Reverse logistics capabilities and firm performance: the mediating role of business strategy

Abstract

ABSTRACTThis study aims to examine the impact of reverse logistics capabilities on firm performance and mediating role of logistics strategies. We reviewed three theories of reverse logistics capabilities: (a) resource-based view of the firm, (b) transaction cost economics, and (c) institutional theory. We examined six reverse logistics capabilities: logistics information management, close-loop capability, supply chain integration, supply chain coordination, conformity capability, and institutional incentives. We examined three reverse logistics strategies: joint reverse logistics, manufacturer reverse logistics, and third-party reverse logistics. We conducted a survey of Chinese mobile phone companies out of which we received 125 usable questionnaires with a response rate of 80%. The results of mediated hierarchical regression support the hypothesis that reverse logistics capabilities influence firm performance. Institutional factors were more significant than supply chain factors. Close-loop capability was the most significant factor. We provide managerial implications and suggestions for future research.