Institutional pressures, resources commitment, and returns management

Purpose This study aims to explore the relationships among institutional pressures, commitment of resources and returns management. Returns management is regarded as a part of supply chain management. However, the research in returns management has received much less attention. To bridge the gap, this study concerns key concepts from two important schools of thought, i.e. institutional theory and the resource-based view, to build up the research model. Design/methodology/approach Retailers and maintenance providers in the 3C industry (computers, communication and consumer electronics) in Taiwan were surveyed, and the statistical methods of hierarchical and moderated regression were used to examine the relationships among institutional pressures, commitment of resources and returns management. Findings Institutional pressures, comprising non-market and market pressures, affect the implementation of returns management (product return practices and product recovery practices). Commitments of resources positively and significantly moderate the relationship between the pressures imposed by non-market and market actors and product return practices and product recovery practices. Research limitations/implications This study investigates only the factors that drive returns management. Future research can examine the relationship between the antecedents and consequences of returns management. Furthermore, returns management may become increasingly critical for firms to develop and perform corporate social responsibility (CSR). Therefore, future research can investigate the relationship between CSR practices and returns management. Practical implications This research suggests that managers under institutional pressures should continually pay attention to the effects of external factors on returns management. Additionally, the results reveal that a commitment of resources can reinforce the relationship between the pressures imposed by non-market and market actors and the implementation of returns management. Under significant institutional pressures and resource constraints, managers may increase the effectiveness of returns management while attending to the concerns of non-market and market actors. Originality/value This study presents a model that considers three major explicative variables: institutional pressures, resources commitment and returns management. It is the first investigation to integrate three streams of literature on institutional theory, the resource-based view and returns management.