The Effectiveness of Reverse Logistics: The Empirical Test of Its Factors for Product Returns Reduction

Within the context of reverse logistics (RL), only a few studies have focused on the management characteristics that lead to effectively implementing RL. From the myriad of potential factors of effective RL, the paper focuses on the role of knowledge management, 1st-tier integration and the extent of RL planning, as these factors and their mutual relations have been neglected by empirical research to date. The paper develops a theoretical model to fill this gap and tests it using structural equation modelling on primary data. The findings based on 146 cases support that knowledge management, the extent of RL planning and the level of integration with the 1st-tier supply chain members are the factors related to the effectiveness of RL. The study underpins the importance of long-term RL planning and deeper integration and collaboration with customers and suppliers for effective RL and so to reduce the negative impact of product returns.