Circular economy-based reverse logistics: dynamic interplay between drivers, barriers and firm performance

ABSENT fiat, the form of organization that survives in an activity is the one that delivers the product demanded by customers at the lowest price while covering costs.1 Our goal is to explain the survival of organizations characterized by separation of "ownership" and "control"-a problem that has bothered students of corporations from Adam Smith to Berle and Means and Jensen and Meckling.2 In more precise language, we are concerned with the survival of organizations in which important decision agents do not bear a substantial share of the wealth effects of their decisions. We argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. We contend that separation of decision and risk-bearing functions survives in these organizations in part because of the benefits of specialization of

Purpose The research aims to investigate the mediating role of firm performance (FP) in improving green innovation on firm sustainability performance, using evidence from an emerging country. Indonesia is a member of the Paris Agreement and one of the largest contributors to global gas emissions; hence, sustainability is a significant issue. Design/methodology/approach This study is based on a simple mediation model 4 by Hayes Process Macro regression-based approach using R. This study employs non-banking and finance sector data of 518 companies listed on the Indonesia Stock Exchange from 2017 to 2021. Findings The research found that green innovation significantly and positively impacts FP, as demonstrated by a mediation test with a 95% bootstrapping confidence interval based on 5,000 bootstrapping samples. The relationship between FP and firm sustainability performance is also positive and significant. However, the effect of green innovation on firm sustainability performance is insignificant. Therefore, our main finding revealed that FP plays an important and positive role in mediating the effect of green innovation practices on sustainability performance, which is known as full mediation. Research limitations/implications This study is limited to using only a single Indonesian as a representative of emerging countries. Further research could potentially apply to multiple countries or provide a comparative study across countries, thereby accelerating emerging countries’ commitments to the sustainability agenda. Other factors might apply to sustainability-related studies. Practical implications This study provides valuable insights to the government, enabling them to implement incentives, policies or campaigns aimed at promoting the use of online media to enhance industry disclosure on sustainability and green innovation practices worldwide. Additionally, it highlights that financial practices are not limited to publicly listed companies but extend to non-public listed companies. Social implications This research aims to raise industry awareness of firms’ sustainability practices, enhancing their reputation. Originality/value This study addresses a gap in the literature by exploring the mediation role of FP in the effect of green innovation practices on firm sustainability performance from the perspective of media agenda setting theory.

Sustainability in business is becoming a concept that no serious organization can overlook, especially in supply chain operations. A lot of interest has been built on the concept of sustainability in the recent past because of the mounting pressure from the market, government and international non-governmental bodies especially on sustainable development and environmental protection. To achieve sustainability in the supply chain, organizations currently adopt green supply chain management (GSCM) practices. Reverse logistics is one of the commonly practiced GSCM practice. This study intended to examine the effect of reverse logistics on operational performance of sisal processing firms in Nakuru County. The research adopted correlational research design and was a cross sectional survey. It was guided by two objectives; to establish the effect of product recovery on operational performance of sisal processing firms in Nakuru County and to determine the effect of product reuse on operational performance of sisal processing firms in Nakuru County. The target population for the study was employees working in all sisal processing firms in Nakuru County. Purposive sampling was used to select employees in production, procurement, accounting and finance and marketing departments while stratifies random sampling was used to determine the sample for the study. Data will be collected through a structured questionnaire with 5 points likert scale and analyzed through SPSS version 21. Descriptive statistics was used to describe the aspects of reverse logistics and operational performance. Regression analysis was used to determine the effect of reverse logistics on operational performance. The results were presented using tables accompanied with explanations. The study revealed that product recovery and product reuse both have positive effect on operational performance of sisal processing firms. The researcher recommended that management of processing firms should look at reverse logistics as a strategy to achieve competitive advantage and manage it strategically just like other key management areas. The researcher recommended that study should be conducted on the key determinants and drivers of reverse logistics. Further study should be conducted on the relationship between reverse logistics and social performance of processing/manufacturing organizations. Lastly, further study should be conducted on the role of top management in adoption of reverse logistics practices.

Exploring the sustainability performances of firms using environmental, social, and governance scores

ABSTRACTThis study aims to examine the impact of reverse logistics capabilities on firm performance and mediating role of logistics strategies. We reviewed three theories of reverse logistics capabilities: (a) resource-based view of the firm, (b) transaction cost economics, and (c) institutional theory. We examined six reverse logistics capabilities: logistics information management, close-loop capability, supply chain integration, supply chain coordination, conformity capability, and institutional incentives. We examined three reverse logistics strategies: joint reverse logistics, manufacturer reverse logistics, and third-party reverse logistics. We conducted a survey of Chinese mobile phone companies out of which we received 125 usable questionnaires with a response rate of 80%. The results of mediated hierarchical regression support the hypothesis that reverse logistics capabilities influence firm performance. Institutional factors were more significant than supply chain factors. Close-loop capability was the most significant factor. We provide managerial implications and suggestions for future research.

PURPOSE: Businesses are regarded as the main agents that can help achieve sustainable development. Therefore, more and more firms of various characteristics integrate sustainability issues into their business strategies. There is ongoing debate on the relationship between sustainability engagement and firm performance, with ambiguous results. Our study falls into this stream of research by adding the perspective of the Central European economy. The main objective of our paper is to examine the relationship between firm sustainability performance and its financial performance in the context of various corporate governance characteristics (in particular board attributes and ownership structure). METHODOLOGY: Our research sample covers firms listed on the Warsaw Stock Exchange representing various indexes (related to their size) and sectors in 2015–2021. We measure sustainability performance with our original aggregated index created by integrating key firm ESG engagement characteristics. Financial performance is analyzed from two different perspectives – accounting perspective illustrated by profitability of assets (ROA) and market perspective - illustrated by market value (MV/BV ratio). To achieve the research aims, several statistical methods were employed in the study, including selected descriptive statistics and panel regression models. FINDINGS: Our results confirm a significant positive relationship between sustainability and financial performance, as measured by ROA and MV/BV ratios. Additionally, we observe a significant positive relationship between gender diversity on the management board (the presence of women on the management board) and accounting performance. Our results provide an argument for firm engagement in sustainability initiatives, as it may improve its profitability and market value. IMPLICATIONS for theory and practice: Our study not only contributes to the corporate finance and sustainability literature by providing evidence on the relationship between sustainability performance and financial performance in the context of the Central European economy, but also provides insights for corporate governance research in terms of boards attributes and different types of ownership structures. The policy suggestions derived from our findings can benefit both managers and regulators, focusing on the sustainable development paradigm and ultimately enhancing overall stakeholder well-being. ORIGINALITY AND VALUE: The originality of our research stems from investigating the relationship between sustainability performance and firm performance from both an accounting and a market perspective and using the original sustainability index developed for the purpose of the study. Additionally, we address potential gaps in existing research by incorporating several corporate governance characteristics to clarify their importance for a firm performance.

PurposeThe main purpose of the study is to analyze the impact of research and development (R&D) expenditure on firm performance and firm value in an emerging economy.Design/methodology/approachIn this study, firm performance is examined by firm financial performance (return on asset (ROA) and return on equity (ROE)) and market performance (Tobin's Q (TBQ)). This study conducted a multivariate analysis on the sampled data using pooled ordinary least square (OLS) regression method. In addition, both the level and lagged models have been used to test hypothesis in order to get the results.FindingsAll the empirical results from different models found significant and positive association of R&D expenditure with firm performance and firm value. The study also validates that all results are robust and free from outliers and multicollinearity issues.Research limitations/implicationsMost of the studies regarding the R&D expenditure and its impact were conducted on developed countries addressing only firm performance. Whereby, this study examined the impact of R&D expenditure on both firm's financial performance and market performance as well as firm value in the context of an emerging economy.Practical implicationsThe outcomes of the study will enable the entrepreneurs, managers, investors and policymakers with more confidence to invest in R&D expenditure that will also ensure the organizational sustainability in the long run.Originality/valueMost of the prior studies regarding the R&D expenditure and its impact were conducted on developed countries addressing only firm performance. Herein, both firm's financial performance and market performance along with firm value have been analyzed in the context of an emerging economy. This paper is unique empirical research study due to different institutional and regulatory setting as well as corporate characteristics. This study strongly advocates the organizational learning theory, agency theory and resource-based view theory of firms' allocation of funds for future growth and innovation.

The growing emphasis on sustainability in Supply Chain Management (SCM) has highlighted reverse logistics (RL) as a critical strategy for achieving both environmental and economic objectives. However, existing studies often overlook the moderating role of Data-Driven Decision-Making (DDDM) in enhancing the relationship between RL and firm performance. This study addresses this gap by proposing a conceptual framework that integrates RL, sustainability, profitability, and DDDM to optimize reverse logistics operations and bolster firm performance. Drawing on a synthesis of existing literature, the study identifies key challenges in RL, including inefficiencies in recovery and recycling processes, and proposes data-centric strategies to address these issues. The conceptual framework illustrates how leveraging DDDM enables firms to analyze large datasets, streamline RL processes, and ensure alignment with sustainability goals. By integrating data-driven insights, organizations can improve operational agility, reduce costs, and achieve compliance with environmental regulations, ultimately enhancing profitability and competitive positioning. The methodology focuses on developing a theoretically grounded framework that lays the foundation for future empirical validation. Key results suggest that firms employing DDDM in RL processes can significantly reduce waste, lower carbon footprints, and create value through efficient resource use. This research provides actionable insights for managers and policymakers, advocating for the integration of DDDM to transform RL into a strategic driver of sustainability and profitability. This article holds significant importance for the scientific community as it addresses the critical intersection of reverse logistics, sustainability, and profitability, a growing area of interest in both academia and industry. By integrating the role of data-driven decision-making, the study provides a novel conceptual framework that can enhance operational efficiency and promote sustainable business practices. This study not only contributes to the theoretical advancement of reverse logistics and sustainability but also offers practical insights for organizations striving to balance economic and environmental objectives. Furthermore, it highlights the transformative potential of data analytics in driving sustainable supply chain strategies, making it a valuable resource for researchers and practitioners alike.

Corporate governance affects the ownership and control of a firm. Conflicts between agents, managers and shareholders caused the crises of WorldCom, Enron, Tyco and Lehman Brothers. Therefore, the impact of chief executive officer (CEO) duality or board size on sustainable innovation and performance of small and medium-sized enterprises (SMEs) is relevant for research and evaluation. This may reflect the CEO style that supports long-term business growth with limited resources to enhance accountability, fast decision-making, and minimise hindrances to governance, particularly in emerging markets like India. The finding will help SMEs in maintaining their long-term viability. The current study examines the impact of CEO duality, board size, and informal social networks on sustainable innovation, governance, and performance of Indian SMEs to enable management to assess the significance of factors that contribute to firms’ sustainable performance

Considering reverse logistics’ benefit for sustainability, it has gained significant attention as a strategic decision. Additionally, a geometric expansion occurs in reverse logistics and sustainability performance. Despite this, little has been written about this evolution retrospectively. Therefore, this study aims to conceptualise and perform a systematic scientometric review of reverse logistics and sustainability performance to identify research hotspots and emerging trends and offer suggestions for future research agendas by reviewing, retrieving, and analysing 848 papers from the Scopus databases. Based on the analysis, there was a rapid rise in the number of publications within this domain, while, at the same time, increasing interdisciplinary subject research has appeared. Furthermore, scholars and institutions from China, India, and the USA were the most prolific in this research domain. Mainly, the current study underscored some pivotal research hotspots, such as assessing the reverse logistics effect on different sustainability performance dimensions and developing a reverse logistics and sustainability performance network. Moreover, emerging trends include game theory, artificial intelligence, Industry 4.0, the manufacturing industry of developing countries, and the circular economy. Finally, a moderator was also sought to be proposed to optimise the relationship between reverse logistics and sustainability performance due to the inconsistent link between them. Having a comprehensive overview of reverse logistics and sustainability performance over the last 24 years may help practitioners and researchers better understand global trends and directions in this field.

Purpose: This study aimed to determine the relationship between Reverse Logistics and the performance of food and beverage manufacturing firms in Kenya. Methodology: An explanatory research design was employed in the study. All 172 of Kenya’s registered food and manufacturing businesses were considered using the census approach. Using questionnaires, primary data was gathered. This study employed 172 questionnaires. Version 25 of the SPSS statistical program was used to analyze the data. Findings: The study found that there is a correlation of 0.705 between Reverse Logistics and the performance of Kenyan food and beverage manufacturing companies. Reverse Logistics accounted for 49.4% of the variation in the performance of food and beverage manufacturing firms in Kenya. A unique contribution to theory, practice, and policy: The Stakeholders theory was validated. The study noted that the use of packaging that is returnable may save costs for the firms and improve efficiency. Reverse logistics can help a company identify ways to reuse, resell or recycle materials that would otherwise end up in a landfill. Implementing reverse logistics not only helps in profit margins but also helps improve the company’s brand reputation.

Purpose: The purpose of this study was to determine the relationship between reverse logistics and the performance of plastic bottling firms in Mombasa County, Kenya. Methodology: Cross-sectional research design was employed in the study. The study considered all 27 plastic bottling firms registered by Mombasa County Department of Trade. Stratified random sampling techniques was used to select sample size and Slovin’s formula was adopted to get the sample size for the study. Primary data was collected by use of structured questionnaires. Collected data was analyzed by employing descriptive and inferential statistics as the data analysis techniques. Descriptive statistics gives the profile of the respondents, that is, the frequencies and their percentages; whereas inferential statistics adopts a hierarchical, moderated, multiple regression analysis model in order to determine the effect of the explanatory variable. Statistical Package for Social Science was used as the data analysis tool. Data was presented in frequency and descriptive tables. Findings: The study established that there is a correlation of 0.748 between reverse logistics and performance of plastic bottling firms in Mombasa County. Reverse logistics accounted for 56.0% of the variation in the performance of plastic bottling firms in Mombasa County. Unique Contribution to Theory, Practice and Policy: Systems theory was adopted and validated. By incorporating linking the entire supply chain, Systems theory could assist plastic bottling firms in developing a seamless sustainable reverse logistics. The study revealed that successfully implementing reverse logistics; minimize unnecessary costs, protect the environment and increase firm returns.

Drawn upon upper echelon theory and organizational theory, this research proposes to examine the impact of CEO turnover in IT firms on firm performance in terms of both sustainable accounting performance and market performance. We find that CEO turnover is a significant determinant of firm performance, especially in IT firms. This paper contributes to the IS literature by investigating the CEO turnover impact in IT firms compared to other industries. This study also has practical implications by providing the guideline for IT firms on the CEO turnover policy. Such firms should place additional emphasis on their succession planning efforts. Keywords: Information technology, CEO turnover, Firm performance, IT business value INTRODUCTION Upper Echelon theory has identified the role of senior executives such as the CEO to be pivotal in the successful operation of organizations, and indicated that senior management teams are significant determinants of firm performance. Executives' managerial knowledge, skills, experiences, values, and personalities greatly impact their interpretations of the situations and facilitate formulation of appropriate strategic alternatives (Carpenter, 2004; Hambrick & Mason, 1984). Hannan and Freeman (1984) found evidence that the organizational change, including leadership turnover, is disruptive rather than adaptive. The introduction of new senior executives including the CEO is more likely to disrupt organizational routines and relationships, which result in decreasing in firm performance (Boyne et al., 2011; Hannan & Freeman, 1984). The relationship between executive turnover and firm performance remains one of the most interesting problems for organizations. Prior research has extensively examined the relationship (Adams & Mansi, 2009; Boyne et al., 2011; Hamori & Koyuncu, 2015; He et al., 2011; Huson et al., 2004; Lin et al., 2008; Shen & Cannella, 2002). Results have had mixed findings. Some suggested a positive relationship; some claimed a negative relationship; while others found that there is no association between CEO turnover and firm performance. Furthermore, little research has been done on the impact of CEO turnover on firm performance on distinctive industries or areas. For example, He et al. (2011) examined the impact in the property-liability insurance industry, and found that such firms with a CEO turnover experience more favorable performance changes. Kacmar et al. (2006) studied the impact in fast food, and found that CEO turnover is related to a reduction in firm performance. Likewise, the effect of CEO turnover in IT specific firms on firm performance remains under-researched. IT firms play an important role in today's environment. They are focused on technological activities and have developed innovative products, services, and processes. IT firms have specific characteristics that make them distinct from non-IT firms, for example, the fast pace of technological change and their low cost of entry (Banker et al., 2009). As such, the CEO is an important character for these organizations. Their responsibilities include making timely strategic decisions in response to both changes in technology as well as changes in the market. Therefore we believe that these firms are more likely to experience negative impacts when there is CEO turnover, motivating our desire to study the impact of CEO turnover in IT firms. The research of the impact of CEO turnover in IT firms on firm performance is limited. To fill this research gap and gain a deeper understanding of CEO turnover impact on firm performance, especially in IT firms, we intend to address the following research question: how is CEO turnover in IT firms related to firm performance. To answer this question, we draw upon the prior literature that examines the relationship between CEO turnover and firm performance to develop our research model. …

Purpose This study aims to review the influences of green purchasing (GP), green manufacturing (GM) and green packaging (GK) on sustainability performance (SP) with a focus on the mediating role of reverse logistics (RL). At the same time, this study is expected to examine the effect of GP, GM and GK on RL. Design/methodology/approach Quantitative analysis was conducted using data from 418 manufacturing enterprises in the Hebei province of China. Data analyses were conducted using the Smart-PLS 4.0 software and SPSS software. Findings This findings reveals that GM, GK and RL have a positive relationship with SP. However, GP were found not to significantly influence SP. Also, GP, GM and GK is positively related to RL. Also, RL influences the successful implementation of GK, GM and GP which results in building better SP. Practical implications This study offers practical evidence supporting the notion that GP, GM and GK can complement and enhance the effectiveness of RL. Also, for firms engaging in GP, GM and GK, RL is a crucial success factor for improved SP. Social implications This paper discusses benefits or outcomes of GP, GM and GK. As well as how GP, GM and GP can improve SP with a focus on the mediating role of RL. Originality/value Through the consideration of green environmental concerns, this study contributes to the existing literature on green practices and SP. Furthermore, by examining the mediating effect of RL strategies, this study offers a unique theoretical explanation for these relationships.

Purpose: This study aims to examine the significant impact of the global trade war on the manufacturing industry, particularly focusing on the shift of supply chains to Southeast Asia and the growing importance of green supply chains. Design/Methodology/Approach: The study utilises empirical data from Vietnam’s manufacturing industry to analyse the effects of green innovation, environmental management readiness, and green buying behaviour on corporate sustainability performance. The research methodically explores the direct impact of green innovation on sustainability performance and green purchasing, the mediating role of green buying behaviour, and the moderating effect of environmental management readiness on sustainability outcomes. Findings: The findings indicate that green innovation positively impacts corporate sustainability and green purchasing. Green buying behaviour significantly enhances sustainability and mediates between innovation and performance, while excessive environmental management readiness may hinder sustainability efforts by negatively moderating this relationship. Originality/Value: This study underscores the importance of adopting green innovation as a core strategy for achieving sustainable development and enhancing market competitiveness, particularly in the context of the ongoing global trade war. The research provides valuable insights for manufacturing firms, especially those in Southeast Asia, by highlighting the need to balance innovation with management readiness to effectively develop green supply chains. Keywords: Green Supply Chain Management; Buying Behaviour; Corporate Sustainability; Green Innovation. Citation: Chang, C.-T. and Wang, K.-J. (2025): The Impact of Green Innovation and Management on the Sustainability Performance of the Manufacturing Industry in Vietnam in Southeast Asia. World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 21, No. 2, pp. 97-113.