Leveraging big data analytics capabilities in making reverse logistics decisions and improving remanufacturing performance

Abstract

PurposeThe study investigated the effect of big data analytics capabilities (BDACs) on reverse logistics (strategic and tactical) decisions and finally on remanufacturing performance.Design/methodology/approachThe primary data were collected using a structured questionnaire and an online survey sent to South African manufacturing companies. The data were analysed using partial least squares based structural equation modelling (PLS–SEM) based WarpPLS 6.0 software.FindingsThe results indicate that data generation capabilities (DGCs) have a strong association with strategic reverse logistics decisions (SRLDs). Data integration and management capabilities (DIMCs) show a positive relationship with tactical reverse logistics decisions (TRLDs). Advanced analytics capabilities (AACs), data visualisation capabilities (DVCs) and data-driven culture (DDC) show a positive association with both SRLDs and TRLDs. SRLDs and TRLDs were found to have a positive link with remanufacturing performance.Practical implicationsThe theoretical guided results can help managers to understand the value of big data analytics (BDA) in making better quality judgement of reverse logistics and enhance remanufacturing processes for achieving sustainability.Originality/valueThis research explored the relationship between BDA, reverse logistics decisions and remanufacturing performance. The study was practice oriented, and according to the authors’ knowledge, it is the first study to be conducted in the South African context.