Drivers and Barriers of Mobile Phone Remanufacturing Business in Indonesia: Perspectives of Retailers

Didik Wahjudi, Shu-san Gan, Yopi Yusuf Tanoto, Jerry Winata, Benny Tjahjono

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Abstract

Remanufacturing is deemed to be effective in reducing WEEE. Existing studies on remanufacturing mostly focus on operational issues, product acquisition, and pricing. However, some doubts about remanufacturing business arise in developing countries, where there is less regulation on remanufacturing and less environmental awareness. This study aims to investigate the prospects of remanufacturing business from the retailers' perspectives through in-depth interviews on three retailers in Surabaya, Indonesia. The main drivers for mobile phone remanufacturing business are its affordable and competitive price, big demand for popular mobile phones and high-end mobile phone, the opportunity for specification upgrade, and its suitability with the needs of Indonesian people. The main barriers for remanufacturing business are the possibility for cannibalizing new mobile phones' market share, the uncertainty of core supply, discontinuity of replacement part supply, lack of product knowledge among consumers and retailers, hesitation of retailers to sell remanufactured products, and lack of strict and clear regulations about remanufacturing business. Findings of this study provide insights to prospective mobile phone remanufacturers of what needs to be tackled to start a prosperous business. On the theoretical side, it provides complementary knowledge to existing studies that have been conducted mostly on countries that have higher environmental awareness.
Original languageEnglish
Article number01006
Pages (from-to)1-9
Number of pages9
JournalE3S Web of Conferences
Volume130
DOIs
Publication statusPublished - 15 Nov 2019
Event1st International Conference on Automotive, Manufacturing, and Mechanical Engineering - Bali, Indonesia
Duration: 26 Sep 201828 Sep 2018
Conference number: 1st
http://ic-amme.petra.ac.id/

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Bibliographical note

CC-BY This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Keywords

  • Case study
  • Closed-loop supply chain
  • Short-life cycle product
  • Waste electrical and electronic equipment (WEEE)

ASJC Scopus subject areas

  • Environmental Science(all)
  • Energy(all)
  • Earth and Planetary Sciences(all)

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