Towards returns management strategies in internet retailing

The digital transformation of the retailing industry in recent years has had a profound effect on consumers’ behaviour on a global scale. When shopping and browsing online, consumers are not able to “touch and feel”, which means that product returns are inevitable. The fashion industry has particularly suffered from high return rates, which fluctuate between 30% and 50%. The industry has been struggling to strike a balance between competitive customer service, profitability and company sustainability targets.Against this backdrop, the purpose of this thesis is to contribute to the development of returns management strategies in internet retailing. Returns management in an online environment encapsulates both the return policy and the return process. The former has an impact on consumers, whilst the latter refers to the company itself. Four studies provide evidence to serve the purpose of the thesis. First, the author investigates how the return policy affects purchase decisions (Study I and Study II) and second, how internet retailers manage their return processes (Study III). Finally, the author sheds light on the way effective strategies for returns management can be established (Study IV).Two quantitative studies and two qualitative studies were conducted. More specifically, in Study I and Study II, data were collected from consumers through an online survey. Study III followed an exploratory multiple case study design, while in Study IV, data were collected through a confirmatory multiple case study.The findings of this thesis have significant implications for theory and practice. This research extends the returns management literature by uncovering mediating and moderating mechanisms of interest. The notion of fit between returns management and business intent can prove to be a valuable tool with extensive applicability to a wide range of returns-related decisions. This research also presents an array of identified misalignments that can assist supply chain managers in designing effective and robust returns management strategies in the internet retailing domain

Effect of strategic orientation on innovation and performance : the case of multiple channel retailing (MCR)

Over the past decade technological, administrative and marketing innovations have grown at unprecedented rates in the retail industry. Among this wave of innovation, no single technology has generated as much interest as the phenomenon of multiple channel retailing (MCR). MCR is the practice of distributing goods to consumers through both traditional brick-and-mortar outlets and through the Internet channel. Though many retailers jumped on the early MCR bandwagon, a number of large players have scaled back their Internet operations over the past two years (Sheraga, 2001). The current research uses Organizational Diffusion of Innovations (ODI) theory to examine the determinants of MCR adoption within this industry. Previous research into ODI phenomena has not delved deeply into the influence of competitor behavior on organizational adoption decisions. The current research considers the effect of firm strategy on MCR innovation and firm performance in the domestic retail industry. The Miles and Snow strategic typology is used as the theoretical basis for the strategy concept. A network of hypotheses is posited based on the extant ODI literature, the Miles and Snow theory and the current state of MCR diffusion. Hypotheses are tested using field data collected through a mail survey. Data were collected from key informants inside domestic retail chains (N = 102). Multivariate Analysis of Covariance (MANCOVA) suggests that strategic orientation is related to innovation among U.S. retail firms. This relationship is significant while adjusting for an organizational size covariate. Results also suggest that the Miles and Snow typology is effective in explaining strategic contingencies in the retail context. Implications and research directions for theory and practice are offered

Extension and validation of the consumption value theory with specific reference to the patronage of shopping centres

D.Com. (Marketing)Study Objectives The primary objective of this study was to validate the consumption value theory developed by Sheth et al (1991), and to extend it to the patronage decision. Procedure A comprehensive survey of patronage research was conducted, and all the determinants of shopping- and patronage behaviour were identified. These eterminants were then classified as attribute level, or higher order level factors. The attribute level factors were used to prompt respondents in the laddering interviews that were conducted. The interviews were analysed, and the contents of the interviews were coded according to the laddering methodology. This resulted in the generation of a implication matrix, as well as hierarchical value maps the linkages between attributes, consequences and linkages. The results of these qualitative interviews were the identification of further attributes, consequences and values. The consequences so identified were then compared to the results of the extensive literature survey, and then aggregated and evaluated to determine whether they conceivably fit the consumption value categories. Findings The consumption value theory (which identifies five value constructs) was triangulated with the means-end theory (which postulates that attributes, consequences and values form a hierarchical relationship) and it is concluded that both these theories integrate well into an extended consumption value theory. The CVT can then be considered to be theoretically validated. The validated theory was applied in the context of the patronage (-of shopping centres) decision, and it was found to extend to this previously untested decision. The research revealed a sixth value construct (significant value), but did not allow for the testing of the conditional value construct. Conclusion The consumption value theory is a significant advance in consumer behaviour theory, and has been successfully applied to the patronage decision

Exploring Central Platform Types and Related Concepts in Service Research – A Systematic Literature Review

Service exchange is considered as an integral component of digital platforms. Academic research differentiates between technical, economic, and social platforms, yet scholars face a multitude of diverse platform sub-types being inconsistently utilized. To address that issue and to provide a lexical platform definition overview, this study conducts a systematic scoping literature review on platform types and related concepts in the service domain. The systematic analysis of 49 high-quality service journal articles reveals that numerous digital platform sub-types exist in service research with overlapping definitions. Moreover, several relationship marketing constructs are investigated as central related concepts. This article is the first to explore divergent platform term definitions in the service domain and thus contributes a complementary service science lens on digital platforms alongside IS research

Examining the anatomy of last-mile distribution in e-commerce omnichannel retailing: A supply network configuration approach

PurposeThe purpose of this paper is to investigate the interplay between configuration dimensions (network structure, network flow, relationship governance, and service architecture) of last-mile supply networks (LMSN) and the underlying mechanisms influencing omnichannel performance.Design/methodology/approachBased on mixed-method design incorporating a multiple embedded case study, mapping, survey, and archival records, this research involved undertaking in-depth within- and cross-case analyses to examine seven LMSNs, employing a configuration approach.FindingsThe existing literature in the operations management (OM) field was shown to provide limited understanding of LMSNs within the emerging omnichannel context. Case results suggest that particular configurations have intrinsic capabilities, and that these directly influence omnichannel performance. The study further proposes a taxonomy of LMSNs comprising six forms, with two hybrids, supporting the notion of equifinality in configuration theory. Propositions are developed to further explore interdependencies between configurational attributes, refining the relationship between LMSN types, and factors influencing omnichannel performance.Practical implicationsThe findings provide retailers with a set of design parameters for the (re)configuration of LMSNs and facilitate performance evaluation using the concept of fit between configurational attributes. The developed model sheds light on the consequential effects when certain configurational attributes are altered, preempting managerial attention. Given the global trend in urbanization, improved LMSN performance would have positive societal impacts in terms of service and resource efficiency.Originality/valueThis is one of the first studies in the OM field to critically analyze LMSNs and their behaviors in omnichannel retailing. Additionally, the paper offers several important avenues for future research.</jats:sec

Reframing the Role of Companies in Sustainability: Toward business sustainability transitions

Kestävästä tulevaisuudesta on tullut ääneen lausuttu yhteiskunnallinen tavoite. Ottaen huomioon yritysten merkittävän aseman tämän päivän yhteiskunnissa, se, miten ne kehystävät oman roolinsa suhteessa kestävään kehitykseen ja käsillä oleviin kestävyyden haasteisiin, kuten ilmastonmuutokseen, ihmisoikeusrikkomuksiin ja tautipandemioihin, vaikuttaa keskeisesti tavoitteen toteutumiseen. Kestävän tulevaisuuden tavoittelu edellyttää laaja-alaisia muutoksia nykyisiin tuotantoja kulutustapoihin, mikä johtaa myös yritysten roolin uudelleentarkasteluun. Tutkimukseen perustuva ymmärryksemme yritysten uudenlaisista rooleista ja toimista kestävyyden edistämiseksi on kuitenkin vielä jäsentymätön. Vaikka kestävyys näkyykin yhä useamman yrityksen arvoissa, ovat yritysten aikaansaamat parannukset kestävyyden kentässä vielä melko pienimuotoisia ja siten usein riittämättömiä. Myös kestävyyteen kytkeytyvät liiketoimintamahdollisuudet pysyvät useimpien yritysten ulottumattomissa. Tämä tutkimus tarkastelee yritysten roolia suhteessa kestävyyteen moninäkökulmaisesti. Neljä toisiaan täydentävää näkökulmaa (strategia, johtaminen, yhteisluominen ja holistisuus) luodaan erillisjulkaisuissa, jotka yhdessä tämän kokoomaosion kanssa muodostavat väitöskirjan. Erillisjulkaisut tarttuvat tutkimusilmiöön eri metodologisin keinoin, jotka sosiaalisen konstruktionismin paradigma ja laadullinen tutkimusote sitovat yhteen. Teoreettisesti yritysten roolia tarkastellaan markkinointi- ja transitiokirjallisuuden muodostamien linssien läpi. Kokonaisuutena väitöstutkimus tarjoaa näkökulmia siihen, miten yritykset voivat uudelleenkehystää (reframe) roolinsa suhteessa kestävyyteen kolmella keskeisellä osa-alueella. Nämä osa-alueet; liiketoimintastrategia, johtamisen aktiviteetit ja yhteisluomisen käytänteet, toimivat joko uudistumisen lähteenä tai sen esteenä yrityksissä. Tutkimus ehdottaa, että uudelleenkehystämällä roolinsa yritykset voivat vahvistaa strategista asemaansa tulevaisuuden markkinoilla sekä edistää nykyisten tuotanto- ja kulutustapojen siirtymiä kohti taloudellista, ekologista ja sosiaalista kestävyyttä markkinoilla tapahtuvan vuorovaikutuksen kautta. Näitä siirtymiä kuvaamaan tutkimuksessa luodaan käsite liiketoiminnan transitio kestävyyteen, joka muodostaa työn teoreettisen kontribuution. Liikkeenjohtajille väitöskirja tuo uusia keinoja tarttua yhteiskuntia ja liike-elämää koetteleviin kestävyyden ongelmiin ja mahdollisuuksiin. Tutkimuksessa luodaan uudelleenkehystämisen kuutio, joka toimii metaforisena työkaluna johtajille. Kuutio kokoaa yhteen kestävyyden eri osa-alueet, jotka yritysjohtajien tulee tunnistaa ja saattaa tasapainoon, ja joiden avulla he voivat johtaa liiketoiminnan transitioita kohti kestävyyttä. Väitöstutkimuksen tuloksia hyödyntämällä yritykset voivat menestyksekkäästi kasvaa kestävän tulevaisuuden ajureiksi.The ways in which companies address sustainability today shape the future for businesses, societies, and ecosystems at large. Yet, companies keep addressing the world’s most serious evolving challenges with varying degrees of concern, urgency, and strategic importance for as long as their role in relation to sustainability remains unclear. To develop a broader business commitment to sustainability and participate in tackling grand challenges such as climate change, human rights violations, the widening wealth gap, and disease outbreaks, companies need to rethink their current role of being in relation with the world that is facing mounting environmental, social, and economic pressures. The purpose of this dissertation is, therefore, to explore the role of companies in relation to sustainability from multiple viewpoints. The four articles comprising the dissertation represent such viewpoints—strategy, management, co-creation, and holistic—that, together with this introductory part, provide a broad and timely outlook on companies’ role. Theoretically, this dissertation combines the previously disconnected fields of marketing and sustainability transition to create a lens through which companies’ role is explored. Methodologically, the articles use different methods but are bound together by a social constructionist research philosophy and a qualitative research strategy. Altogether, the primary data were generated from interviews with 13 managers and top executives and 25 millennial consumers in the Finnish business environment. The secondary data consist of annual reports, sustainability documents, and other public materials. Basing on the insights gleaned from the articles, this dissertation proposes reframing as a method for companies to break out of their old roles and enact new responses to sustainability. Reframing can expand horizons and capacity for action by bringing the two frames of business and sustainability together. Reframing—that is, making new interpretations of a current situation and creating novel responses—is suggested to be particularly useful in three organizational areas, namely business strategies, management activities, and co-creation practices. By conceptualizing a new construct, business sustainability transition, the dissertation makes its main theoretical contribution to the sustainability transition literature. The new construct captures the fundamental, system-wide sustainability improvements that companies can initiate in their business environment through purposeful marketplace interactions. The key managerial takeaways are provided in the form of the Reframing Cube. As a metaphorical tool, the Cube can help managers think and address sustainability in new ways that can readily be translated into actions. While letting go of the old ways of being in relation with the world is not easy, it is suggested that by reframing their role in sustainability, companies can reap strategic advantages while facilitating much-needed business sustainability transitions. Therefore, companies are key actors in shaping our common future for economically healthier, environmentally friendlier, and socially more balanced modes of production and consumption

Exploring supply chain sustainability risk in the UK fashion industry : a multiple case-study

Much has been written about fashion supply chains in recent years pertaining to the offshoring of production and sourcing by the companies in the UK fashion industry to other countries including inter alia Asia, as well as the attendant risks to such activities. Evidence suggests that businesses can experience disruptions from sustainability issues in their supply chains. In addition, there is an increasing focus on sustainability issues in global businesses and the UK fashion industry is not immune to these issues. Nevertheless, consideration of sustainability and its impact on risk pertaining to the supply chains in the UK fashion industry has not been actively pursued. Moreover, little is known about how sustainability issues manifest themselves as risks. Finally, the lack of a sustainability risk conceptualisation hinders the development of a sustainability risk management framework, which is critical to enable global fashion supply chains to survive and compete in a volatile and demand-driven sector. Therefore, the aim of this thesis is to explore the phenomenon of sustainability risk and supply chain sustainability risk management processes within the context of the UK fashion industry.For the purpose of exploration, an inductive qualitative research approach and a multiple case study research method were adopted. The UK fashion industry has exhibited interesting dynamics in the last few decades. For example, UK textile and garment manufacturing has massively declined in size, yet the UK fashion industry demonstrates fierce competition and retailer concentration. Therefore, five fashion companies were theoretically sampled from the UK fashion industry. The selected companies were a good mix of small and medium size. All carried out their major operations such as sourcing, manufacturing, distribution, warehousing and customer service in the UK. This enabled the researcher to deeply explore and gain insights into the phenomenon of sustainability risk and supply chain sustainability risk management processes in the contemporary context of the UK fashion industry. Data was collected by semi-structured interviews, supported by observations and secondary sources. Interview transcripts were subject to narrative analysis based upon a social constructionist approach.This research identified seven major factors as barriers and drivers for supply chain sustainability risk management: organisational culture, growth of fast fashion, organisational resources, management structure, safeguarding brand reputation, stimulator of innovation and co-opetition. These findings were further grouped into a supply chain sustainability risk management typology. The typology implies that the case companies need to understand and should have knowledge about their current and potential future key sustainability risk and then need to have a certain organisational design and innovative management processes to manage their supply chain sustainability risk

Exploring online community participation

Firm-hosted online brand communities, in which consumers interact regarding brand-centric topics, represent a fascinating context to study the motives of participation within the community. Theories of social capital and collective action are extended to begin understanding why individuals contribute, as they receive no immediate benefit, and “lurkers” have the same access to that contributed knowledge as everyone else. Building on the concept of means-end chain, that is we seek out certain attributes as a means to achieve a desired end state, the linkage between online brand community attributes, individual need, and personal values is ethnographically examined. By way of in-depth laddering interviews, why individuals participate will be answered through understanding how that participation fulfils individual need and enhances personal value. The main study comprises two approaches – participant observation in the community, and individual in-depth interviews with 32 community members. Over 2222 data points and 750 ladders were discovered and analysed using the laddering technique. Seven themes emerged as to why individuals actively participate in an online brand community – belonging, recognition, helping others, knowledge, professional advancement, personal development, and entertainment