Closed-loop supply chain transparency: consumers’ reaction to retailers’ information disclosure

Consumers are increasingly demanding in terms of supply chain transparency (SCT); however, it still remains an open issue for retailers. The transition toward closed-loop supply chains (CLSC) is involving consumers as active parties in the supply chain management processes, especially in the textile and clothing industry. In fact, consumers participate in take-back programs by actively acting as suppliers in the closed-loop process and decide whether to buy new products or products composed by recycled materials. In applying the signaling theory the current study aims at investigating which is the impact of disclosing closed-loop supply chain information on consumers’ purchase intention and consumers’ intention to participate in take-back programs. Three scenario-based survey experiments with consumer participants are developed. The first and second study investigates the efficacy of breadth closed-loop SC transparency, with closed-loop SC visibility and closed-loop SC traceability as the manipulated independent variables, respectively on consumers purchase intention and consumers intention to participate in take-back programs. The third study examines the efficacy of when to disclose information on consumers intention to participate in take- back programs. The research findings contribute to the advancement of the literature investigating consumer centricity in supply chain management and provide retailers with valuable insights on strategic investments in transparency.