Difference in supply chains between electronic and fashion goods

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Methodology

This chapter presents and explains the research theories and strategies which were utilized in order for this research to be conducted according to scientific business research principles. This chapter also presents the re-search methods which are used to collect the primary and secondary data as well as explanations on why methods were selected and most suited for this study. The chapter ends with a summary and a overview of the methodology.

Research philosophy

Due to the nature of the research purpose and research question, it is difficult to decide upon one philosophy being better than the other. The most important aspect in this study was the research question and from there the methodology of the research was decided.
If the research would take the view of natural science, a positivism approach would have been taken (Saunders, Lewis and Thornhill, 2007). Then it would have been involving strictly facts and no impressions; which is not the case for the authors. Realism is another philosophy it essentially means that what our senses shows us; is the truth. It has a scien-tific approach similar to positivism in the sense that collection and understanding of data are most important.
However, choosing one philosophy was somewhat unrealistic in this study. Pragmatism is a research philosophy where the most important determining factor for choosing a philoso-phy is the research question (Saunders et al. 2007) which was the case in this study. If the research question does not directly suggest a positivist or interpretivist philosophy; then there is a possibility to work with both approaches, which is the pragmatist’s view.
Furthermore, this was an attractive philosophy for the research because it was possible to avoid debating about concepts such as truth and reality (Tashakkori and Teddlie, 1998).
In account for this; a pragmatist’s philosophy will be embraced.

Research approach

The research approach involves whether to apply a deductive and/or an inductive ap-proach. Ghauri and Grönhaug (2005), states that a main difference between these is that the inductive approach is based on empirical evidence and deduction is based on logic. Ad-ditionally, in inductive research, theory is developed after data collection, such as observa-tion and in deductive research; you either reject or accept the theory which is established beforehand.
The deductive approach is often the approach when conducting a scientific research, where laws present the basis of explanation, the phenomena is allowed to be anticipated, predict the occurrence and because of this; they are allowed to be controlled (Collis and Husssey, 2003; Saunders et al. 2007). It involves to first developing a theory which is then tested to confirm or disapprove.
Saunders et al. (2007) recognize important characteristics of deductive approach. First, a main objective is to search and explain causal relationships between the variables involved, to test this; quantitative data is normally collected (qualitative data can also be used). To test and explain the causal relationship, the research would apply a highly structured approach in order for replication to be facilitated (Gill and Johnson, 2002) and to ensure reli-ability. Furthermore, concepts in the research need to be operationalized in deductive re-search therefore it is possible to measure data quantitatively.
Robson (2002) lists five stages which a deductive research will go through:
• Develop a testable theory (hypothesis).
• Express the hypothesis in operational terms.
• Test the hypothesis.
• Examine the outcome, it will either confirm the theory or create a need to modifi-cation.
• If it is necessary; modify the theory.
An alternative approach is not to first develop a theory, but rather to get a feeling of the problem first and to get a better understanding of the nature of the problem. The result of collecting and analyse the data would provide the ability to formulate a theory. This is the inductive approach of research (Saunders et al. 2007).
The inductive approach creates a theory from a particular situation (Collis and Hussey, 2003). Furthermore, from empirical observations; the outcome is the theory (theories) (Bryman and Bell, 2003). There is a greater chance that researchers conducting an inductive approach would collect and handle qualitative data to achieve research goal (Easterby-Smith, Thorpe and Lowe, 2002).
The research topic regarding reverse logistics and benchmarking between the electronic and the fashion industry involves not much literature in the field, consequently it is difficult to first develop a testable theory. Thus it is more appropriate to work inductively for the authors. Furthermore as Saunders et al. (2007) proposes; inductive approach is more ap-propriate when the sample of the study is small and where qualitative data is preferred.
In account of this; an inductive approach will be engaged.

Purpose of research

The purpose of this study was to examine and benchmark on a set of characteristics an electronic and a fashion organization and how the organizations both deal with reverse lo-gistics when conducting e-commerce. To do this, a literature search is going to be made as well as interviewing experts in the two organizations.
Robson (2002) describes descriptive studies as portraying accurately an event, situation or a person, which can be a part of an exploratory study. However, this is not the purpose of the research. To some extent, the authors are out to establish and examine the relationship between two variables (an electronic and a fashion organization) to explain the relationship between them, which is termed as explanatory study. However, the purpose is also to gain new insights and to find out what is happening in to the field of chosen study, which Rob-son (2002) proposes to be a part of an exploratory study.
Due to the authors want to gain new insights and examine a relationship between two variables; an explor-atory and an explanatory study will be conducted.

Research strategy

A case study is defined as “a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence” (Rob-son, 2002, p. 178). Conducting a case study is useful if the purpose is to gain a rich under-standing of the context research and the process (Morris and Wood, 1991). A case study strategy is particular advantageous to answer questions such as ‘why?’, ‘what?’ and ‘how?’ and for that reason it is often used in explanatory and exploratory research (Yin, 1994).
The research will involve both primary and secondary data collection which will be used in combination. The main reason for this is to be able to triangulate the data. Triangulation refers to that different data collection techniques are used within one study. This is done to be able to ensure that the data is accurate and it is telling you what you think they are telling you (Saunders et al. 2007). The data collection which will be used will be described further in section 3.9 (data collection).
Yin (2003) differentiates between four distinct strategies divided into two dimensions:
• Single vs. multiple case;
• Holistic vs. embedded case.
Single case is when only one single, critical case is chosen to study. Multiple cases are when more than one case is chosen. The purpose of this can be whether the findings from the first case occur in the other(s) case. If the organization as a whole is being studied, a holis-tic case study is being performed and in contrast if the purpose is to study a sub-part of the organization, it would be called an embedded case study.
This study will involve using two organizations, one electronic and one fashion organiza-tion to gain understanding, insights and to examine a relationship between them. Further-more, it will not involve the companies as a whole but rather the logistics side of the two organizations, namely the reverse logistics department of the two. Additionally, the case study will involve collection from both primary data and secondary data.
In account for this, a multiple and embedded case study will be conducted.

Research choices

The purpose of our research was to collect qualitative data and analyse it, both primary and secondary data. The main aim of the research was to figure out ‘why’ and ‘how’ organiza-tions use reverse logistics based on selected criteria. Furthermore, qualitative data was ac-quired through the use of primary and secondary data collection, namely semi-structured interviews respectively literature review in academic journals. Exclusively qualitative data collection techniques will be used; it will not be a mix of quantitative and qualitative tech-niques.
In account to this; a multi-method qualitative study (Saunders et al. 2007) will be applied.

Qualitative research

Depending on the research purpose; the research can have a qualitative or/and quantitative approach. One way to separate the two is either focusing on numeric data or non-numeric (text) data (Saunders et al. 2007; Dye, 1993; Healy and Rawlinson, 1994). Furthermore as Jankowicz (1991) recognizes, which choice of research will depend on the research prob-lem and purpose.
Ghauri and Grönhaug (2005) distinguish that the main difference between quantitative and qualitative research is procedures, not the quality. In quantitative research, research arrives by statistical methods and other procedures of quantification.
Quantitative data is data that has been collected through techniques such as questionnaires, that provides the outcome of numeric data. Non -processed quantitative data in its raw form does not mean much and therefore have to be turned into information. Different analysing techniques can convert the data into charts, graphs and statistics which will help to make sense of the data (Saunders et al. 2007). Hair, Black and Babin (2006) identified that quantitative research is appropriate when the purpose is to identify and confirm rela-tionship between factors.
Based on the researcher’s own interpretations of information and data, qualitative re-search’s purpose is to provide an in-depth understanding of the area of interest (Ritchie and Lewis, 2003). Qualitative research is recommended when the area of study is an event or a social process, which is difficult to conduct with quantitative methods. In such cases, qualitative methods are appropriate and can provide details and rich understanding of the subject (Ghauri and Grönhaug, 2005). Furthermore, Strauss and Corbin (1990) state that qualitative research is suitable when conducting research on individuals, organizations and groups.
A two semi-structured interviews will be conducted, one with each organization (explained more in section 3.9) to collect primary qualitative data. Secondary data will also be collected through the use of academic journals to help us to draw comparisons.

Sampling

Sampling the population is primarily associated with quantitative research which the pur-pose is to conclude statistically (Ghauri and Grönhaug, 2005). Furthermore, in qualitative sampling there is hardly ever the need for statistical conclusions, but rather to understand and to gain insights.
However, it does not matter what the research question and purpose is; there is still a need to consider sampling the population (Saunders et al. 2007). Furthermore, due to time, budget and access restrictions, there is a strong need for sampling in this research. A non-probability sampling technique will be applied due to the fact that there is no need to generalize statistically.
Requirements for the organizations in this study were that they should have experience of reverse logistics and that they consider it as important and complex. Another require-ment/delimitation was that the research would not involve store purchases, only e-commerce. Additionally, the authors were interested to investigate two different industries; electronic and the fashion industry, due to this a purposive sampling technique was applied, where the judgments to select cases (organizations) by the authors was the best way to meet research objectives (Saunders et al. 2007).
Furthermore, the test subjects are chosen based on their position in each organization, which in both cases are in the logistics department and with great knowledge of the reverse logistics activities/processes which the organization is conducting.

Time horizons

According to Saunders et al. (2007), a cross-sectional study is when the study is on a partic-ular phenomenon at a particular time while longitudinal study is similar to a diary; when the study is concerned about change and development over a given period of time.
The purpose of this study is trying to describe how these two organizations handle reverse logistics in their organization at this particular time, not how they used it before and study the change and development.
In account for this; a cross-sectional study will be applied.

Data collection

The data collection will consist of both primary and secondary data. The secondary data will be collected mainly through the use of academic journals that will help draw compari-sons to the primary data.
The primary data will be collected through the use of face-to-face, semi-structured inter-views with the two organizations, which will be the main focus of data collection. Using these different data collection techniques will help to triangulate the results.

Primary data collection

Interviews

Three different ways of conducting interviews exists according to Saunders et al. (2007); unstructured, semi structured and structured. An unstructured interview is used as an in-formal conversation between the interviewer and the respondent to explore a general area in the subject of interest in depth. Semi -structured interviews are based on a list of themes and questions but these can vary from interview to interview. The structured interview is used with an emphasis of identical set of questions is existing The authors utilized non-standardized, one-to-one, face-to-face interviews. The interviews conducted were semi-structured which in other words is when the researchers’ have a list of questions and themes that should be covered in the interview. Semi-structured inter-views are more suitable for a qualitative analysis as they can help cover the responses in or-der to understand ‘how’ and ‘why’ questions (Ghauri and Grönhaug, 2005). The questions in the interviews remained similar during all of the interviews in order to ensure the reliabil-ity and validity of the questions. Questions were added sporadically in order to further look into subjects that believed would benefit the research. Open-ended and probing questions were used in order for the respondents to speak freely about the subjects investigated and explain in the own words.
A respondent interview technique was exploited which means that the interviewers guide the interview and the interviewee respond to the questions asked by the researchers (Rob-son, 2002). The authors believed it would give a more in-depth knowledge of the subject and would make information more clear and understandable.
The interviews were conducted in Swedish, much due to that both the interviewees and in-terviewers were Swedish and this would help the flow of the interview. Due to that the in-terviews were conducted in Swedish, the information gathered had to be transcribed and translated to English. The material gathered might have been wrongly translated due to the authors own interpretation of words and phrases. Therefore this process was done several times in order to avoid errors and bias.
A tape recorder was used during the interviews in order to gather as much information as possible. Important findings were also written down during the interview, much due to the will to emphasize the importance of that subject. The interviewee was asked for approval of the recording before it was commenced. After the interview was done, the recordings were closely reviewed and a summary of the interview was written.

Secondary data

Secondary data has been collected in order for not only to provide a good background, but also to have theories and methods to rely the research upon. In order to gather the second-ary data, it is possible to use secondary literature sources such as books, academic journals, magazines articles and newspapers (Saunders et al. 2007). The authors have agreed on which search words to use before searching for the secondary data, in order to give similar results and for the sources to not be as spread. Saunders et al. (2007) argues that an ad-vantage with using secondary data is triangulation which is when primary data collected is compared with the secondary data that has been found.
In order to collect secondary data the authors used:
• Journals
• Books
As well as JULIA (Jonkoping’s Library Service) and Google Scholar were the primary data-bases used to find these articles.

Data analysis

Analysing qualitative data is the process of structuring and conducting an overview of the collected data to gain understanding and to clarify the problem (Marshall and Rossman, 1995; Ghauri and Grönhaug, 2005). The qualitative data analysis is based on the semi-structured interviews that were conducted at the two organizations.
Based on the research question and the fact that an inductive research was conducted; a da-ta display and analysis procedure was performed which is based on the work by Miles and Huberman (1994). The process is composed of the following three processes:
– Data reduction: The first step is to summarize and simplify the data that has been col-lected
– Data display: Second step is to organize and assemble the reduced data into visual or diagrammatic displays.
– Conclusion drawing and verification: Now the data have been reduced and displayed in a way that it is easier to analyse and draw conclusion.
Due to the fact that the interview was divided into different themes and categories; the data reduction step was made easier. Additionally, after the interviews were performed; the data was classified into related categories which are based on the theoretical framework. This structured the data and made it easier to further analysis. Furthermore, some restructuring of data was made to assure that the data that was related to each other was together, to fur-ther facilitate data analysis. Matrices in tabular form were used here to simplify analysis.

Validity and reliability considerations

In both qualitative and quantitative research, reliability is concerned with whether other re-searchers would reveal similar information as the main researchers (Haley and Rawlinson, 1994). Stone (2004) add to this by defining reliability as the ability of a test or a similar se-lection technique to produce similar results and scores for researchers on separate occa-sions. In contrast, validity is concerned how accurate a question measures or describes what it was intended to measure or describe (Bell, 2000).
When conducting an interview or a questionnaire, several biases can occur that affect the validity and reliability of the findings. The interviewer bias is one of these biases, which oc-curs when the interviewer influences the interviewee with any type of comments, tones or non-verbal behaviour. Bias can also be found in lack of trust between the interviewer and interviewee, lack in credibility and that information may be limited (Saunders et al. 2007). All these biases affect the answers of the interview and therefore tamper the whole re-search.
In order to collect the empirical data, semi-structured interviews were conducted, which fa-cilitated a more open discussion giving us cooperation with the respondent. Bias was avoided due to that both authors were present during all of the interviews and a tape re-corder was used. With the help of a tape recorder, the authors could solely focus on mak-ing the interview flow and had the possibility to go back and listen to the interview several times. The authors also relied on secondary data such as information and written docu-ments from both organizations in order to ensure reliability of what was being covered in the interviews.
To ensure validity and reliability, the authors asked fellow research students to look through the questions that were planned for both the interviews, in order for the questions to be understandable. In a sense, this would be considered as a pilot test which according to Saunders et al. (2007) helps establish content validity and enables adjustments of both structure of the interview and the questions. The first interview conducted also worked as a pilot test for the questions and the interview format. Questions that were not understood or misleading were removed from the interview and not used in later interviews.
Readers should, however, be aware of possible generalization due to the fact that the re-search is based on two different cases. Yin (1994), state that using qualitative research with semi-structured interviews will not be able to be used to make generalizations on the entire population. In other words, both of the cases can be compared but one should try to not make generalizations.

Table of Contents
Abbreviations and Terminology
1 Introduction
1.1 Background
1.2 Electronic retailer
1.3 Fashion retailer
1.4 Problem discussion
1.5 Purpose
1.6 Research question
1.7 Delimitations
1.8 Outline of thesis
2 Literature review
2.1 Supply chain
2.2 Logistics
2.3 Differences between forward and reverse flow
2.4 Reverse logistics
2.5 Difference in supply chains between electronic and fashion goods
2.6 E-commerce
2.7 Summary of literature review
3 Methodology
3.1 Research philosophy
3.2 Research approach
3.3 Purpose of research
3.4 Research strategy
3.5 Research choices
3.6 Qualitative research
3.7 Sampling
3.8 Time horizons
3.9 Data collection
3.10 Data analysis
3.11 Validity and reliability considerations
3.12 Overview of methodology
4 Empirical findings
4.1 Study I: Electronic retailer
4.2 Study II: Fashion retailer
4.3 Overview empirical findings
5 Analysis
5.1 Drivers and barriers within reverse logistics
5.2 Differences in value of products
5.3 Speed versus costs mentality
5.4 Forecasting and information regarding returns
5.5 Recycling versus cost of handling and transporting
6 Conclusion
6.1 Reflection on the research process
6.2 Suggestions for future research
List of references
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