Drivers on the reverse logistics: evidence from Malaysian certified companies

Reverse logistics becomes a major issue of concern due to its strategic importance in alleviating environmental problems and generating economic benefits for business organisations. However, little is known about the actual drivers that motivate business firms to adopt reverse logistics initiatives. This study utilised survey data to examine the effects of four drivers: regulations, customer pressures, social responsibility and expected business benefits on reverse logistics in the Malaysian manufacturing sector. The results suggest that reverse logistics is affected only by expected business benefits. This result indicates that business firms give considerable importance to the expected returns from reverse logistics initiatives as a major stimulator for the adoption of these initiatives. The results provide insight into why Malaysian firms adopt reverse logistics activities. They also provide managers and policy-makers with recommendations that can be used in setting up appropriate policies to encourage business firms to adopt reverse logistics initiatives.