Analyzing disposition decisions for sustainable reverse logistics: Triple Bottom Line approach

In last few decades, circular economy concepts have gained a lot of consideration because of its focus towards sustainability. Reverse logistics play an important role in the adoption and implementation of circular economy concepts in supply chains. It is defined as sequence of activities required to collect the used product from the customers for their disposition to either reuse or repair or re-manufacture or recycle or dispose of it. Disposition is one of the crucial decisions which may greatly affect the reverse logistics performance from sustainability perspective. It also plays an important role in improving the operational efficiency of the reverse logistics. The objective of this study is to explore the reverse logistics in context of Indian electronics industry and examine the effect of disposition decisions on Triple Bottom Line (TBL) i.e. economic, environmental, and social performance of reverse logistics. Hypotheses related to disposition decisions and TBL performance was developed. A survey instrument was prepared and was sent to seven hundred organizations from the Indian electronics sector. Over all 208 responses were found suitable for the research. All the necessary statistical analysis was carried out to ensure the reliability and validity of the questionnaire. Partial least square path modelling technique of structural equation modeling has been used for testing the research hypothesis. Measurement model had shown sufficient data fit for the modelling. Partial least square path modelling results reveal that effectiveness of disposition decisions is positively associated with TBL performance. The article contributes to the few studies available on improving the reverse logistics performance. Findings will be useful for managers in managing reverse logistics in effective manner.