The impact of supply chain integration on reverse supply chain adoption

Abstract

PurposeThe aim of this study is to investigate the impact of integration capabilities on reverse supply chain (RSC) adoption and, consequently, RSCs' effectiveness. Thus, supply chain (SC) integration capabilities and their types in relation to internal, supplier and customer integration capabilities are investigated.Design/methodology/approachIn this paper a quantitative survey was conducted with Malaysian manufacturers with a certified the International Organization for Standardization (ISO) 14001 environmental management system. The entire population was utilized through census sampling; 150 useable survey responses were received. The partial least squares technique was used for the data analysis.FindingsThe results indicate that internal integration improves external integration. In addition, supplier and customer integration have a positive direct effect on the adoption of RSC activities. Though internal integration has no significant direct effect on the adoption of RSC activities, it has an indirect impact through both supplier integrative capabilities and customer integrative capabilities.Practical implicationsThe findings of this study suggest that the managers of manufacturers whose internal integrative capabilities are the base and whose SC integrative capabilities and external integrative capabilities are reinforcing SC integrative capabilities should adopt RSC activities.Originality/valueThe paper offers in-depth insight into this issue and has shed light on the ambiguities in the literature regarding the role of SC integration in RSC adoption.