Circular economy-based reverse logistics: dynamic interplay between sustainable resource commitment and financial performance

• Yudi Fernando ^[1] ; Muhammad Shabir Shaharudin ^[2] ; Ahmed Zainul Abideen ^[1]
  1. [1] Universiti Malaysia Pahang

     Universiti Malaysia Pahang

     Malasia

     
  2. [2] Universiti Sains Malaysia

     Universiti Sains Malaysia

     Malasia

     
• Localización: European journal of management and business economics, ISSN-e 2444-8494, ISSN 2444-8451, Vol. 32, Nº. 1, 2023, págs. 91-112
• Idioma: inglés
• Enlaces
  • Texto completo
• Dialnet Métricas: 1 Cita
• Resumen

  • Purpose – The study aims to propose a circular economy-based reverse logistics (CERL) that emphasises the mediation effect of reverse logistics (RL) on sustainable resource commitment and financial performance.

    Design/methodology/approach – The structural equation modelling (SEM) approach has been applied to analyse the data acquired through the survey method that included 113 vendors of automotive supplies of the 1st and 2nd levels.

    Findings – The results confirm that CERL acts as an essential intervening entity between resources and financial performance. The findings of the study have provided research and development (R&D) opportunities for the industries to find alternative revenue streams and generate profit from resource investment whilst upholding environmental standards through reverse logistic practices.

    Practical implications – Reverse logistic practices are the key components of a circular business model and a sustainable supply chain. The manufacturing companies need to explore critical enablers that can contribute to business productivity and financial growth.

    Originality/value – The study has validated a CERL model that portrays the circular economy’s resilient relationship with RL practices

• Referencias bibliográficas
  • Abbas, H. and Farooquie, J.A. (2020), “Reverse logistics practices in Indian pharmaceutical supply chains: a study of manufacturers”, International...
  • Ali, S.S., Paksoy, T., Torgul, B. and Kaur, R. (2020), “Reverse logistics optimisation of an industrial air conditioner manufacturing company...
  • Ambilkar, P., Dohale, V., Gunasekaran, A. and Bilolikar, V. (2021), “Product returns management: a comprehensive review and future research...
  • Autry, C.W., Daugherty, P.J. and Richey, R.G. (2001), “The challenge of reverse logistics in catalog retailing”, International Journal of...
  • Baah, C., Opoku-Agyeman, D., Acquah, I.S.K., Agyabeng-Mensah, Y., Afum, E., Faibil, D. and Abdoulaye, F.A.M. (2021), “Examining the correlations...
  • Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17, pp. 99-120.
  • Batista, L., Bourlakis, M., Smart, P. and Maull, R. (2018), “In search of a circular supply chain archetype–a content-analysis-based literature...
  • de Campos, E.A.R., de Paula, I.C., Pagani, R.N. and Guarnieri, P. (2017), “Reverse logistics for the endof-life and end-of-use products in...
  • Chan, C.K., Man, N., Fang, F. and Campbell, J.F. (2020), “Supply chain coordination with reverse logistics: a vendor/recycler-buyer synchronised...
  • Chen, X., Luo, Z. and Wang, X. (2017), “Impact of efficiency, investment, and competition on low carbon manufacturing”, Journal of Cleaner...
  • Centre for Remanufacturing and Reuse (CRR) (2015), “Remanufacturing in Malaysia an assessment of the current and future”, APEC Report, Vol....
  • Cohen, J. (1988), Statistical Power Analysis, 2nd ed., Erlbaum, Hillsdale, NJ.
  • Das, S., Lee, S.-H., Kumar, P., Kim, K.-H., Lee, S.S. and Bhattacharya, S.S. (2019), “Solid waste management: scope and the challenge of sustainability”,...
  • Daugherty, P.J., Richey, R.G., Genchev, S.E. and Chen, H. (2005), “Reverse logistics: superior performance through focused resource commitments...
  • Davcik, N.S. and Sharma, P. (2016), “Marketing resources, performance, and competitive advantage: a review and future research directions”,...
  • de Campos, E.A.R., de Paula, I.C., Ten Caten, C.S., Maçada, A.C.G., Mar^oco, J. and Ziegelmann, P.K. (2020), “The effect of collaboration...
  • Dev, N.K., Shankar, R. and Qaiser, F.H. (2020), “Industry 4.0 and circular economy: operational excellence for sustainable reverse supply...
  • Dutta, P., Talaulikar, S., Xavier, V. and Kapoor, S. (2021), “Fostering reverse logistics in India by prominent barrier identification and...
  • Fernando, Y. and Saththasivam, G. (2017), “Green supply chain agility in EMS ISO 14001 manufacturing firms: empirical justification of social...
  • Fernando, Y. and Tew, M.M. (2016), “Reverse logistics in manufacturing waste management: the missing link between environmental commitment...
  • Fernando, Y., Sharon, S.S.T.S.S.T., Wahyuni-Td, I.S.I.S. and Tundys, B. (2017), “The effects of reverse logistics on cost control abilities:...
  • Fernando, Y., Walters, T., Ismail, M.N., Seo, Y.W. and Kaimasu, M. (2018), “Managing project success using project risk and green supply chain...
  • Fernando, Y., Jabbour, C.J.C. and Wah, W.X. (2019), “Pursuing green growth in technology firms through the connections between environmental...
  • Fernando, Y., Abideen, A.Z. and Shaharudin, M.S. (2020), “The nexus of information sharing, technology capability and inventory efficiency”,...
  • Fernando, Y., Tseng, M.L., Sroufe, R., Abideen, A.Z., Shaharudin, M.S. and Jose, R. (2021a), “Eco-innovation impacts on recycled product performance...
  • Fernando, Y., Rozuar, N.H.M. and Mergeresa, F. (2021b), “The blockchain-enabled technology and carbon performance: insights from early adopters”,...
  • Gao, X. and Cao, C. (2020), “A novel multi-objective scenario-based optimisation model for sustainable reverse logistics supply chain network...
  • Garg, K., Kannan, D., Diabat, A. and Jha, P.C. (2015), “A multi-criteria optimisation approach to manage environmental issues in closed loop...
  • Geissdoerfer, M., Morioka, S.N., de Carvalho, M.M. and Evans, S. (2018), “Business models and supply chains for the circular economy”, Journal...
  • Giampieri, A., Ling-Chin, J., Ma, Z., Smallbone, A. and Roskilly, A.P. (2020), “A review of the current automotive manufacturing practice...
  • Govindan, K. and Soleimani, H. (2017), “A review of reverse logistics and closed-loop supply chains: a Journal of Cleaner Production focus”,...
  • Guarnieri, P., Cerqueira-Streit, J.A. and Batista, L.C. (2020), “Reverse logistics and the sectoral agreement of packaging industry in Brazil...
  • Hair, J.F., Risher, J.J., Sarstedt, M. and Ringle, C.M. (2019), “When to use and how to report the results of PLS-SEM”, European Business...
  • Hair, J.F., Jr., Hult, G.T.M., Ringle, C.M. and Sarstedt, M. (2022), A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM),...
  • Henseler, J., Ringle, C.M. and Sarstedt, M. (2015), “A new criterion for assessing discriminant validity in variance-based structural equation...
  • Hofmann, F.M. and Visagie, S.E. (2020), “Choosing reverse logistics channel structures for the return of end-of-life products”, Journal of...
  • Hopkins, M. (2012), The Planetary Bargain: Corporate Social Responsibility Matters, 2nd ed., Routledge, London.
  • Jonkute, G. and Stani _ skis, J.K. (2016), “Realising sustainable consumption and production in companies: the sustainable and responsible...
  • Julianelli, V., Caiado, R.G.G., Scavarda, L.F. and Cruz, S.P.D.M.F. (2020), “Interplay between reverse logistics and circular economy: critical...
  • Kirchoff, J.F., Tate, W.L. and Mollenkopf, D.A. (2018), “Resource commitment and sustainability: a reverse logistics performance process model”,...
  • Kitano, S. (2020), “Formation factors and effects on common property resource conservation of community farms”, Sustainability, Vol. 12 No....
  • Korhonen, J., Honkasalo, A. and Sepp€al€a, J. (2018), “Circular economy: the concept and its limitations”, Ecological Economics, Vol. 143,...
  • Lai, K.H., Wu, S.J. and Wong, C.W.Y. (2013), “Did reverse logistics practices hit the triple bottom line of Chinese manufacturers?”, International...
  • Li, Y. (2014), “Environmental innovation practices and performance: moderating effect of resource commitment”, Journal of Cleaner Production,...
  • Liu, S., Eweje, G., He, Q. and Lin, Z. (2020), “Turning motivation into action: a strategic orientation model for green supply chain management”,...
  • Lopez-Becerra, E.I. and Alcon, F. (2021), “Social desirability bias in the environmental economic valuation: an inferred valuation approach”,...
  • Mahindroo, A., Samalia, H.V. and Verma, P. (2018), “Moderated influence of return frequency and resource commitment on information systems...
  • Maiti, M., Krakovich, V., Shams, S.M.R. and Vukovic, D.B. (2020), “Resource-based model for small innovative enterprises”, Management Decision,...
  • Makarova, I., Shubenkova, K., Pashkevich, A. and Shepelev, V. (2018), “The role of reverse logistics in the transition to a circular economy”,...
  • Mao, H., Liu, S., Zhang, J. and Deng, Z. (2016), “Information technology resource, knowledge management capability, and competitive advantage:...
  • Maric, J. and Opazo-Basaez, M. (2019), “Green servitisation for flexible and sustainable supply chain operations: a review of reverse logistics...
  • MATREDE (2020), “Malaysia external trade development corporation: automotive components”, available at: https://www.matrade.gov.my/en/malaysian-exporters/services-for-exporters/trademarket-information/trade-statistics.
  • McDougall, N., Wagner, B. and MacBryde, J. (2019), “An empirical explanation of the natural-resourcebased view of the firm”, Production Planning...
  • Merli, R., Preziosi, M. and Acampora, A. (2018), “How do scholars approach the circular economy? A systematic literature review”, Journal...
  • Michalisin, M.D. and Stinchfield, B.T. (2010), “Climate change strategies and firm performance: an empirical investigation of the natural...
  • Mousa, S.K. and Othman, M. (2020), “The impact of green human resource management practices on sustainable performance in healthcare organisations:...
  • Ngu, H.J., Lee, M.D. and Osman, M.S.B. (2020), “Review on current challenges and future opportunities in Malaysia sustainable manufacturing:...
  • Nit¸a, C.G. and S¸tefea, P. (2014), “Cost control for business sustainability”, Procedia - Social and Behavioral Sciences, Vol. 124, pp. 307-311.
  • Passarini, F., Ciacci, L., Santini, A., Vassura, I. and Morselli, L. (2012), “Auto shredder residue LCA: implications of ASR composition evolution”,...
  • Pieroni, M.P., McAloone, T.C. and Pigosso, D.C. (2021), “Circular Economy business model innovation: sectorial patterns within manufacturing...
  • Pirttil€a, M., Virolainen, V.M., Lind, L. and K€arri, T. (2020), “Working capital management in the Russian automotive industry supply chain”,...
  • Prieto-Sandoval, V., Jaca, C. and Ormazabal, M. (2018), “Towards a consensus on the circular economy”, Journal of Cleaner Production, Vol....
  • Ringle, C.M. and Sarstedt, M. (2016), “Gain more insight from your PLS-SEM results the importanceperformance map analysis”, Industrial Management...
  • Rogers, D.S. and Tibben-Lembke, R.S. (1999), Going Backwards: Reverse Logistics Trends and Practices, Reverse Logistics Executive Council...
  • Richey, R.G. Jr, Musgrove, C.F., Gillison, S.T. and Gabler, C.B. (2014), “The effects of environmental focus and program timing on green marketing...
  • Sanni, S., Jovanoski, Z. and Sidhu, H.S. (2020), “An economic order quantity model with reverse logistics program”, Operations Research Perspectives,...
  • Saraiva, M.B., Ferreira, M.D.P., da Cunha, D.A., Daniel, L.P., Homma, A.K.O. and Pires, G.F. (2020), “Forest regeneration in the Brazilian...
  • Saxena, L.K., Jain, P.K. and Sharma, A.K. (2018), “Tactical supply chain planning for tyre remanufacturing considering carbon tax policy”,...
  • Shen, K.W., Li, L. and Wang, J.Q. (2020), “Circular economy model for recycling waste resources under government participation: a case study...
  • Sinkovics, N., Hoque, S.F. and Sinkovics, R.R. (2018), “Supplier strategies and routines for capability development: implications for upgrading”,...
  • Thierry, M., Solomon, M., Van Nunen, J. and Van Wassenhove, L. (1995), “Strategic issues in product recovery management”, Long Range Planning,...
  • Tosarkani, B.M., Amin, S.H. and Zolfagharinia, H. (2020), “A scenario-based robust possibilistic model for a multi-objective electronic reverse...
  • US ITC (2012), Remanufactured Goods: An Overview of the U.S. and Global Industries, U.S. International Trade Commission, Washington.
  • Vijayaraghavan, A., Yuan, C., Diaz, N., Fleschutz, T. and Helu, M. (2013), “Closed-loop production systems”, Green Manufacturing, Springer,...
  • Zaid, A.A., Jaaron, A.A.M.M., Talib Bon, A., Bon, A.T., Talib Bon, A. and Bon, A.T. (2018), “The impact of green human resource management...
  • Zhao, S., You, Z. and Zhu, Q. (2021), “Quality choice for product recovery considering a trade-in program and third-party remanufacturing...
  • Zhu, J., Fan, C., Shi, H. and Shi, L. (2019), “Efforts for a circular economy in China: a comprehensive review of policies”, Journal of Industrial...
  • Henseler, J., Dijkstra, T.K., Sarstedt, M., Ringle, C.M., Diamantopoulos, A., Straub, D.W., Ketchen, D.J., Hair, J.F., Hult, T.M. and Calantone,...