Developing a Framework for Closed-Loop Supply Chain and Its Impact on Sustainability in the Petrochemicals Industry

Lubna El-Sheikh,Rebeka Kovačič Lukman

doi:10.3390/su14063265

Abstract

Companies rely on formulating, implementing, and monitoring strategies in social, environmental and economic aspects to ensure that they achieve their goals and keep abreast of developments related to sustainability requirements. Therefore, our study develops a system to integrate the closed-loop supply chain approach in the petrochemical sector. The research follows the quantitative-based approach by collecting data through a questionnaire directed to employees in the supply chain departments, including 230 questionnaires that were collected. Correlation and structural equation models (SEM) were used. This technique consists of multiple regression analysis and factor analysis and analyses the structural relationship between the underlying structures and the measured variables. The results indicated a significant relationship between the supply chains that have a loop from the following perspectives: economic motivations, customer awareness, environmental legislation, and sustainability. By increasing financial reasons, customer awareness and environmental legislation, sustainability will increase as they all move in the same direction. Therefore, the overall effect of a closed-loop supply chain is positive and significant.

Highlights

Sustainability and its practice have attracted the attention of the world, receiving a great degree of importance and recognition since 1992, which coincides with the Rio de Janeiro Summit
To achieve and adapt objectives related to sustainability requirements, companies usually rely on methods for formulating, implementing and monitoring their systems in terms of environmental, social and economic aspects [1]
When testing the research hypothesis for the relationship between the closed-loop supply chain and sustainability, the findings showed support for the first sub-hypothesis, which states, “There is a significant impact of environmental legislation on sustainability”

Summary

Introduction

Sustainability and its practice have attracted the attention of the world (companies and researchers), receiving a great degree of importance and recognition since 1992, which coincides with the Rio de Janeiro Summit. It has slowly, but without hesitation, led to changes in global economies. But without hesitation, led to changes in global economies It includes several aspects, such as economic, social, environmental and political, at the macro-level and at the micro-level. This issue is pushing companies to incorporate sustainability into their strategies. Several approaches or definitions have been proposed

Methods

Discussion

Conclusion