Factors that influence the implementation of reverse logistics in manufacturing firms: The mediating role of sustainable supply chain initiatives

• Main Authors: Candelario, James Marcus Donato, Go, Frances Renee Rivera, Hong, Hallie Jheska Tan, Lee, Danica Denise Litonjua
• Format: text
• Language: English
• Published: Animo Repository 2021
• Subjects: Industrial ecology; Business logistics; Sustainability; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etdb_dsi/15; https://animorepository.dlsu.edu.ph/context/etdb_dsi/article/1012/viewcontent/hong_Redacted.pdf
• Institution: De La Salle University

Reverse logistics has become increasingly relevant, as companies across all industries make the shift towards more sustainable practices. Businesses are expected to address the long-term effects of their operations, and one method to do so while differentiating themselves from competitors is through reverse logistics. The objective of this study is to determine the mediating effect of sustainable supply chain initiatives on the relationship between the factors and reverse logistics in manufacturing firms. Thus, the researchers employed Structural Equation Modeling (SEM), and it was conducted in two levels using the SmartPLS 3.0 program. The Confirmatory Factor Analysis was performed to verify the validity and fit of the measures, while the regression analysis was utilized to better quantify the mediation effects. Managers, supervisors, business executives, and officers of manufacturing businesses in the Philippine Economic Zone Authority (PEZA) - Laguna Technopark were sent online survey questionnaires. From which, the researchers received 71 responses from a population of 130 manufacturing firms. Given the responses, the study has concluded that green packaging has a significant positive mediating effect on the relationship between the social factors and reverse logistics in manufacturing firms. As for direct effects, social factors were found to have a significant positive effect on green purchasing, green manufacturing, and green packaging. Among the sustainable supply chain initiatives, green packaging was found to have a significant positive effect on reverse logistics. In light of these findings, the researchers recommend that manufacturing firms and other stakeholders explore incorporating reverse logistics into their operations in order to improve global competitiveness and reduce negative environmental impacts. Because social factors have been identified as a key motivator in several cases, the academe and future researchers can focus on studying the variables surrounding social factors like green image for strategic objectives, green image enhancement for competitiveness, and community expectations. Meanwhile, the researchers recommend that local and national governments use public awareness campaigns and increased funding to invest in innovative and green technology to educate the public about the significance of partaking in an eco-friendly purchasing and manufacturing. All of these can help in contributing to the promotion and development of long-term solutions that will help the country's supply chain and logistics operations become more innovative and sustainable.