Title: The effects of reverse logistics on cost control abilities: an insight into manufacturing companies in Malaysia

Authors: Yudi Fernando; Shih Sim Tan Sharon; Ika Sari Wahyuni-TD; Blanka Tundys

Addresses: Faculty of Industrial Management, Universiti Malaysia Pahang, 26300, Malaysia; Management Department, BINUS Online Learning, Bina Nusantara University, 11530, Indonesia ' Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia ' Department of Accounting, Faculty of Economics, Kampus Limau Manih, Universitas Andalas, 25163 Padang, Indonesia ' Department of Logistics, Faculty of Management and Economics of Services, University of Szczecin, 71-101 Szczecin, Poland

Abstract: This study aims to examine the effect of reverse logistics on the ability of manufacturing firms to control costs. The data were collected from manufacturing firms registered under the Federation of Malaysia Manufacturers (FMM). A total of 275 manufacturing firms participated in this survey. The variance-based structural equation modelling (SEM) with the partial least square (PLS) was used to validate the measurement constructs and test the proposed hypotheses. The statistical results indicated that three dimensions constructs of reverse logistics: (1) remanufacturing; (2) material recycling; (3) green disposal have a significant and positive relation with the ability of firms to control costs. The firms need to practice green operations and sustainability orientation activities to maintain lower costs, improve the quality of products, stakeholders' well-being and lower carbon footprint for greener environments.

Keywords: reverse logistics; remanufacturing; material recycling; green disposal; operations strategy; Malaysia.

DOI: 10.1504/IJVCM.2017.089377

International Journal of Value Chain Management, 2017 Vol.8 No.4, pp.285 - 306

Received: 24 Oct 2016
Accepted: 25 Mar 2017
Published online: 22 Jan 2018 *

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