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Reverse logistics in Malaysia: The Contingent role of institutional pressure

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  • Khor, Kuan Siew
  • Udin, Zulkifli Mohamed
  • Ramayah, Thurasamy
  • Hazen, Benjamin T.

Abstract

Reverse logistics is a primary component of green supply chain management initiatives and is often analysed from a broad perspective. Rooted in the resource-based view of the firm, this empirical study decomposes reverse logistics into five commonly adopted disposition options (repair, recondition, remanufacture, recycle, and disposal) to examine the effects of using each option on measures of environmental performance, profitability, and sales growth. Considering institutional theory, this study also investigates the moderating role of both regulatory and ownership pressure on the relationship between each reverse logistics disposition option and levels of performance. Using survey data collected from managers at 89 ISO14001 certified electrical and electronic equipment manufacturing firms, regression models test a series of hypothesized relationships. Results suggest that under the presence of institutional pressure, use of disposition options results in increased levels of performance in some cases. The recovery of valuable components during product recondition and remanufacture activities contributes to enhanced environmental and economic benefits. Conversely, product recycling and disposal activities are not necessarily performance-inducing initiatives in the face of regulatory pressures The findings of this study can be used to inform business decisions regarding the adoption and use of reverse logistics strategies. Legislative frameworks regarding extended producer responsibility are recommended in order to motivate the implementation of reverse logistics product disposition activities.

Suggested Citation

  • Khor, Kuan Siew & Udin, Zulkifli Mohamed & Ramayah, Thurasamy & Hazen, Benjamin T., 2016. "Reverse logistics in Malaysia: The Contingent role of institutional pressure," International Journal of Production Economics, Elsevier, vol. 175(C), pages 96-108.
    • Handle: RePEc:eee:proeco:v:175:y:2016:i:c:p:96-108
    DOI: 10.1016/j.ijpe.2016.01.020
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    6. Syed Mithun Ali & Asraf Arafin & Md. Abdul Moktadir & Towfique Rahman & Nuzhat Zahan, 2018. "Barriers to Reverse Logistics in the Computer Supply Chain Using Interpretive Structural Model," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(1), pages 53-68, March.
    7. Chen, Daqiang & Ignatius, Joshua & Sun, Danzhi & Zhan, Shalei & Zhou, Chenyu & Marra, Marianna & Demirbag, Mehmet, 2019. "Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness," International Journal of Production Economics, Elsevier, vol. 217(C), pages 197-210.
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    9. Seles, Bruno Michel Roman Pais & de Sousa Jabbour, Ana Beatriz Lopes & Jabbour, Charbel José Chiappetta & Dangelico, Rosa Maria, 2016. "The green bullwhip effect, the diffusion of green supply chain practices, and institutional pressures: Evidence from the automotive sector," International Journal of Production Economics, Elsevier, vol. 182(C), pages 342-355.
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    11. Ekta Sinha, 2022. "Circular economy—A way forward to Sustainable Development: Identifying Conceptual Overlaps and Contingency Factors at the Microlevel," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 771-783, August.
    12. Cricelli, Livio & Greco, Marco & Grimaldi, Michele, 2021. "An investigation on the effect of inter-organizational collaboration on reverse logistics," International Journal of Production Economics, Elsevier, vol. 240(C).
    13. Nguyen Hoang Phuong, 2019. "A Short Communication On Reverse Logistics Role In The Supply Chain," Information Management and Computer Science (IMCS), Zibeline International Publishing, vol. 2(1), pages 10-14, August.
    14. Gunasekara, Lahiru & Robb, David J. & Zhang, Abraham, 2023. "Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions," International Journal of Production Economics, Elsevier, vol. 260(C).
    15. Xiao, Chengyong & Wang, Qian & van Donk, Dirk Pieter & van der Vaart, Taco, 2018. "When are stakeholder pressures effective? An extension of slack resources theory," International Journal of Production Economics, Elsevier, vol. 199(C), pages 138-149.
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    17. David G Hyatt & Nicholas Berente, 2017. "Substantive or Symbolic Environmental Strategies? Effects of External and Internal Normative Stakeholder Pressures," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1212-1234, December.

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