Drivers and obstacles of product recovery activities in the Greek industry

Abstract

PurposeThe purpose of this study is to assess the current state of affairs in the product recovery domain as perceived by Greek industry. The extent of involvement of original equipment manufacturers in product recovery activities (PRA), the direct profitability of PRA and the most important specific drivers and barriers to the implementation of PRA are the main issues that are explored. The paper also investigates whether these issues are affected by two factors: level of PRA and profitability of existing PRA.Design/methodology/approachA questionnaire‐based survey was conducted and 312 valid responses were received. Statistical analysis of the responses was carried out via non‐parametric χ2‐tests for homogeneity, Mann‐Whitney U‐tests and Friedman two‐way analysis of variance.FindingsThe results suggest that PRA are not very much developed by manufacturing companies in Greece. The companies engage in PRA mainly because they want to provide service to their customers; they are hesitant to embark on an unknown set of new activities, which complicate their manufacturing operations.Research limitations/implicationsA limitation of the study is the variability in the manufacturers' responses as the data comes from the entire Greek industry.Originality/valueThe paper responds to the repeated calls for more empirical research in reverse logistics. It is the first survey‐based study of PRA in an industry that is not as developed as the industry in the USA or Western Europe, where most similar empirical research is conducted.