Modeling Reverse Logistics Barriers in Manufacturing Industry of Pakistan: An ISM and MICMAC Approach

Abstract

Due to industrialization, increasing solid waste is affecting environmental integrity globally. Reverse logistics (RL) has become a significant tool to deal with environmental degradation issues, and it is being implemented in developed countries. However, RL is at the infancy stage in developing countries especially in Pakistan due to different obstacles. This study aims to identify and analyzes the interrelationship between barriers affecting RL implementation in Pakistani manufacturing industry using an integrated methodology of Interpretive Structural Modeling (ISM) and MICMAC approach. Results of ISM and MICMAC identified organizational, financial, and technological barriers as dependent barriers. However, lack of government policy incentives, lack of responsiveness about RL, lack of enforceable laws on product return, changing in regulations due to political changes, lack of environmental law awareness and lack of corporate social responsibility emerged out as top-ranked barriers driving other barriers that need to be addressed. An inter-relationship based structural model will be helpful for supply chain and RL professional in understanding major obstacles to RL implementation and develop a strategy to promote RL in the manufacturing industry.