The impact of reverse logistics process coordination on third party relationship quality: A moderated mediation model for multichannel retailers in the fashion industry

Abstract

Multichannel retailing is a widely adopted strategy in the fashion industry. Companies in this industry find it a source of competitive advantage to invest in reverse logistics infrastructure. However, limited empirical studies investigate the enablers of the relationship quality between the retailers and their reverse logistics service providers. This study quantifies the impact of reverse logistics process coordination between retailers and logistics service providers on relationship quality. Moreover, it tests the mediating role of reverse logistics service quality and the moderating role of conflict frequency in this relationship. Data were collected through a survey using a purposive sample of 241 retail store managers from the fashion retail industry of Pakistan. For this purpose, a self-administered questionnaire was developed using a five-point Likert Scale to gauge the responses. Conditional process analysis was used to evaluate the moderated mediation model. The findings showed a significant positive impact of reverse logistics process coordination on the relationship quality with a logistics service provider, a significant positive mediation effect of reverse logistics service quality, and a significant moderation effect of conflict frequency on the indirect relationship. However, conflict frequency, contrary to the hypothesis in the study, strengthened the indirect relationship. Furthermore, the moderation effect of conflict frequency on the direct relationship was insignificant. This study will help managers better understand the best practices leading to effective management of reverse logistics processes, particularly product returns.