The role of resource commitment and innovation in reverse logistics performance

Purpose – Aims to provide empirical evidence of the relationships between and among reverse logistics, resource commitment, and innovation. Design/methodology/approach – Mail surveys were sent to members of the Automobile Aftermarket Industry Association, a large trade association. Factor level results followed by between‐item results, as typically reported in general linear modeling and mediated regression, are developed using a split sample methodology. Ultimately, Resource‐Advantage Theory provided the framework for examining the impact of developing innovative reverse logistics‐related dynamic capabilities. Findings – Resource commitment makes reverse logistics programs more efficient and more effective. However, the resources must be used in such a manner as to develop innovative capabilities/approaches to handling returns. Resource commitment was not found to be significantly related to innovation in reverse logistics at smaller firms. This is likely to be related to the level of resources available. Larger firms can commit greater resources and, thus, enjoy superior performance compared with smaller firms in the survey group. Research limitations/implications – The focus is somewhat narrow. New research should extend beyond the one industry examined. Future research should also expand to include more members of the supply chain and employ methods that allow examination of network relationships. Practical implications – Reverse logistics deserves special attention in terms of resource commitment. Resources related to labor, i.e. allocating sufficient personnel to reverse logistics programs, are especially critical. Innovation in reverse logistics programs was found to be related to operational service quality at both small and large firms. Originality/value – The research provides empirical evidence of the relationships between resource commitment and innovation – and how reverse logistics program performance is influenced. This has important implications with respect to customer relations. It can also be used to provide rationale for securing adequate resource commitment for reverse logistics programs.