Abstract
The purpose of this paper is to examine the effect of returned product disposition strategies on organizational performance by collecting and analysing data from the household appliance industry in Egypt. In addition, this paper also tests the effect of resource allocation as a moderator variable for the relations between disposition strategies and organizational performance. The proposed research model describes the impact of returned product disposition strategies on organizational performance and the effect of resource allocation as a moderator variable for the relations between disposition strategies and organizational performance. The proposed research model and hypotheses were tested using correlation analyses, regression analyses and structural equation modelling based on data collected from 108 companies in the Egyptian household appliance industry. According to the results of the study, disposition strategies are positively associated with organizational performance. Moreover, resource allocation moderates the relation between disposition strategies and organizational performance. The data used in this study were collected from 108 companies in the Egyptian household appliance industry. However, the generalization of the study results may be limited by the size of the sample. This study provides a useful working model in the household appliance industry. The results suggest that using disposal and repair strategies will contribute to improving organizational performance, and appropriate resource allocation will moderate the relation between disposition strategies and organizational performance.
Highlights
The aim of this research is to investigate different activities related to reverse logistics and its role in creating competitive advantages and improving the company’s performance
One of the main activities related to reverse logistics is the disposition of the returned product without polluting the environment as well as reducing the cost of disposition
The current study focuses on handling returned products as one of the operations of reverse logistics
Summary
The aim of this research is to investigate different activities related to reverse logistics and its role in creating competitive advantages and improving the company’s performance. In today’s business world, the concern is reducing costs to gain more profit, but there is a shift toward achieving sustainability by achieving the concept of triple bottom line, which demonstrates the need to achieve a balance between social responsibility, environmental preservation and economic prosperity to achieve sustainability (Correa & Xavier, 2013) This increase in scholar and practitioner focus reinforces the emergence of returns management as a key strategic capability for any organization within the supply chain. The study identifies the effect of allocating resources to reverse logistics activities by the company on the hypothetical relation between the disposition strategies of returned products and organizational performance. The fifth section discusses data analysis and results, whereas the discussion and conclusion are presented in the last section
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