The Impact Of Institutional Pressures Top Managers Posture And Reverse Logistics Onperformance

Topics: Supply chain management, Supply chain, Logistics Pages: 12 (10839 words) Published: April 10, 2015
Int. J. Production Economics 143 (2013) 132–143

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Int. J. Production Economics
journal homepage: www.elsevier.com/locate/ijpe

The impact of institutional pressures, top managers’ posture and reverse logistics on performance—Evidence from China
Fei Ye a, Xiande Zhao a,b, Carol Prahinski c, Yina Li a,n
a

School of Business Administration, South China University of Technology, Guang Zhou, 510640, China Department of Economics and Decision Sciences, China-Europe International Business School (CEIBS), 699 Hong Feng Road, Pudong, Shanghai, China c

Eli Broad College of Business, Michigan State University, East Lansing, MI 48824, USA b

a r t i c l e i n f o

a b s t r a c t

Article history:
Received 5 June 2012
Accepted 19 December 2012
Available online 3 January 2013

Based on institutional theory, this study investigates the effects of three institutional pressures on top managers’ posture towards reverse logistics implementation: government, customer, and competitor pressures. Survey data from 209 manufacturers of Pearl River Delta (PRD) in China reveal that institutional pressures have a statistically significant positive influence on top managers’ posture towards reverse logistics implementation. In addition, while top managers’ posture is strongly related to product recovery, it is not related to product return. We also find that product recovery has a significant positive effect on a firm’s economic and environmental performance. Conversely, the results suggest that product return negatively affects a firm’s economic performance and has no effect on environmental performance. We highlight the managerial implications. & 2013 Elsevier B.V. All rights reserved.

Keywords:
Environment
Reverse logistics
Institutional pressures
Top managers’ posture
Performance

1. Introduction
The remarkable progress in industrialization and economic
development in the last two hundred years has accelerated the global interchange of people, goods, and information to such an extent that the natural environmental has been placed under a tremendous burden, exceeding its capacity for self-recovery. In recent years, the global warming issue has received a great deal of attention from both public and private organizations. The 2009 Copenhagen Climate Change Summit highlights the importance of energy-saving, emissions reduction, and low-carbon economy in global economic development. More than ever, consumers, business enterprises, and governments are paying increasing attention to sustainable development. Under this situation, reverse logistics, which refers to the series of activities necessary to retrieve a returned, used or damaged product from the point of consumption to either dispose of it or recover economic and/or environmental value (Thierry et al., 1995; Rogers and Tibben-Lembke, 1999; Guide and Van Wassenhove,

2002; Prahinski and Kocabasoglu, 2006) has been viewed as an effective way to improve resource productivity, reduce the negative impact to environment, and improve both business performance and environmental performance enabling firms to achieve competitive advantage (Marien, 1998; Meyer, 1999; Stock et al., 2002; El korchi and Millet, 2011). The advantages of reverse logistics are

n

Corresponding author. Tel.: þ86 20 87112682; fax: þ86 20 22236282. E-mail address: bmliyina@scut.edu.cn (Y. Li).

0925-5273/$ - see front matter & 2013 Elsevier B.V. All rights reserved. http://dx.doi.org/10.1016/j.ijpe.2012.12.021

twofold. First, firms are able to reduce their material and energy resource consumptions and thus reduce operating costs. Second, firms are able to generate revenue from returned, reconditioned or recycled products and materials that were previously discarded (Stock et al., 2002). A closed-loop supply chain with an effective reverse logistics network can help to solve the growing concern regarding environmental problems (Liste and Dekker,...

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