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Did reverse logistics practices hit the triple bottom line of Chinese manufacturers?

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  • Lai, Kee-hung
  • Wu, Sarah J.
  • Wong, Christina W.Y.
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    Abstract

    Reverse logistics (RL) practices represent an important and emerging trend in China's manufacturing practices. An increasing number of Chinese manufacturers have integrated RL practices in their operations to develop sustainable competitive advantage. There are six broad aspects of practicing RL which include waste management, recycling, reuse, reprocessing, materials recovery, and design for RL. The literature remains unclear, in particular Chinese manufacturing context, as to how these RL practices are related to organizational bottom line with respect to operational, financial, and social performance outcomes. Using survey data collected from Chinese export-oriented manufacturers, we applied seemingly unrelated regressions to determine if these six RL practices contribute to these three performance parameters simultaneously. The theory of production frontier is used to characterize the RL practices adoption and the performance implications. Our results indicate that the adoption of RL practices by Chinese manufacturers generates substantial environmental and financial gains, but not social benefits. This study extends the frontier of managerial knowledge for Chinese manufacturers by highlighting the emerging trends in RL practices and providing evidence on the business value of adopting RL practices.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 146 (2013)
    Issue (Month): 1 ()
    Pages: 106-117

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    Handle: RePEc:eee:proeco:v:146:y:2013:i:1:p:106-117

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    Web page: http://www.elsevier.com/locate/ijpe

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    Keywords: Triple bottom line; Manufacturing; China; Reverse logistics;

    References

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    1. Lai, Kee-hung & Cheng, T. C. Edwin, 2005. "Effects of quality management and marketing on organizational performance," Journal of Business Research, Elsevier, vol. 58(4), pages 446-456, April.
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    12. Wong, Christina W.Y. & Lai, Kee-hung & Shang, Kuo-Chung & Lu, Chin-Shan & Leung, T.K.P., 2012. "Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance," International Journal of Production Economics, Elsevier, vol. 140(1), pages 283-294.
    13. Zhu, Qinghua & Sarkis, Joseph & Cordeiro, James J. & Lai, Kee-Hung, 2008. "Firm-level correlates of emergent green supply chain management practices in the Chinese context," Omega, Elsevier, vol. 36(4), pages 577-591, August.
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    15. Min, Hokey & Ko, Hyun-Jeung, 2008. "The dynamic design of a reverse logistics network from the perspective of third-party logistics service providers," International Journal of Production Economics, Elsevier, vol. 113(1), pages 176-192, May.
    16. Shameek Konar & Mark A. Cohen, 2001. "Does The Market Value Environmental Performance?," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 281-289, May.
    17. Zhu, Qinghua & Sarkis, Joseph & Lai, Kee-hung, 2008. "Green supply chain management implications for "closing the loop"," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(1), pages 1-18, January.
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    Cited by:
    1. Lai, Kee-hung & Wong, Christina W.Y. & Venus Lun, Y.H., 2014. "The role of customer integration in extended producer responsibility: A study of Chinese export manufacturers," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 284-293.

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