The Impact of Reverse Logistics on Environmental Sustainability Performance
Environmental sustainability has been obtaining a lot of spotlight since the world has undergone resource pressure, air and waste pollution. Under such circumstances, legislation for environment protection has been issued; from economic perspective of company, make their product recyclable will give them an economical edge in face of competition in the market. Due to these concerns, Logistics is no exception in the business world. Some environment friendly oriented concepts or functions have been added to logistics, such as green logistics and reverse logistics. Reverse logisticsas a new business concept was developed for recapturing values from end of supply chain, which involves activities from recycle, remanufacture to final disposal such as landfill. The purpose of this research is to understand reverse logistics processes in automotive industry, the drivers and barriers implementing the reverse logistics, and then analyze impact of the indicators in reverse logistics such as time, cost, technology and green consciousness on the environmental sustainability. To conduct this research, hypotheses are proposed based on previous studies and findings, then a quantitative approach (PLS-SEM) is applied with web-based survey; primary data is collected from social media LinkedIn and Tencent. The analysis of indicators‟ impact on environmental sustainability was accomplished by formulating hypotheses and path model in SmartPLS, as well as result assessment. This research is also limited by some conditions, which will also be mentioned together with further research work.
Keywords - Automotive Industry, Reverse Logistics, Recycling, Environmental Sustainability, Quantitative Approach, PLS-SEM (Partial Least Square-Structural Equation Modeling)