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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2022-05-11  |  Accepted: 2022-09-04  |  Published: 2022-09-30

Title

Retailer or the third-party remanufacturer: Which is the greener contractor for outsourcing remanufacturing?


Abstract

The aim of this paper is to understand how outsourcing remanufacturing operations to different OEMs agents (i.e., the retailer or third-party remanufacturer) affected a supply chain's sustainable issues. Although outsourcing strategies have been well studied in the remanufacturing literature, existing research has focused primarily on operational options between original equipment manufacturers (OEMs) and third-party remanufacturers (3PRs). In practice, however, many brand name retailers have recently created business models in which product remanufacturing is an integral part. The question showed the retailer or the third-party, which was the right remanufacturer for OEM's remanufacturing outsourcing? To answer this question, we developed two models for an OEM that had two options for remanufacturing outsourcing: (1) outsourcing remanufacturing to a 3PR (Model T) or (2) to its retailer (Model R). Using these two models, we addressed the questions: from the profit-maximizing perspective, how does outsourcing remanufacturing operations to retailers create strategic issues that are different from those with 3PRs? Which is more profitable for the OEM, 3PR, retailer, and the total supply chain? From an environmental impact perspective, how does outsourcing remanufacturing operations to retailers create strategic issues different from those with 3PRs? Which is more beneficial for our environment? Our analysis revealed that if the OEMs cared about economic performance, outsourcing the remanufacturing operations to the 3PR was a practical strategy. Conversely, if they cared about environmental sustainability, outsourcing the remanufacturing to the retailer was the preferred strategy. Numerical studies further validated our conclusions


Keywords

outsourcing, third-party remanufacturer, original equipment manufacturer, greener contractor


JEL classifications

L81 , O14 , Q21


URI

http://jssidoi.org/jesi/article/1005


DOI


Pages

435-452


Funding

This research was supported by the project, which has received funding from the Institute of Technology and Business. Grant Number IVSUZO001 “Benchmark of the world economy in the context of the principles of the circular economy and determining the value of the company“. This research was also supported by the project, which has received funding from the Academia Aurea Grant Agency. Grant Number GA/22/2021 “The use of artificial neural networks in the management of value for owners as the main goal of the enterprise“.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Tan, Hong
Chongqing University, Chongqing, China https://www.cqu.edu.cn
Articles by this author in: CrossRef |  Google Scholar

Sheng, Pengfei
Henan University, Kaifeng, China http://www.henu.edu.cn
Articles by this author in: CrossRef |  Google Scholar

Horák, Jakub
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

10


Number

1


Issue date

September 2022


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1052  |  PDF downloads: 552

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