Reverse logistics innovation, institutional pressures and performance

Abstract

Purpose – The purpose of this study is to draw on several perspectives rarely used in reverse logistics (RL) research – such as sustainable development, the natural resource-based view and green innovation – to examine the relationship between RL innovation and environmental and economic performance while incorporating institutional theory to verify how institutional pressures moderate these relationships. Design/methodology/approach – A questionnaire survey is used to investigate Taiwan's electrical, electronic and information industries, as well as maintenance and retail stores selling computers, communications and consumer electronics. First, a hierarchical regression analysis is used. Next, moderating relationships are examined along with the related regulatory, competitor and customer pressures. Findings – The results indicate that RL innovation is positively associated with environmental and economic performance. Moreover, three institutional pressures positively moderated the relationships between RL innovation and environmental performance. However, investment in greater RL innovation under higher-level institutional pressures did not always enhance economic performance. Research limitations/implications – Reverse logistics innovation comprises five components, one of which is cross-functional integration, the process of obtaining information from marketing, production and logistics managers about how their firms created the marketing-operations interface to better handle RL. However, we obtained RL innovation information only from individual respondents. In addition, this study focuses on the economic and environmental aspects of RL activities. Future studies should apply the RL perspective on social sustainability to probe RL issues from sustainability's environmental, social and economic points of views. Practical implications – Contrary to the conventional wisdom that RL imposes costs, reduces productivity and curbs competitiveness, this study finds that RL innovation can enrich environmental and economic performances, indicating that firms with more innovative RL capabilities yield more sustainable outcomes for environmental protection, social responsibility and economic performance. Originality/value – This study contributes to the RL literature by applying multiple perspectives – including sustainable development, the natural resource-based view and green innovation – to explore the relationship between RL innovation and performance while using institutional theory to probe the moderating effects of institutional pressures on RL innovation and performance.

Reverse exchange: classifications for public service SCM

“…While only tested in healthcare, the nature of other public services could also generate distress and unintended consequences for RE. This echoes the need to develop customisation capabilities, flexibility and cross-functional integration for service SCM process flows to increase utility (Huang and Yang, 2013;Chen et al, 2013). The more involved the patient and the greater the degree of closeness to the RE, the harder the challenge to mimic best practice and legitimise the reverse flow.…”

“…Normative drivers can exert influence due to the social obligation to comply (March and Olsen, 1976). Normative pressures can force organisations to implement reverse flows in order to be perceived as being more legitimate (Huang and Yang, 2013) and socially responsible. Improving reverse flows and exchanges provides public service managers with the opportunity to enhance the standing of their organisation within their peer/ stakeholder groups and wider society (Ellram et al, 2004).…”

How Do Technological Skills Improve Reverse Logistics? The Moderating Role of Top Management Support in Information Technology Use and Innovativeness

“…We can define innovativeness as the organization's adoption of new technologies earlier than peers [56] or the discovery oforiginal solutions to problems [33]. RL depends more intensely on innovation than other processes because reverse flows are so different from forward, requiring different treatment and greater investment in resources [34]. Organizations that dedicate attention to RL processes and remain current with changes in technology will be better able to adopt new technologies to excel in RL and, in turn, in market performance [31].…”

“…Innovativeness, on the other hand, makes firms adopt new technologies earlier [31] and implies seeking creative or novel solutions to problems [33]. Companies must innovate to succeed in RL, which differs from forward logistics and outbound flows, requiring dedication of further resources and special handling [34]. Organizational creativity and flexibility are two essential elements of innovativeness that help organizations to meet this need, as they enhanceemployees' technological skills, improving RL performance [31,35].…”

Reverse and Inverse Logistic Models for Solid Waste Management

“…Perspectives of IL used for research development in sustainable development, theory of natural resources, and green innovation. These perspectives allow examination of the relationship between innovation, environmental performance, and economy, at the same time incorporates the institutional theory to verify how institutional pressures moderate such relationships [75].…”