loop capabilities, and firm level performance that need to be tested empirically. Future research opportunities and methodologies are suggested.Practical implicationsGrowing natural resource scarcity is already having a major impact on many firms and industries; therefore, this research has significant managerial implications due to supply risks and potential disruptions caused by insufficient natural resources in current and future supply chains.Originality/valueThis paper seeks to increase discussion about natural resource scarcity and bring it into focus as a relevant supply chain topic related to closed‐loop supply chain capabilities and the internal firm level resources needed to ensure performance in a changing world.