Green Supply Chain Management: The Effect of Procurement Sustainability on Reverse Logistics

Abstract

Background: Sustainable procurement is about considering social and environmental factors alongside financial factors in making procurement decisions and purchasing goods and services that take into account the social, economic, and environmental impact that such purchasing has on people and communities. This study was carried out to address the effects of procurement sustainability on reverse logistics. It considered four objectives: to establish the relationship between environmental procurement sustainability and reverse logistics, to examine the relationship between economic procurement sustainability and reverse logistics, to examine the relationship between social sustainability procurement and reverse logistics, and to examine the moderating role of government policy. Methods: This study applied structural equation modeling to check the research hypotheses. A purposive sampling technique was used. A structured questionnaire was used to gather primary data. The data gathered were analyzed using descriptive and inferential analysis. The data were analyzed in SPSS version 21. The study found that environmental, economic, and social procurement sustainability has a significant and positive effect on reverse logistics. Government policy moderates the relationships between environmental, economic, and social procurement sustainability and reverse logistics. Conclusions: This study recommends that organizations team up with environmental protection agencies to produce environmentally friendly products. Social interventions that can help protect society from damage should be acknowledged. Good economic policies that ensure that organizations increase their wealth should also be acknowledged.