Chapter 7: The Final Phase Research
7.4 Cross-Case Analysis
7.4.8 Drivers and Barriers
As summarised in Table 7.27, firms were found to be driven to go through the process of RL either by economic gain or economic savings, and there were no other motivational aspects found other than economic ones. As the owner of Firm E said: ‘We all do this for either earning or saving
money really…’ (Owner, Firm E). Firms also revealed that they become involved in RL activities
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Drivers Economic Economic Gain A, B, C, D, E, F
Economic Saving A, B, C, D, E, F
Barriers Size of the business Not enough Knowledge A, B, C, D, E, F
Confusion responsibility A, B, C, E
Not important A, B, C, D, E
Time constraint A, B, D, E, F
Other resource constraint A, C, E, F
Informal behaviour A, B, C, D, E, F
Reluctant behaviour E
Small volume small impact A, B, D
No reporting E
Short sightedness A, B, C, D, E
No supplier assistance No full supplier assistance A, B, C, D, E, F
Supplier as burden A, B, C, F
Nature of product A, B, C, F
Weak policy formulation A, B, C, D, E, F
Sensitive issue A, B, C, D, E, F
Confusing issue A, B, C, D, E, F
Customer Customer preference E
Age of the business D
Company policy A, B, C, D, E. F
Table 7.27 Drivers and Barriers of Reverse Logistics
Consequently, all the studied firms were found using various resources to build and develop the capability required to process RL, but the goal was either economic gain or economic savings. In some cases, they either did not have the knowledge, or just ignored the benefits attached to RL, which prohibited them from becoming involved in the process of RL. For instance, none of the firms had any knowledge about take-back legislation, and none of the firms besides Firm B knew about the benefits of ‘own initiative’ take-back. For instance, Firms A, C and F were expected to have knowledge on used battery take-back legislation, as they all sold batteries which by law had to be taken back. Studied firms also did not have knowledge about other benefits apart from economic benefit for using their own initiative to take back goods. For instance, Firm D took the initiative of taking used and second-hand goods back from the public, but they did this only for economic gain. This act, however, could not provide them with environmental related benefits, as Firm D did not have knowledge about this. Studied firms being unaware of ‘take-back law’ or not having ‘own initiative take back’ provision were also likely to remain barred from its benefit. As Table 7.27 depicts, this means that firms also faced various barriers which prohibited them from going through the process of RL, hence prohibiting them from developing the associated
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capabilities. This factor also affected the way they addressed the related costs. Apart from other barriers explained in Table 7.27, characteristics related to small size businesses were one of the dominant barriers the firms faced. Not having enough knowledge on the various aspects of the process was a barrier found in all firms, which was related to their small size. For instance, all of the firms had the knowledge of economic drivers but were unaware of other drivers, which again prohibited them to collect goods in other categories like legislative or take their own initiation to collect goods. Likewise, none of the firms had precise knowledge on aspects such as: the volume of accumulation; time required; disposal options; maintaining relationships with suppliers; and using precautionary measures. Firms A, B, and D spoke about having a relatively small volume of goods which did not motivate them enough to go through this process. Likewise, not being important was a barrier identified in all firms. For instance, the firms did not keep proper records of the goods because this was not an important task for them. The nature of the goods was found as another barrier to the process of RL for Firms A, B, and F, as Firm A could not fully use the disposal option because of the short date and perishable nature of their goods. Firm B and F, who dealt with electronic and electrical goods, also could not use all the disposal options, due to the health risks attached to their products. It was also revealed that not enough cooperation from the suppliers was another barrier faced by almost all firms, as most of the suppliers did not provide any other assistance besides what was mentioned in the standard terms and conditions. The terms and conditions also offered much less for almost all firms. Nevertheless, customer preference was another barrier, as customers of Firms A, C and D did not want to bring the goods back for repair, but rather wanted to exchange for any damages and breakages. The policy of the firm did not allow the businesses to develop the required capabilities. For instance, with the exception of Firm B, none of the firms had a policy of taking back used goods, which is another barrier to reversing logistics in the studied businesses.
7.5 Summary
The core aim of this chapter was to present and analyse the final phase research conducted for this study, using both within-case and cross-case analysis. The way the identified themes have been used to answer the research question is presented in the comprehensive analysis framework, as in Figure 7.1. An explanation of these themes to address the capabilities and cost of RL for the studied MBs has been elucidated. This chapter, as presented in Appendix I, has also identified and analysed the core emerging themes for this study.
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Resources and Capabilities used by the Studied Businesses to Build Reverse Logistics Capabilities, with Reasons for Using these Resources
Firms using Resources and
Capabilities
A B C D E F
Capability to go through the process of reversing the logistics
Goods accumulation x x x x x x
Transportation or moving x x x x x x
Warehousing/storage x x x x x x
Sorting/selecting/inspecting x x x x x x
Using the disposal options x x x x x x
Tacit knowledge gained from past experiences
To understand the goods accumulation in various categories with its reasons x x x x x x To understand the reasons for keeping the permanent record of the goods accumulated
in the reverse channel
x To understand the reasons for keeping temporary records of the goods accumulated in the reverse channel
x x x x x
To speculate the volume of goods accumulation x x x x x x
To understand how and why to use the precautionary measures x x x x x x
For know-how in transporting and moving goods from one place to the other x x x x x x
For know-how in warehousing and storing the goods x x x x x x
For sorting/sorting/selecting/inspecting x x x x x x
For understanding and using/choosing the disposal option x x x x x x
To understand how and why to use the supply chain relationship x x x x x x
To understand how and why to speculate the time required x x x x x x
Time
In transporting and moving /goods from one place to the other x x x x x x
In warehousing and storing the goods x x x x x x
For sorting selecting and inspecting x x x x x x
For using the disposal option x x x x x x
Effort
In transporting and moving /goods from one place to the other x x x x x x
In warehousing and storing the goods x x x x x x
For sorting selecting and inspecting x x x x x x
For using the disposal option x x x x x x
Private transport system
In transporting and moving goods from one place to another x x x x x
Business transport system
In transporting and moving goods from one place to the other x
Supply Chain Relationship
In transporting and moving good to the suppliers’ place x x x x
For warehousing and storing the accumulations x
For sorting/selecting/inspection x x
For using as the disposal option x x x x x x
Storage space
For warehousing/storing the accumulations x x x x x x
Space for bin
To place the bin x x x x x x
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For sorting selecting and inspecting x
For disposal (repairing and refurbishing) x
Information
To inform the suppliers about the accumulation for compensation x x x x x x
Physical attribute - phone
To send information to the suppliers about the accumulation x x x x x
Physical attribute - computer
To send information to the suppliers about the accumulation x x x
Physical attribute - picture taking device
To take pictures to upload in the web channels like Facebook, eBay, Amazon, Gumtree and Website
x x
Physical attributes - Sellotape, staples
For minor repairing and refurbishing x x
Physical attributes - pen and paper
For writing the reduced price and stick this in the product x x x x x x
For writing the temporary/permanent record of the goods accumulation x x x x x
Physical attributes - tools/equipment or spare parts
For repairing and refurbishing x
Physical attribute bin and bin bag x x x x x x
External entity - paid bin man
To pick up the discarded goods x x x x
Cleaners
To clean and police the used and second-hand goods x
Other contact of companies/wholesalers
For purchasing spare parts for repairing and refurbishing x
Online channels - eBay or Amazon for spare parts
For purchasing spare parts for repairing and refurbishing x
Charitable organisations
To give away their year-long accumulation to the charity x
Scrap people (informal recyclers and dismantlers)
To give away the discarded home appliances to these people x
Money
To invest in the other channels like Facebook, Website, eBay, Amazon and Gumtree x x Illegitimate behaviour
To store the accumulation in the loft without the consent of the landlord x
Informal behaviour
To give away discarded home appliances to scrap people who would handle this informally
x Unethical behaviour
To use the disposal option by selling the customer return goods as new x x x x x x
Excessive precaution/prevention behaviour
To use a very tight return policy x x x x x x
Opportunistic economic and social behaviour
To make Personal use and office use of the goods for economic gain, and, to give discarded goods to friends and family for social recognition
x x x x x
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The core emerging themes are related to the identified key/main themes, but provide an opulent, more nuanced view of processing RL in the studied businesses. The explanation of all these aspects is accompanied with some relevant self-explanatory and comprehensive tables, figures and appendices.
As presented in Table 7.16, all the studied businesses have goods accumulation in various categories which need to be processed for value extraction, management, or disposal. As shown in Tables 7.3, 7.5, 7.7 ,7.9, 7.11 and 7.13 of this chapter, all of the firms were involved in the process of RL. As demonstrated in Figure 7.1 and as summarised in Table 7.28, which is also explained in Section 7.4.1 to 7.4.7, the studied firms used both tangible and intangible resources to build and develop their capabilities. Nevertheless, there were some resources and capabilities used by the studied firms which were business- or product-specific; for example, Firm B being the only firm to collect, repair and refurbish used and second-hand goods used external resources like cleaners and expert engineers. As demonstrated in Appendix I, and as explained in this chapter, some of the resources and capabilities used by the studied firms have emerged as newly emerging themes. Tacit knowledge gained from past experiences, owner/managers’ time and effort, and supply chain relationships were found to be the dominant resources used to build RL capabilities. In some cases, the studied firms were found to be fully, partially, or not at all capable of completing the process of RL. As summarised in Table 7.28, firms have explored and recognised various resources to build capabilities, however there are differences in the way they have explored and used these capabilities. For instance, Firm E was one of the firms who had meaningfully recognised and explored the supply chain relationship to build capabilities related to RL, whereas other firms were yet to do so. Again, firms were found to use capabilities such as informal, illegitimate, unethical and unsustainable behaviours as resources to build capabilities. Overall, this finding acknowledges that the studied firms developed the capabilities for RL in their own unique way, and shows that they may not have all the necessary capabilities. Nevertheless, the way these businesses have identified and used resources to build RL capabilities may need further development and refinement.
Furthermore, the nature and situation of the studied businesses have again affected the way they address/perceive the cost of RL. The studied firms’ priority, due to their small size and resource constrained nature, was to use various approaches to avoid costs. However, they also found ways
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to avoid or reduce the costs without realising the long-term adverse consequences. Studied firms were also found not having the capability to know all the costs, and that some of the costs remained hidden from them.Costs remaining hidden from the firms or the firms failing to see the long term adverse consequences of reducing the costs had the potential to bring adverse consequences in the long term.Overall, firms not being able to analyze all the cost facets of RL in a holistic manner has prohibited them to make a rational and optimal cost decision.
Nevertheless, the fact that firms fail to see any other benefit from getting involved in RL other than for economic gain has prohibited them from building and developing the required capabilities in an effective and efficient manner.This situation, again, has prohibited them from acquiring the related benefits, as firms worked on gaining economic benefit but they were unaware that the RL capabilities also had the potential to bring environmental related benefits. Firms need to understand the other drivers of RL, other than just the economic benefit attached to it. Firms also need to work on the barriers if they want to fully utilise the existing capabilities or explore and build new capabilities. This attitude will not only help firms to further develop and explore the new capabilities but will also help in acquiring the related benefits. Nonetheless this attitude will also help the studied businesses to address the cost in the most optimal way.
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