Engaging consumer-level open innovation collaborators in circular supply chains: A study on end-of-life product return motivations

Abstract

As consumer behavior in circular supply chains becomes increasingly critical for sustainability, a deeper understanding of the mechanisms driving end-of-life (EOL) product return decisions is necessary. This study investigates how consumer-level open innovation influences EOL product return proclivity by examining the mediating role of perceived return leniency and its downstream effects on incentive mechanisms, ease of the return process, and perceived return risks. Using partial least squares structural equation modeling (PLS-SEM) with a sample of 387 Thai consumers, the analysis empirically validates a conceptual framework linking consumer knowledge search, cooperation, and inclusivity to perceived return policy leniency and return behavior. Findings reveal that consumer inclusivity significantly enhances perceived return leniency, which in turn fosters higher return engagement through incentives and ease of return processes. However, financial incentives alone do not significantly influence return proclivity, indicating that consumers prioritize convenience and policy leniency over monetary rewards. Additionally, while perceived return risks were hypothesized to negatively affect return proclivity, results indicate no significant effect, suggesting that risk perceptions may not strongly deter EOL return behavior. From a theoretical perspective, the study advances open innovation theory by positioning consumers as active collaborators in circular supply chains, demonstrating that inclusivity-driven return policies enhance engagement in sustainability-driven return programs. Moreover, integrating economic and behavioral incentives refines existing models of consumer motivation in circular economies. For practitioners, the results highlight the importance of consumer-centric return policies that emphasize transparency, accessibility, and procedural ease rather than relying solely on financial incentives. Policymakers can apply empirical findings to design regulatory frameworks and incentive structures that facilitate higher consumer participation in EOL return programs.