The Impact of Strategic Orientation of Eco Reputation on Cost Saving through Reverse Logistics Drivers

Abstract

One of the major concerns that companies have is the need to support a sustainable environment. Customers’ awareness of environmentally friendly initiatives has increased over the years, driving firms to become more responsible for the environment. Reverse logistics is one of the key green strategies that emphasises supporting a sustainable environment in the field of the supply chain. Therefore, the study attempts to find out whether the strategic orientation of eco reputation has an impact on cost saving of the organisation through reverse logistics drivers. The descriptive cross-sectional survey design has been used to collect data and a self-administered questionnaire was distributed among manufacturing companies in the BOI zones in Sri Lanka. Responses were gained from a sample of 250 subjects using a structured questionnaire that was given to supply chain and operations managers in the organisations. SPSS 20.0 and AMOS version 20.0 was used to analyse the data in the study. The results depict that the strategic orientation of eco reputation has an impact on cost saving of the organisation and the mediation factor of reverse logistics drivers has a significant impact on the strategic orientation of eco reputation on cost saving of the organisation.  It is recommended that the top management should increase awareness on reverse logistics drivers in order to enhance the eco reputation of the organisation and to save its cost. As a whole, this study will be useful to gain insight on the extent to which strategic orientation of eco reputation affects organisation cost saving through reverse logistics drivers in manufacturing companies in Sri Lanka.

Keywords: Green Strategies, Reverse Logistics Drivers, Strategic Orientation of Eco Reputation, Sustainable Environment