Reverse Logistics System Influencing Firm Performance in Omni-Channel Supply Chain

Jing Foo Yee, Emy Ezura Bt. Abdul Jalil


Few researchers have attempted to discover omni-channel from the lens of the supply chain, particularly the logistics perspective. Although focusing predominantly on the supply chain, this study aims to develop a structural relationship model to examine the relationship between reverse logistics and firm performance in the omni-channel environment using Smart-PLS. Many studies examine the reverse logistics factors, but these studies did not discuss reverse logistics in the omni-channel business environment. This study would comprehensively understand reverse logistics systems in omni-channel companies. It also demonstrated the effectiveness of reverse logistics in boosting firm performance. A well-designed reverse logistics system can provide competitive advantages to omni-channel companies. This study used a questionnaire survey to investigate the reverse logistics system of different omni-channel companies, including manufacturers, retailers, and logistics service providers. After that, this study applied structural model analysis and moderation relationships analysis to examine reverse logistics factors. In conclusion, some form factors, such as flexibility and collaboration, apparently have a significant influence on omni-channel firm performance. While looking at the task environment factors, customer and supplier are significant factors in predicting omni-channel firm performance. However, firm factors such as top management support, formalization, and information system, and other task environment factors (such as competitors) act as moderator variables towards reverse logistics instead of being directly related to omni-channel firm performance. The results of this study can guide omni-channel companies in designing systematic reverse logistics programs to help their companies to perform better. Relevant entrepreneurs could develop more effective and efficient programs to support the reverse supply chain by including both firm and task environment aspects to boost company performance. This study reports an empirical survey of the reverse logistics system in an omni-channel environment. It provides a comprehensive understanding of the relationships and impacts of reverse logistics systems on omni-channel firm performance.


Keywords: reverse logistics, omni-channel, firm performance, firm factor, task environment factor.

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