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.