The Impact of Reverse Logistics Process Coordination on Logistics Service Provider Relationship Quality A moderated mediation model for multichannel retailers in the fashion industry

Abstract

Multichannel retailing is a widely adopted strategy in fashion retailing environment of the current era. To gain a competitive edge, fashion retailers must invest resources in the efficient management of reverse logistics, particularly for product returns, stock adjustments, core returns etc. It is therefore vital for retailers to improve their returns management processes by understanding the role of service quality in reverse logistics. This study investigates the impact of reverse logistics process coordination on LSP relationship quality, through the mediating role of reverse logistics service quality and moderating role of conflict frequency. Although several researchers have discussed the role of logistics service quality in forward logistics, the notion in the context of reverse logistics remain underexplored. Moreover, process coordination, relationship quality with LSP and conflict frequency in reverse logistics are also underexamined. This study develops a hypothesized moderated mediation framework to address this gap in literature. A sample of 241 retail store managers was selected through purposive sampling, based on two criteria: multichannel characteristics and outsourced logistics. A self-administered questionnaire was developed for the measurement of constructs, gauging responses on a five-point Likert scale. The questionnaire was pilot tested to achieve a clearer understanding of the returns processes in fashion retail, and the conflicts between the retailer and LSP. Afterwards, online surveys were conducted to collect the data. Conditional process analysis was used to assess the moderated mediation model in SPSS using Process V4.1. The analysis demonstrated a significantly positive impact of reverse logistics process coordination on relationship quality with LSP, a significantly positive mediation effect of reverse logistics service quality in the relationship between process coordination and relationship quality, and a significantly negative moderation effect of conflict frequency on the relationship among process coordination and reverse logistics service quality. To sum, the findings revealed the presence of a significant direct and indirect effect, moderated by conflict frequency. However, conflict frequency, contrary to the hypothesis in the study, strengthened the indirect relationship. This study adds to the prevailing literature by developing and testing an underexplored framework in the context of reverse logistics in multichannel retail. The study will help managers obtain better insights on the best practices leading to effective management of reverse logistics processes. particularly the product returns.