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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.

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.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:147:y:2014:i:pb:p:284-293
    DOI: 10.1016/j.ijpe.2013.06.028
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    References listed on IDEAS

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    Cited by:

    1. Geng, Ruoqi & Mansouri, S. Afshin & Aktas, Emel, 2017. "The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 245-258.
    2. Lai, Kee-hung & Wong, Christina W.Y. & Lam, Jasmine Siu Lee, 2015. "Sharing environmental management information with supply chain partners and the performance contingencies on environmental munificence," International Journal of Production Economics, Elsevier, vol. 164(C), pages 445-453.
    3. Stekelorum, Rebecca & Laguir, Issam & Lai, Kee-hung & Gupta, Shivam & Kumar, Ajay, 2021. "Responsible governance mechanisms and the role of suppliers’ ambidexterity and big data predictive analytics capabilities in circular economy practices improvements," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    4. Chen, Lujie & Zhao, Xiande & Tang, Ou & Price, Lydia & Zhang, Shanshan & Zhu, Wenwen, 2017. "Supply chain collaboration for sustainability: A literature review and future research agenda," International Journal of Production Economics, Elsevier, vol. 194(C), pages 73-87.
    5. Yuan Chen & Vinod Singhal & Qinghua Zhu, 2021. "Environmental policies and financial performance: stock market reaction to firms for their proactive environmental practices recognized by governmental programs," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1548-1562, May.
    6. Ataseven, Cigdem & Nair, Anand, 2017. "Assessment of supply chain integration and performance relationships: A meta-analytic investigation of the literature," International Journal of Production Economics, Elsevier, vol. 185(C), pages 252-265.
    7. Xin Lu & Fangchao Xu, 2018. "Empirical Research on EPR Practices Performance and Governance Mechanism from the Perspective of Green Supply Chain," Sustainability, MDPI, vol. 10(12), pages 1-17, November.
    8. Yunhui Zhao & Ningshuo Zhang & Taiwen Feng & Chuanli Zhao & Jianming Zhang, 2020. "The green spillover effect of green customer integration: Does internal integration matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 325-338, January.
    9. Björn Stöcker & Daniel Baier & Benedikt M. Brand, 2021. "New insights in online fashion retail returns from a customers’ perspective and their dynamics," Journal of Business Economics, Springer, vol. 91(8), pages 1149-1187, October.
    10. Huo, Baofeng & Gu, Minhao & Jiang, Bin, 2018. "China-related POM research: Literature review and suggestions for future research," International Journal of Production Economics, Elsevier, vol. 203(C), pages 134-153.

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