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Critical barriers in implementing reverse logistics in the Chinese manufacturing sectors

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  • Abdulrahman, Muhammad D.
  • Gunasekaran, Angappa
  • Subramanian, Nachiappan
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    Abstract

    Reverse logistics (RL) is gaining momentum worldwide due to global awareness and as a consequence of resource depletion and environmental degradation. Firms encounter RL implementation challenges from different stakeholders, both internally and externally. On the one hand, various governmental agencies are coming out with different environmental regulations while on the other hand academics and researchers are contributing solutions and suggestions in different country contexts. In a real sense however, the benefits of RL implementation is not yet fully realized in the emerging economies. This paper proposes a theoretical RL implementation model and empirically identifies significant RL barriers with respect to management, financial, policy and infrastructure in the Chinese manufacturing industries such as automotive, electrical and electronic, plastics, steel/construction, textiles and paper and paper based products. Key barriers from our study, with respect to these four categories, are: within management category a lack of reverse logistics experts and low commitment, within financial category a lack of initial capital and funds for return monitoring systems, within policy category a lack of enforceable laws and government supportive economic policies and, finally, within infrastructure category a the lack of systems for return monitoring. Contingency effect of ownership was carried out to understand the similarities and differences in RL barriers among the multinational firms and domestic firms investigated.

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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: 460-471

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    Handle: RePEc:eee:proeco:v:147:y:2014:i:pb:p:460-471

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

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    Keywords: Barriers; China; Manufacturing; Reverse logistics;

    References

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    1. 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.
    2. Quariguasi Frota Neto, J. & Bloemhof-Ruwaard, J.M. & van Nunen, J.A.E.E. & van Heck, H.W.G.M., 2006. "Designing and Evaluating Sustainable Logistics Networks," ERIM Report Series Research in Management ERS-2006-003-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    3. 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.
    4. Rahman, Shams & Subramanian, Nachiappan, 2012. "Factors for implementing end-of-life computer recycling operations in reverse supply chains," International Journal of Production Economics, Elsevier, vol. 140(1), pages 239-248.
    5. Gunasekaran, Angappa & Ngai, Eric W.T., 2012. "The future of operations management: An outlook and analysis," International Journal of Production Economics, Elsevier, vol. 135(2), pages 687-701.
    6. Hassini, Elkafi & Surti, Chirag & Searcy, Cory, 2012. "A literature review and a case study of sustainable supply chains with a focus on metrics," International Journal of Production Economics, Elsevier, vol. 140(1), pages 69-82.
    7. Ciliberti, Francesco & Pontrandolfo, Pierpaolo & Scozzi, Barbara, 2008. "Logistics social responsibility: Standard adoption and practices in Italian companies," International Journal of Production Economics, Elsevier, vol. 113(1), pages 88-106, May.
    8. Zailani, Suhaiza & Jeyaraman, K. & Vengadasan, G. & Premkumar, R., 2012. "Sustainable supply chain management (SSCM) in Malaysia: A survey," International Journal of Production Economics, Elsevier, vol. 140(1), pages 330-340.
    9. Chaabane, A. & Ramudhin, A. & Paquet, M., 2012. "Design of sustainable supply chains under the emission trading scheme," International Journal of Production Economics, Elsevier, vol. 135(1), pages 37-49.
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