Supply chain transparency
and willingness-to-pay for
refurbished products
Yanji Duan
Department of Marketing and Logistics,
University of North Florida, Jacksonville, Florida, USA, and
John A. Aloysius
Sam M. Walton College of Business,
University of Arkansas, Fayetteville, Arkansas, USA
Abstract
Purpose – Researchers in supply chain transparency have called to expand the boundaries by disclosing
various types of information to multiple stakeholders. The purpose of this paper is to explore the effect of
transparency about supply chain sustainability on consumers as critical stakeholders and investigate the
effectiveness of message characteristics.
Design/methodology/approach – This study utilizes two scenario-based experiments grounded in a
refurbished goods context: Study 1, which employs a 2 × 2 between-subject experiment investigates the
effects of product type and sustainable information provision on consumers evaluations, and Study 2, which
employs a 2 × 1 between-subject experiment examines the effects of sustainable information direction on
consumer evaluations. A total of 348 participants were recruited from the Amazon M-Turk platform across
the two experiments. Data are analyzed with regression analysis using the PROCESS macro in SPSS and the
Johnson–Neyman technique.
Findings – Contrary to prior research that assumes that refurbished products are associated with lower
quality, quality perceptions are moderated by individuals’ environmental involvement (EI) and the information
presented by the firm. More importantly, consumer evaluations are influenced by specific characteristics of
sustainable supply chain messages: high EI individuals have higher willingness-to-pay a premium (WTPP)
when the message is consistent with original beliefs (pro-attitudinal). In contrast to prior theory, there was no
difference in the WTPP of consumers with high EI and low EI for counter-attitudinal messages.
Practical implications – The study shows that what to say, how to say it and to whom, are critical for
firms who seek to nudge consumers to support their sustainable practices.
Originality/value – The value of communicating information on sustainability has been well established.
However, little is known about such association when the information provided trades off environmental
benefits and product quality. This research addresses the gap in a refurbished product context. The
research studies the effect of sustainable supply chain transparency and message characteristics on
stakeholders’ evaluations.
Keywords Sustainability, North America, Decision making, Mixed method
Paper type Research paper
1. Introduction
In response to increased concern for the environment from both consumers and
policymakers (Oglethorpe and Heron, 2010; Winter and Knemeyer, 2013; Wu et al., 2017),
firms are placing a greater emphasis on developing a sustainable supply chain (Brockhaus
et al., 2013). The sustainable supply chain is defined as “the strategic, transparent
integration and achievement of an organization’s social, environmental and economic goals
in the systemic coordination of key inter-organization business processes for improving the
long-term economic performance of the individual company and its supply chains” (Carter
and Rogers, 2008, p. 368). Through building a sustainable supply chain, firms will be able to
reduce sustainability-related risk (Multaharju et al., 2017), motivate innovations, improve
performance (Dubey et al., 2017) and have opportunities to achieve competitive advantages
(Porter and Van der Linde, 1995; Golicic and Smith, 2013).
The International Journal of
Logistics Management
Vol. 30 No. 3, 2019
pp. 797-820
© Emerald Publishing Limited
0957-4093
DOI 10.1108/IJLM-01-2019-0025
Received 20 January 2019
Revised 5 June 2019
Accepted 11 June 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0957-4093.htm
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Supply chain
transparency