Linking forward and reverse supply chain investments: The role of business uncertainty

Abstract

This paper explores managerial efforts in reverse supply chains (RSC), where the focus is on the capture and exploitation of used products and materials. The RSC can potentially reduce negative environmental impacts of extracting virgin raw materials and waste disposal. If so, investment in the reverse supply chain should not be made in isolation, but instead must be integrated with investments selected to improve the forward supply chain. After defining and operationalizing these constructs, a survey of plant managers was used to empirically assess the linkages between supply chain investments, organizational risk propensity (i.e., willingness to take risk) and business uncertainty. Reverse supply chain investment had two primary dimensions: reconditioning (i.e., high-value recovery) and recycling and waste management (i.e., low-or no-value recovery). Ongoing investment in the forward supply chain was significantly related to investment in recycling and waste management, but not to investment in reconditioning. Moreover, risk propensity was found to mediate the relationship between the external business uncertainty and investment in the forward and reverse supply chain. #

Which One to Choose Multi Focus or Trade-Off Among Competitive Priorities? Evidence from Finnish SMEs

“…Likewise, [1] also has highlighted the importance of perceived business environment in investment decisions. Following this argument, we measured business environment through managerial perception.…”

“…Here, business environment refers to the external business uncertainty [1] meaning how private investor and business developer perceive business environment for investment and business development while competitiveness refers to the ability of a firm to gain better sales and market share, lower cost, higher productivity and profitability [2] in comparison to its competitors. To remain competitive, survive and grow in a rapidly changing environment, a firm needs to be adaptive to the environmental change [3,4].…”

A Risk Management Tool for the Reverse Supply Chain Network

“…The supply chain concept arose from a number of changes in the manufacturing environment, including the rising costs of manufacturing, the shrinking resources of manufacturing bases, shortened product life cycles, and the globalization of market economies (Beamon 1998). The primary objective of supply chain management is to improve performance in areas such as procurement and to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory and labor (Kocabasoglu et al 2007). …”

“…The reverse supply chain refers to the series of activities necessary to remove new or used products from a customer for the purpose of recycling, remanufacturing, and re using the product (Kocabasoglu et al 2007). This chain is traditionally characterized by a backward flow of materials.…”

“…The research performed can be further developed with the intention of expanding the decision structure and collecting data that is currently unavailable electronically or data that is recorded in other areas and departments of the organization. Kocabasoglu et al (2007) explored managerial efforts in reverse supply chains, where the focus in on the capture and exploitation of used products and materials. They believed investment in the reverse supply chain should not be made in isolation, but instead must be integrated with investments selected to improve the forward supply chain.…”