Factors influencing implementation of reverse logistics: a survey among Hong Kong businesses

Abstract

PurposeThe purpose of the paper is to examine the major factors that may influence industries to implement reverse logistics. Thus, the practice of reverse logistics can be promoted by suggestions provided for businesses to eliminate the identified barriers.Design/methodology/approachIn this paper, a questionnaire is developed and the survey is conducted among Hong Kong businesses to collect data on the perception of companies on reverse logistics implementation. Nine hypotheses are set to investigate its influence on company background information, recognition, and perception on reverse logistics, as well as the internal and external factors. Statistical analysis is carried out to test the data collected. Managerial implications are presented to encourage industries to implement reverse logistics.FindingsThe result of the statistical analysis shows that internal and external factors significantly influence reverse logistics. Financial and human resources play an important role in companies' implementation of reverse logistics, whereas tangible resources do not have much influence on the practice. Companies with good cooperation and relationship with other business partners can implement reverse logistics.Practical implicationsThere has been increasing concern on environmentally friendly activities worldwide to protect the environment. Therefore, the concept of reverse logistics should be focused on for the return of goods for remanufacturing.Originality/valuePrevious studies have been conducted to explore the barriers that may hinder industries from implementing reverse logistics in specific industries. Only a few studies have been conducted to investigate the internal and external measures that influence its implementation.