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The role of customer integration in extended producer responsibility: A study of Chinese export manufacturers

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  • Lai, Kee-hung
  • Wong, Christina W.Y.
  • Venus Lun, Y.H.
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    Abstract

    Extended producer responsibility (EPR) is increasingly emphasized by manufacturing enterprises to improve eco-efficiency and to satisfy the growing environmental requirements expected in the market. This trend is salient for export-oriented manufacturers mandated to comply with environmental regulatory requirements before entry is granted for their products in the requisite overseas countries. Drawing on the contingency theory, we examine the EPR practices undertaken by export-oriented manufacturers and the market and financial performance outcomes when such practices are characterized with low and high levels of customer integration in their implementation. Survey data collected from 134 manufacturing exporters in China show positive association of EPR practices with the performance outcomes. Using split group analysis, we found performance differences between the high and low manufacturer groups in customer integration for their EPR practices implementation. Particularly, the high customer integration group achieves better market performance whereas the low group weak in customer integration reap greater financial benefits. Managers need to understand the role of customer integration and the financial and market performance implications of implementing EPR practices to align with their performance goals and to build their supply chain system capabilities in the age of global complexity.

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    Bibliographic Info

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

    Volume (Year): 147 (2014)
    Issue (Month): PB ()
    Pages: 284-293

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    Handle: RePEc:eee:proeco:v:147:y:2014:i:pb:p:284-293

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

    Related research

    Keywords: Environmental Management; Manufacturing; China; Empirical; Export;

    References

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    1. 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.
    2. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    3. Wong, Christina W.Y. & Lai, Kee-hung & Cheng, T.C.E. & Lun, Y.H. Venus, 2012. "The roles of stakeholder support and procedure-oriented management on asset recovery," International Journal of Production Economics, Elsevier, vol. 135(2), pages 584-594.
    4. Gunasekaran, Angappa & Lai, Kee-hung & Edwin Cheng, T.C., 2008. "Responsive supply chain: A competitive strategy in a networked economy," Omega, Elsevier, vol. 36(4), pages 549-564, August.
    5. Law, Kris M.Y. & Gunasekaran, Angappa, 2012. "Sustainability development in high-tech manufacturing firms in Hong Kong: Motivators and readiness," International Journal of Production Economics, Elsevier, vol. 137(1), pages 116-125.
    6. Gunasekaran, Angappa & Spalanzani, Alain, 2012. "Sustainability of manufacturing and services: Investigations for research and applications," International Journal of Production Economics, Elsevier, vol. 140(1), pages 35-47.
    7. Yang, Jie & Wang, Jinjun & Wong, Christina W.Y. & Lai, Kee-Hung, 2008. "Relational stability and alliance performance in supply chain," Omega, Elsevier, vol. 36(4), pages 600-608, August.
    8. Ayres, Robert & Ferrer, Geraldo & Van Leynseele, Tania, 1997. "Eco-efficiency, asset recovery and remanufacturing," European Management Journal, Elsevier, vol. 15(5), pages 557-574, October.
    9. Yang, Ma Ga (Mark) & Hong, Paul & Modi, Sachin B., 2011. "Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 129(2), pages 251-261, February.
    10. Wong, Christina W.Y. & Lai, Kee-hung & Ngai, E.W.T., 2009. "The role of supplier operational adaptation on the performance of IT-enabled transport logistics under environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 122(1), pages 47-55, November.
    11. Chung, Chun-Jen & Wee, Hui-Ming, 2008. "Green-component life-cycle value on design and reverse manufacturing in semi-closed supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 528-545, June.
    12. Lai, Kee-hung & Wong, Christina W.Y., 2012. "Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters," Omega, Elsevier, vol. 40(3), pages 267-282.
    13. Yang, Jie & Wong, Christina W.Y. & Lai, Kee-hung & Ntoko, Alfred Ngome, 2009. "The antecedents of dyadic quality performance and its effect on buyer-supplier relationship improvement," International Journal of Production Economics, Elsevier, vol. 120(1), pages 243-251, July.
    14. Lai, Kee-hung & Wu, Sarah J. & Wong, Christina W.Y., 2013. "Did reverse logistics practices hit the triple bottom line of Chinese manufacturers?," International Journal of Production Economics, Elsevier, vol. 146(1), pages 106-117.
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