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Reverse logistics in manufacturing waste management: the missing link between environmental commitment and operational performance

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  • Yudi Fernando
  • Mei-Mei Tew

Abstract

This paper aims to investigate empirical justification on the missing link of environmental commitment (EC) to improve manufacturing firms' operational performance (OP) with reverse logistics (RL) as an intervening variable. The model was developed based on natural resource-based view (NRBV) theory. Research sample was the electronics and electrical (E%E) manufacturing firms. The model was tested using software for variance-based structural equation modelling (SEM) with the partial least squares (PLS) method. The results showed positive results for developed hypotheses on direct and indirect models. This study therefore, suggested that manufacturing firms should select the most appropriate methods of waste reduction for business survival. The manufacturing firms could use RL technique to transform a recycled scrap into finished products with high quality and zero waste concept for environmental sustainability.

Suggested Citation

  • Yudi Fernando & Mei-Mei Tew, 2016. "Reverse logistics in manufacturing waste management: the missing link between environmental commitment and operational performance," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 10(3/4), pages 264-282.
    • Handle: RePEc:ids:ijisma:v:10:y:2016:i:3/4:p:264-282
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