Exploring Disposition Decision for Sustainable Reverse Logistics in the Era of A Circular Economy: Applying the Triple Bottom Line Approach in the Manufacturing Industry

Document Type: Research Paper

Authors

1 School of Management, Jiangsu University, Zhenjiang, China

2 School of International Business, Yuexiu University, Zhejiang, China

3 Lyallpur Business School, Government College University, Faisalabad, Pakistan

Abstract

In recent times, the circular economy has gained much attention due to its emphasis on sustainability. Likewise, reverse logistics also plays a significant role in embracing and practical implications of the circular economy in the supply chain process. Disposition is among the critical factors that can strongly relate to reverse logistics in the light of sustainable practices. It also improves the overall operative productivity of reverse logistics. This study's primary goal is to investigate the concept of reverse logistics in the Pakistan textile manufacturing industry. Disposition decision effects using a triple bottom line that includes environmental, economic, and social performance under reverse logistics were also examined. Disposition decisions methodology and a triple bottom line approach were used for study hypothesis development. A survey-based approach was adopted using an online questionnaire technique by sending emails to 400 textile manufacturers in Pakistan. This study applied PLS (SEM) to test the hypothesis. Moreover, results also disclose positive linkage with triple bottom line performance. This research will be opening a new research paradigm for academicians, industries, and policymakers for the effective improvement in overall textile manufacturing reverse logistics.

Keywords


Agrawal, S., and Singh, R. K. (2019). Analyzing disposition decisions for sustainable reverse logistics: Triple Bottom Line approach. Resources, Conservation and Recycling, Vol. 150, pp. 104448.

Ahmad, S., Wong, K. Y., and Rajoo, S. (2019). Sustainability indicators for manufacturing sectors: A literature survey and maturity analysis from the triple-bottom line perspective. Journal of Manufacturing Technology Management, Vol. 30(2), pp. 312-334.

Ahmed, S. M., Karmaker, C. L., Doss, D., and Khan, A. H. (2020). Modelling the barriers in managing closed loop supply chains of automotive industries in Bangladesh. International Journal of Supply and Operations Management, Vol. 7(1), pp. 76-92.

Ali, F., Rasoolimanesh, S. M., Sarstedt, M., Ringle, C. M., and Ryu, K. (2018). An assessment of the use of partial least squares structural equation modeling (PLS-SEM) in hospitality research. International Journal of Contemporary Hospitality Management, Vol. 30(1), pp. 514-538.

Andalib Ardakani, D., and Soltanmohammadi, A. (2019). Investigating and analysing the factors affecting the development of sustainable supply chain model in the industrial sectors. Corporate Social Responsibility and Environmental Management, Vol. 26(1), pp. 199-212.

Anwar, S. F. (2018). Green supply chain management in manufacturing Organizations of Pakistan: practices and performance. Bahria University Islamabad Campus.  

Arshad, M., and Arshad, D. (2019). Internal capabilities and SMEs performance: A case of textile industry in Pakistan. Management Science Letters, Vol. 9(4), pp. 621-628.

Arunachalam, D., Kumar, N., and Kawalek, J. P. (2018). Understanding big data analytics capabilities in supply chain management: Unravelling the issues, challenges and implications for practice. Transportation Research Part E: Logistics and Transportation Review, Vol. 114, pp. 416-436.

Asees Awan, M., and Ali, Y. (2019). Sustainable modeling in reverse logistics strategies using fuzzy MCDM: Case of China Pakistan Economic Corridor. Management of Environmental Quality: An International Journal. Vol.30(5), pp. 1132-1151.

Attia, A. (2015). Testing the effect of marketing strategy alignment and triple-A supply chain on performance in Egypt. EuroMed Journal of Business, Vol. 10(2), 163-180.

Badenhorst, A. (2018). What practice can learn from theory: The potential impact of disposition decision factors on organisational performance. Journal of Transport and Supply Chain Management, Vol. 12(1), pp. 1-16.

Banihashemi, T. A., Fei, J., and Chen, P. S.-L. (2019). Exploring the relationship between reverse logistics and sustainability performance: A literature review. Modern Supply Chain Research and Applications. Vol. 1(1) pp. 2-27.

Burucuoglu, M., and Erdogan, E. (2019). Evaluation of Young Consumers' Remanufactured Products Purchase Intention Within Context of Extended Planned Behavior Theory The Circular Economy and Its Implications on Sustainability and the Green Supply Chain (pp. 246-264): IGI Global.

Butzer, S., Schötz, S., Petroschke, M., and Steinhilper, R. (2017). Development of a performance measurement system for international reverse supply chains. Procedia Cirp, Vol. 61, pp. 251-256.

Campagnolo, L., Carraro, C., Eboli, F., Farnia, L., Parrado, R., and Pierfederici, R. (2018). The ex-ante evaluation of achieving sustainable development goals. Social Indicators Research, Vol. 136(1), pp. 73-116.

Chaowanapong, J., Jongwanich, J., and Ijomah, W. (2018). The determinants of remanufacturing practices in developing countries: Evidence from Thai industries. Journal of cleaner production, Vol. 170, pp. 369-378.

Cheah, J.-H., Sarstedt, M., Ringle, C. M., Ramayah, T., and Ting, H. (2018). Convergent validity assessment of formatively measured constructs in PLS-SEM: On using single-item versus multi-item measures in redundancy analyses. International Journal of Contemporary Hospitality Management, Vol. 30(11), pp. 3192-3210.

Clayton, T., and Radcliffe, N. (2018). Sustainability: a systems approach: Routledge.

Cruz-Cárdenas, J., and Arévalo-Chávez, P. (2018). Consumer behavior in the disposal of products: Forty years of research. Journal of Promotion Management, Vol. 24(5), pp. 617-636.

De Angelis, R., Howard, M., and Miemczyk, J. (2018). Supply chain management and the circular economy: towards the circular supply chain. Production Planning & Control, Vol. 29(6), pp. 425-437.

De Clercq, D., Thongpapanl, N., and Voronov, M. (2018). Sustainability in the face of institutional adversity: market turbulence, network embeddedness, and innovative orientation. Journal of Business Ethics, Vol. 148(2), pp. 437-455.

de Oliveira, J. F. G., and Trindade, T. C. G. (2018). Sustainability Performance Evaluation of Renewable Energy Sources: The Case of Brazil: Springer.

Dissanayake, C. K., and Cross, J. A. (2018). Systematic mechanism for identifying the relative impact of supply chain performance areas on the overall supply chain performance using SCOR model and SEM. International Journal of Production Economics, Vol. 201, pp. 102-115.

Do Prado, G. F., Piekarski, C. M., da Luz, L. M., de Souza, J. T., Salvador, R., and de Francisco, A. C. (2019). Sustainable development and economic performance: Gaps and trends for future research. Sustainable Development.

Duan, Y., and Aloysius, J. A. (2019). Supply chain transparency and willingness-to-pay for refurbished products. The International Journal of Logistics Management.

Dubey, R., Gunasekaran, A., Papadopoulos, T., Childe, S. J., Shibin, K., and Wamba, S. F. (2017). Sustainable supply chain management: framework and further research directions. Journal of cleaner production, Vol. 142, pp. 1119-1130.

Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts: Routledge.

Falinski, M. M., Plata, D. L., Chopra, S. S., Theis, T. L., Gilbertson, L. M., and Zimmerman, J. B. (2018). A framework for sustainable nanomaterial selection and design based on performance, hazard, and economic considerations. Nature nanotechnology, Vol. 13(8), pp. 708-714.

Fang, X., Zhou, B., Tu, X., Ma, Q., and Wu, J. (2018). "What kind of a science is sustainability science?" An evidence-based reexamination. Sustainability, Vol. 10(5), pp. 1478.

Farooq, O., Farooq, M., and Reynaud, E. (2019). Does Employees' Participation in Decision Making Increase the level of Corporate Social and Environmental Sustainability? An Investigation in South Asia. Sustainability, Vol. 11(2), pp. 511.

Feng, M., Yu, W., Wang, X., Wong, C. Y., Xu, M., and Xiao, Z. (2018). Green supply chain management and financial performance: The mediating roles of operational and environmental performance. Business Strategy and the Environment, Vol. 27(7), pp. 811-824.

Ford, T. L. (2018). Sustainability Strategies for Small Business Survival beyond 5 Years. Walden University.  

Gallagher, V. C., Hrivnak, M. W., Valcea, S., Mahoney, C. B., and LaWong, D. (2018). A comprehensive three‐dimensional sustainability measure: The 'missing P'of 'people'–a vital stakeholder in sustainable development. Corporate Social Responsibility and Environmental Management, Vol. 25(5), pp. 772-787.

Gaustad, G., Krystofik, M., Bustamante, M., and Badami, K. (2018). Circular economy strategies for mitigating critical material supply issues. Resources, Conservation and Recycling, Vol. 135, pp. 24-33.

Ghasemaghaei, M., Ebrahimi, S., and Hassanein, K. (2018). Data analytics competency for improving firm decision making performance. The Journal of Strategic Information Systems, Vol. 27(1), pp. 101-113.

Govindan, K., and Bouzon, M. (2018). From a literature review to a multi-perspective framework for reverse logistics barriers and drivers. Journal of cleaner production, Vol. 187, pp. 318-337.

Hair, J. F., Risher, J. J., Sarstedt, M., and Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, Vol. 31(1), pp. 2-24.

Hasegawa, S., Kinoshita, Y., Yamada, T., and Bracke, S. (2019). Life cycle option selection of disassembly parts for material-based CO2 saving rate and recovery cost: Analysis of different market value and labor cost for reused parts in German and Japanese cases. International Journal of Production Economics, Vol. 213, pp. 229-242.

Hazen, B. T., Skipper, J. B., Ezell, J. D., and Boone, C. A. (2016). Big Data and predictive analytics for supply chain sustainability: A theory-driven research agenda. Computers & Industrial Engineering, Vol. 101, pp. 592-598.

Hollos, D., Blome, C., and Foerstl, K. (2012). Does sustainable supplier co-operation affect performance? Examining implications for the triple bottom line. International Journal of Production Research, Vol. 50(11), pp. 2968-2986.

Ikhlayel, M. (2018). An integrated approach to establish e-waste management systems for developing countries. Journal of cleaner production, Vol. 170, pp. 119-130.

Jia, F., Zuluaga-Cardona, L., Bailey, A., and Rueda, X. (2018). Sustainable supply chain management in developing countries: An analysis of the literature. Journal of cleaner production, Vol. 189, pp. 263-278.

Khairi, S. S. M., and Ghani, R. A. M. (2019). Analysis of social networking sites on academic performance among university students: A PLS-SEM approach. Paper presented at the AIP Conference Proceedings.

Khan, M., Lee, H. Y., and Bae, J. H. (2019). The Role of Transparency in Humanitarian Logistics. Sustainability, Vol. 11(7), pp. 2078-xxxx.

Knight, H., Megicks, P., Agarwal, S., and Leenders, M. (2019). Firm resources and the development of environmental sustainability among small and medium‐sized enterprises: Evidence from the Australian wine industry. Business Strategy and the Environment, Vol. 28(1), pp. 25-39.

Kopnina, H. (2018). Circular economy and Cradle to Cradle in educational practice. Journal of Integrative Environmental Sciences, Vol. 15(1), pp. 119-134.

Kot, S. (2018). Sustainable supply chain management in small and medium enterprises. Sustainability, 10(4), pp. 1143-xxxx.

Kuznetsova, I., Bulyga, R., Rakhmatullina, L., Titova, S., Shichiyakh, R., and Zakirov, R. (2019). Problems and prospects of human capital development in modern russia.

Laguir, I., Marais, M., El Baz, J., and Stekelorum, R. (2018). Reversing the business rationale for environmental commitment in banking: Does financial performance lead to higher environmental performance? Management Decision, Vol. 56(2), pp. 358-375.

Larsen, S. B., Masi, D., Feibert, D. C., and Jacobsen, P. (2018). How the reverse supply chain impacts the firm's financial performance: A manufacturer's perspective. International Journal of Physical Distribution & Logistics Management, Vol. 48(3), pp. 284-307.

Li, C., Murad, M., Shahzad, F., Khan, M. A. S., and Ashraf, S. F. (2020). Dark tetrad personality traits and counterproductive work behavior among doctors in Pakistan. The International Journal of Health Planning and Management, Vol. 35(5), pp. 1173-1192.

Li, C., Murad, M., Shahzad, F., Khan, M. A. S., Ashraf, S. F., and Dogbe, C. S. K. (2020). Entrepreneurial passion to entrepreneurial behavior: Role of entrepreneurial alertness, entrepreneurial self-efficacy and proactive personality. Frontiers in Psychology, Vol. 11, pp.1611.

Manello, A., and Calabrese, G. (2019). The influence of reputation on supplier selection: An empirical study of the European automotive industry. Journal of Purchasing and Supply Management, Vol. 25(1), pp. 69-77.

Mani, V., Agarwal, R., Gunasekaran, A., Papadopoulos, T., Dubey, R., and Childe, S. J. (2016). Social sustainability in the supply chain: Construct development and measurement validation. Ecological Indicators, Vol. 71, pp. 270-279.

Manninen, K., Koskela, S., Antikainen, R., Bocken, N., Dahlbo, H., and Aminoff, A. (2018). Do circular economy business models capture intended environmental value propositions? Journal of cleaner production, Vol. 171, pp. 413-422.

Mardan, E., and Kamranrad, R. (2020). A Multi-objective Closed Loop Supply Chain Design: A Case Study in Iran. International Journal of Supply and Operations Management, Vol. 7(2), pp. 119-128.

Martinez-Martinez, A., Cegarra-Navarro, J.-G., Garcia-Perez, A., and Wensley, A. (2019). Knowledge agents as drivers of environmental sustainability and business performance in the hospitality sector. Tourism Management, Vol. 70, pp. 381-389.

Maurel, M., and Trabado, C. (2018). Retrieving Value in Used Textile-A study of reverse logistics system of Jönköping Municipality.

Meherishi, L., Narayana, S. A., and Ranjani, K. (2019). Sustainable packaging for supply chain management in the circular economy: A review. Journal of cleaner production, Vol. 237, pp. 117582.

Milios, L., Beqiri, B., Whalen, K. A., and Jelonek, S. H. (2019). Sailing towards a circular economy: Conditions for increased reuse and remanufacturing in the Scandinavian maritime sector. Journal of cleaner production, Vol. 225, pp. 227-235.

Mont, O., Whalen, K., and Nussholz, J. (2019). Sustainable innovation in business models: Celebrated but not interrogated Handbook of Sustainable Innovation: Edward Elgar Publishing.

Morgan, T. R., Tokman, M., Richey, R. G., and Defee, C. (2018). Resource commitment and sustainability: a reverse logistics performance process model. International Journal of Physical Distribution & Logistics Management, Vol. 48(2), pp. 164-182.

Mushtaq, F., Shafiq, M., Savino, M. M., Khalid, T., Menanno, M., and Fahad, A. (2018). Reverse Logistics Route Selection Using AHP: A Case Study of Electronics Scrap from Pakistan. Paper presented at the IFIP International Conference on Advances in Production Management Systems.

Pires, A., Martinho, G., Rodrigues, S., and Gomes, M. I. (2019). Preparation for Reusing, Recycling, Recovering, and Landfilling: Waste Hierarchy Steps After Waste Collection Sustainable Solid Waste Collection and Management (pp. 45-59): Springer.

Priem, R. L., Wenzel, M., and Koch, J. (2018). Demand-side strategy and business models: Putting value creation for consumers center stage. Long Range Planning, Vol. 51(1), pp. 22-31.

Pundhir, S. K. S., Gupta, A. K., and Kumar, S. (2020). Determining Decision Variables for Manufacturer and Retailer in the Co-operative and Non-cooperative Environment: A Game Theory Approach. International Journal of Supply and Operations Management, Vol. 7(2), pp. 129-138.

Rana, N. P., Luthra, S., Mangla, S. K., Islam, R., Roderick, S., and Dwivedi, Y. K. (2019). Barriers to the development of smart cities in Indian context. Information Systems Frontiers, Vol.  21(3), pp. 503-525.

Sarkis, J., Zhu, Q., and Lai, K.-h. (2011). An organizational theoretic review of green supply chain management literature. International Journal of Production Economics, Vol. 130(1), pp. 1-15.

Shabbir, M. S., and Kassim, N. M. (2018). Supply Chain Management Drivers and Sustainability of Green Initiatives in Manufacturing Enterprises: A Case in Pakistan. International Journal of Entrepreneurship. Vol. 22(1S), pp. 1-19.

Shaharudin, M. R., Tan, K. C., Kannan, V., and Zailani, S. (2019). The mediating effects of product returns on the relationship between green capabilities and closed-loop supply chain adoption. Journal of cleaner production, Vol. 211, pp.  233-246.

Shaik, M. N., and Abdul-Kader, W. (2018). A hybrid multiple criteria decision making approach for measuring comprehensive performance of reverse logistics enterprises. Computers & Industrial Engineering, Vol. 123, pp. 9-25.

Sideridis, G., Saddaawi, A., and Al-Harbi, K. (2018). Internal Consistency Reliability in Measurement: Aggregate and Multilevel Approaches. Journal of Modern Applied Statistical Methods, Vol. 17(1), pp. 15.

Slomski, V., Slomski, V. G., Valim, G. G., and Vasconcelos, A. L. F. d. S. (2018). A disclosure of social and environmental results/economy resulting from the implementation of reverse logistics and final disposal of the post‐consumption product: The case of computer peripherals industry. Environmental Quality Management, Vol. 27(3), pp. 73-87.

Soleimani, F., Pirayesh, M., and Dehghanian, F. (2020). An Integrated Production-Inventory Model for a Dual-Channel Supply Chain. International Journal of Supply and Operations Management, Vol. 7(2), pp. 139-147.

Sorkun, M. F., & Onay, M. (2018). The Effects of Companies' Reverse Logistics Motivations on Their Reverse Logistics Networks Strategic Design and Innovative Thinking in Business Operations (pp. 3-21): Springer.

Sousa-Zomer, T. T., Magalhães, L., Zancul, E., Campos, L. M., and Cauchick-Miguel, P. A. (2018). Cleaner production as an antecedent for circular economy paradigm shift at the micro-level: evidence from a home appliance manufacturer. Journal of cleaner production, Vol. 185, pp. 740-748.

Sudarto, S., Takahashi, K., and Morikawa, K. (2017). Efficient flexible long-term capacity planning for optimal sustainability dimensions performance of reverse logistics social responsibility: A system dynamics approach. International Journal of Production Economics, Vol. 184, pp. 179-192.

Tausif, M., Jabbar, A., Naeem, M. S., Basit, A., Ahmad, F., and Cassidy, T. (2018). Cotton in the new millennium: advances, economics, perceptions and problems. Textile Progress, Vol. 50(1), pp. 1-66.

Thain, D. (2019). Survey of reverse logistics: a literature review.

Vahabzadeh, A. H., Asiaei, A., and Zailani, S. (2015). Green decision-making model in reverse logistics using FUZZY-VIKOR method. Resources, Conservation and Recycling, Vol. 103, pp. 125-138.

Vargas, J. R. C., Mantilla, C. E. M., and de Sousa Jabbour, A. B. L. (2018). Enablers of sustainable supply chain management and its effect on competitive advantage in the Colombian context. Resources, Conservation and Recycling, Vol.  139, pp. 237-250.

Waqas, M., Dong, Q.-l., Ahmad, N., Zhu, Y., and Nadeem, M. (2018). Critical Barriers to Implementation of Reverse Logistics in the Manufacturing Industry: A Case Study of a Developing Country. Sustainability, Vol. 10(11), pp. 4202.

Westland, J. C. (2019). An Introduction to Structural Equation Models Structural Equation Models (pp. 1-15): Springer.

Zamanian, M. R., Sadeh, E., Amini Sabegh, Z., and Ehtesham Rasi, R. (2020). A Multi-Objective Optimization Model for the Resilience and Sustainable Supply Chain: A Case Study. International Journal of Supply and Operations Management, Vol. 7(1), pp. 51-75.

Zhu, Q., Shah, P., and Sarkis, J. (2018). Addition by subtraction: Integrating product deletion with lean and sustainable supply chain management. International Journal of Production Economics, Vol. 205, pp. 201-214.