Linking forward and reverse supply chain investments: The role of business uncertainty
Canan Kocabasoglu,
Carol Prahinski,
Robert D. Klassen,
Corresponding Author
Canan Kocabasoglu
Decision Sciences, The University of Kansas, School of Business, Summerfield Hall, Lawrence, KS 66045-7585, USA
Corresponding author. Tel.: +1 785 864 7515; fax: +1 785 864 5328.Search for more papers by this authorCorresponding Author
Carol Prahinski
Supply Chain Management, Michigan State University, The Eli Broad Graduate School of Management, Department of Marketing & Supply Chain Management, N362 North Business Complex, East Lansing, MI 48824-1122, USA
Tel.: +1 517 432 5535; fax: +1 517 432 1112.
Corresponding author. Tel.: +1 785 864 7515; fax: +1 785 864 5328.Search for more papers by this authorCorresponding Author
Robert D. Klassen
Operations Management, Richard Ivey School of Business, University of Western Ontario, London, Ontario N6A 3K7, Canada
Tel.: +1 519 661 3336; fax: +1 519 661 3485.
Corresponding author. Tel.: +1 785 864 7515; fax: +1 785 864 5328.Search for more papers by this authorCanan Kocabasoglu,
Carol Prahinski,
Robert D. Klassen,
Corresponding Author
Canan Kocabasoglu
Decision Sciences, The University of Kansas, School of Business, Summerfield Hall, Lawrence, KS 66045-7585, USA
Corresponding author. Tel.: +1 785 864 7515; fax: +1 785 864 5328.Search for more papers by this authorCorresponding Author
Carol Prahinski
Supply Chain Management, Michigan State University, The Eli Broad Graduate School of Management, Department of Marketing & Supply Chain Management, N362 North Business Complex, East Lansing, MI 48824-1122, USA
Tel.: +1 517 432 5535; fax: +1 517 432 1112.
Corresponding author. Tel.: +1 785 864 7515; fax: +1 785 864 5328.Search for more papers by this authorCorresponding Author
Robert D. Klassen
Operations Management, Richard Ivey School of Business, University of Western Ontario, London, Ontario N6A 3K7, Canada
Tel.: +1 519 661 3336; fax: +1 519 661 3485.
Corresponding author. Tel.: +1 785 864 7515; fax: +1 785 864 5328.Search for more papers by this authorAbstract
This paper explores managerial efforts in reverse supply chains (RSC), where the focus is on the capture and exploitation of used products and materials. The RSC can potentially reduce negative environmental impacts of extracting virgin raw materials and waste disposal. If so, investment in the reverse supply chain should not be made in isolation, but instead must be integrated with investments selected to improve the forward supply chain. After defining and operationalizing these constructs, a survey of plant managers was used to empirically assess the linkages between supply chain investments, organizational risk propensity (i.e., willingness to take risk) and business uncertainty. Reverse supply chain investment had two primary dimensions: reconditioning (i.e., high-value recovery) and recycling and waste management (i.e., low- or no-value recovery). Ongoing investment in the forward supply chain was significantly related to investment in recycling and waste management, but not to investment in reconditioning. Moreover, risk propensity was found to mediate the relationship between the external business uncertainty and investment in the forward and reverse supply chain.
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