Sustainability of reverse logistics as a source of firms' competitive advantage in South Africa

Abstract

Reverse logistics (RL) management has become synonymous with sustainable business practices. This study examines the key practices amongst small and medium enterprises (SMEs). Based on resource-based theory (RBT), it explores the major barriers, as well as the effect of RL practices on SMEs’ competitive advantage. The study applied a quantitative approach through questionnaires administered to 80 SMEs managers and owners in South Africa. It found that the adoption and implementation of waste management, remanufacturing and repackaging practices has a strongly positive and highly significant influence on SMEs’ competitive advantage. Also, it identified waste management (recycle, reuse and landfill), remanufacturing and repackaging as the three broad RL practices among SMEs. The findings reveal that cost of adopting RL practices and lack of awareness of available resources and supports as the major barriers.