Reverse logistics, organizational culture and firm operational performance: Some empirical evidence

Abstract

AbstractAs the supply chain environment is increasingly becoming uncertain and globally competitive, reverse logistics (RL) practices, which constitute a substantial component of Green Supply Chain Management (GSCM), have been widely recognized as crucial in achieving sustainable competitive advantage. While past studies have proven the positive relationship between properly implemented RL and firm's environmental efficiency and overall competitiveness, developing, maintaining, and integrating RL into the organization's supply chain operations come at a cost and institutional commitment. This study seeks to provide evidence on how RL and organizational culture (OC) provide benefits specifically to the operational performance (OP) of an organization. The study addresses this, first, by an empirical examination of the direct effects of RL practices on firm OP and, then, by further examining whether RL practices' influence on OP is strengthened by OC. The study uses dataset gathered from 213 firms across the service and manufacturing sectors in the Ghanaian economy using a structured questionnaire. The study adopts confirmatory factor analysis (CFA) in addition to partial least square structural equation modelling (PLS‐SEM) in analysing the study's measurement model and in estimating the resultant structural model. The study concludes that implementing RL practices positively influences the OP of the firm, while OC strengthens such influence. This study expands the RL literature by obtaining the results for the conceptual model and dealing with the implication from a developing economy's perspective, hence supplementing the growing body of knowledge.