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

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.