Remanufacturing and its impact on dynamic capabilities, stakeholder engagement, eco-innovation and business performance

Abstract

The adoption of eco-innovation by firms is influenced by internal and external factors, such as their resources and capabilities, and external factors, such as regulations. In this study is analyzed how resources and capabilities in remanufacturing enable a firm to integrate, create and reconfigure resources for sustainability in their dynamic business environment. A conceptual model, empirically validated through a survey, applied SmartPLS apps, the primary software used in partial least squares structural equation modeling (PLS-SEM). The results show there are positive and statistically significant relationships between Eco-Innovation and Dynamic Remanufacturing Capacity and between Eco-Innovation and Business Performance. However, the relationship between Eco-innovation and Stakeholder Engagement was not statistically supported. This shows that investments in Remanufacturing Prerequisites directly and positively affect Dynamic Remanufacturing Capabilities. The results show that there are positive and statistically significant impacts between EcoDim and DCRem (β = 0.304; p-value = 0.001) hypothesis (H1) and between EcoDim and BP (β = 0.358; p-value = 0.001) hypothesis (H2). Rem-Pre directly and positively affects DCRem (β = 0.490; p-value < 0.001) hypothesis (H3). However, the relationship between DCRem and BP (β = 0.200; p-value = 0.076) hypothesis (H4) is not statistically supported. Finally, this article is useful for academics and professionals alike, recognizing that more research effort is needed to extensively examine the factors driving consumer perceptions of remanufacturing acceptance and return behaviors, starting with a clear understanding of what consumers really want and what drives demand for remanufactured products. As a practical contribution to this study, it is expected that managers understand the importance of the dyad buyer-supplier relationship to the company's Eco-innovation practices to ensure competitive strategies for incorporating environmental values into reverse logistics performance. More specifically, to avoid wasting resources, they must perceive the importance of managing the resources and capabilities of reverse logistics to reduce the vulnerability, uncertainty and complexity of environmental dynamism in the relationships of its actors. Furthermore, the coordinated development of dynamic remanufacturing capabilities is suggested, presenting the conceptual evaluation model to support future research on this topic.