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

Authors: Yudi Fernando; Mei-Mei Tew

Addresses: Graduate School of Business, Universiti Sains Malaysia, Penang, 11800, Malaysia ' Graduate School of Business, Universiti Sains Malaysia, Penang, 11800, Malaysia

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.

Keywords: green manufacturing; supply chain management; SCM; integration; E&E; electrical and electronics industry; ISO 14001; zero waste; environmental sustainability; reuse; remanufacturing; scrap recycling; Malaysia; reverse logistics; manufacturing waste management; environmental commitment; operational performance; natural RBV; resource-based view; NRBV; structural equation modelling; SEM; partial least squares; PLS; waste reduction.

DOI: 10.1504/IJISM.2016.081273

International Journal of Integrated Supply Management, 2016 Vol.10 No.3/4, pp.264 - 282

Received: 14 Nov 2015
Accepted: 14 Aug 2016

Published online: 01 Jan 2017 *

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