The Effect Of Closed-Loop Supply Chain On Environmental Performance: An Insight From Germany And Malaysia Manufacturing Companies
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Date
2015
Authors
Tan, Shih Sim
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Firm's responsiveness and reactions toward life cycles of products are critical to achieve sustained environmental performance. Life cycles are getting shorter, and efficient handling can save large amounts of cost since many materials can be extracted, reused, and redistributed. Thus, the implementation of Closed-loop supply chain (CLSC) practices can be a powerful way to differentiate a company from its competitors and it can greatly influence the firm to success. With increased green awareness and the requirement to meet the terms with environmental policy, CLSC is becoming increasingly important for manufacturers. Thus, this study examined the effect of CLSC practices on environmental performance between Germany and Malaysia manufacturing companies. An online survey is administered to manufacturing companies and a comparison was draw between these two countries. Approximately 275 data from Malaysia and 129 data from Germany were analyzed using the structural equation modelling with smartPLS. Analytical results indicated that different industries sectors of different countries are facing different pressures of different business strategies as well as different regulations and laws. The Germany and Malaysia findings revealed that manufacturing companies’ environmental performance vary from company to company and country to country. The finding suggested that German manufacturers were seen to be more effectively and efficiently towards the implementation of CLSC practices to achieve environmental performance as compared to Malaysia. Moreover, the finding also revealed that Malaysia manufacturing companies' reverse logistics achieved a better environmental performance than forward logistics. In a nutshell, although Malaysia manufacturers were seen are still in their infancy stage to close the loop in their supply chain, but it has already been implemented in some companies.
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Keywords
Life cycles