Antecedents of implementation success in closed-loop supply chain: an empirical investigation

Abstract

Implementation of closed-loop supply chain (CLSC) has gained increased consideration in the last few years owing to an increase in environmental concerns, product returns and scarcity of natural resources. It aids in improving environmental, economic and social performances. The purpose of this study is to examine the impact of CLSC critical success factors (CSFs) on performance outcomes. Firstly, CSFs and performance outcomes are extracted by conducting exploratory factor analysis using SPSS software. Then, the relationships between CLSC CSFs and performance outcomes are empirically tested by Partial Least Squares-Structural Equation Modelling (PLS-SEM) approach, using the data collected from 138 professionals working in remanufacturing, refurbishing and recycling operations in North American manufacturing organisations. Empirical analysis demonstrates that CSFs, ‘environmental concerns’, ‘sustainable production’ and ‘product design and collection’ have a significant positive effect on environmental performance. Results also validate the significant positive effect of CSFs, ‘demand and inventory management’ and ‘raw material prices’ on economic performance. In our knowledge, this is the first study that examines the impact of CLSC CSFs on performance outcomes. The results provide managers in manufacturing organisations with insights on most important CSFs that improve performance.