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

Abstract

Purpose -This 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/approach -The 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. Findings -The 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/implications -The 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 implications -Growing 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/value -This 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.

Supply Chain Integrity: A Key to Sustainable Supply Chain Management

“…This is exemplified in the case of conflict minerals and natural resource scarcity that causes buyers of 3TG minerals to map their supply chains to ensure they are not financing guerilla warfare or slave labor (Bell et al. , ). SCI provides a means for managing and mitigating the supply chain risk (Manuj and Mentzer ; Rao and Goldsby ) that arises from having to make decisions with incomplete information such as in the case of working with suppliers of unknown character and integrity.…”

“…Therefore, firms seeking competitive advantage by accessing suppliers and resources abroad are often faced with the dilemma of ensuring responsible sourcing or prioritizing environmental stewardship at the cost of financial performance. This is exemplified in the case of conflict minerals and natural resource scarcity that causes buyers of 3TG minerals to map their supply chains to ensure they are not financing guerilla warfare or slave labor (Bell et al 2012(Bell et al , 2013. SCI provides a means for managing and mitigating the supply chain risk (Manuj and Mentzer 2008;Rao and Goldsby 2009) that arises from having to make decisions with incomplete information such as in the case of working with suppliers of unknown character and integrity.…”

In Pursuit of Closed‐Loop Supply Chains for Critical Materials: An Exploratory Study in the Green Energy Sector

“…; Rahman and Subramanian ; Bell et al. ). In particular, Pagell and colleagues () highlight in‐house recycling as an opportunity for manufacturers to keep the product/material out of other channels, unavailable to competitors.…”

“…According to several studies, competition transforms in CLSC: Lau and Wang (2009) and Simpson (2010) indicate opportunities for manufacturers to collaborate in CLSC with competitors from a forward supply chain; and Pagell and colleagues (2007) caution against a possibility of a competition between recyclers and primary material suppliers. However, researchers advocate for CLSC and recycling as a source of competitive advantage (Pagell et al 2007;Rahman and Subramanian 2012;Bell et al 2013). In particular, Pagell and colleagues (2007) highlight in-house recycling as an opportunity for manufacturers to keep the product/material out of other channels, unavailable to competitors.…”

Resource-efficient supply chains: a research framework, literature review and research agenda

“…need to be explored (Christopher, 2010). Although there has been recently an attempt to address some of these issues by Bell et al (2012Bell et al ( , 2013, it still remains more at a conceptual level, whereas there is no specific focus on agri-food supply chains.…”