Sustainable Supply Chain Initiative and Reverse Logistic

Abstract

Global outsourcing shifts manufacturing jobs to emerging countries, which provides new opportunities for improving their economic development. The authors develop and test a theoretical model to predict first, how sustainable supply chain initiatives might influence reverse logistics outcomes and second, the impact of eco-reputation and eco-innovation orientation strategies on the deployment of sustainable supply chain initiatives. The paper aims to discuss these issues. The proposed new model of antecedents and outcomes of sustainable supply chain initiatives underwent a rigorous empirical test through structural equation modeling with samples from an emerging market. Design/methodology/approach: The proposed new model of antecedents and outcomes of sustainable supply chain initiatives underwent a rigorous empirical test through structural equation modeling with samples from an emerging market. Findings: The results show that firms that implement sustainable supply chain initiatives can realize positive reverse logistics outcomes; the study also provides new insights into eco-innovation and eco-reputation strategic orientations as theoretically important antecedents of sustainable supply chain initiatives. Research limitations/implications: Though the authors identify three components of sustainable supply chain initiatives, other components could exist, and ongoing research should investigate them. Practical implications: The findings have important implications for managers in emerging markets seeking to initiate ecologically friendly business practices. The authors offer strong evidence of the benefits obtained from reverse logistics in sustainable supply chain initiatives. Policy makers and firms attempting to nurture sustainable supply chain initiatives should not overlook the important role of eco-reputation and eco-innovation strategic orientations, which the results identify as important enablers. Originality/value: This study offers evidence of the critical role of eco-reputation and eco-innovation strategic orientations in deploying sustainable supply chain initiative programs, as well as of their mutual effects. This study also offers empirical evidence that implementing sustainable supply chain initiatives leads to reverse logistics, creating value, and a new source of competitive advantages.