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1、Critical barriers in implementing reverse logistics in the Chinese manufacturing sectorsMuhammad D. Abdulrahman a, Angappa Gunasekaran b,1, Nachiappan Subramanian a,na Nottingham University Business School China, The Uni
2、versity of Nottingham Ningbo China, 199 Taikang East Road, Ningbo, 315 100, China b Department of Decision and Information Sciences, Charlton College of Business, University of Massachusetts Dartmouth, 285 Old Westport R
3、oad, NorthDartmouth, MA 02747-2300, USAa r t i c l e i n f oArticle history:Received 2 April 2012Accepted 5 August 2012 Available online 15 August 2012Keywords:BarriersChinaManufacturingReverse logisticsa b s t r a c tRe
4、verse logistics (RL) is gaining momentum worldwide due to global awareness and as a consequenceof resource depletion and environmental degradation. Firms encounter RL implementation challengesfrom different stakeholders,
5、 both internally and externally. On the one hand, various governmentalagencies are coming out with different environmental regulations while on the other hand academicsand researchers are contributing solutions and sugge
6、stions in different country contexts. In a real sensehowever, the benefits of RL implementation is not yet fully realized in the emerging economies. Thispaper proposes a theoretical RL implementation model and empiricall
7、y identifies significant RL barrierswith respect to management, financial, policy and infrastructure in the Chinese manufacturingindustries such as automotive, electrical and electronic, plastics, steel/construction, tex
8、tiles and paperand paper based products. Key barriers from our study, with respect to these four categories, are:within management category a lack of reverse logistics experts and low commitment, within financialcategory
9、 a lack of initial capital and funds for return monitoring systems, within policy category a lackof enforceable laws and government supportive economic policies and, finally, within infrastructurecategory a the lack of s
10、ystems for return monitoring. Contingency effect of ownership was carried outto understand the similarities and differences in RL barriers among the multinational firms anddomestic firms investigated.Jindal and Sangwan,
11、2011; Gunasekaran and Ngai, 2012). In the real sense it has been highlighted that best reverse logistics operations would lead to higher sales revenue and reduced operational costs (PricewaterhouseCoopers’ report, 2008;
12、Frota Neto et al., 2008). Furthermore, researchers have also reported several benefits that could be achieved with RL, such as efficient resource utilizationand environmental protection (Gunasekaran and Spalanzani, 2011;
13、 Ferna ´ndez et al., 2009; Tsai et al., 2008). Interestingly most of the prior research on the drivers and barriers of RL implementation are concentrated on developed countries, with relatively little attention bein
14、g devoted to devel- oping countries, such as China (see Rogers and Tibben-Lembke, 1999, 2001; Ferguson and Browne, 2001; Lau and Wang, 2009; Zhu and Geng, in press; Jindal and Sangwan, 2011; Miao et al., 2011). Of the fe
15、w studies on developing countries, Lau and Wang (2009) investigated RL in Chinese electronic industry using case study on only four companies. The study by Jindal and Sangwan (2011) on RL barriers in India, on the other
16、hand, was based on general organizational, market and government related barriers that are not related to any particular industry sector in India. Both studies acknowledged limitations in the scope of their studies and m
17、ethodologies employed and encourage appropriate future large- scale empirical study within and across different industry sectors; the exact objective of the present study. That few RL studies focused on developing countr
18、ies is hardly surprising because whereas RL is a mandatory part of supply chain in developed countries, it is still in its infancy state in developing countries (Zhang et al., 2011; Sarkis et al., 2011).Contents lists av
19、ailable at ScienceDirectjournal homepage: www.elsevier.com/locate/ijpeInt. J. Production Economics0925-5273/$ - see front matter & 2012 Elsevier B.V. All rights reserved.http://dx.doi.org/10.1016/j.ijpe.2012.08.003n
20、Corresponding author. Tel.: þ86 574 8818 0197.E-mail addresses: muhammad.abdulrahman@nottingham.edu.cn(M.D. Abdulrahman), agunasekaran@umassd.edu (A. Gunasekaran),nachiappan.subramanian@nottingham.edu.cn (N. Subrama
21、nian). 1 Tel.: þ86 574 8818 0019.Int. J. Production Economics 147 (2014) 460–471methodology adapted and to identify the major research gaps in them. The major observations of this review are as follows: Most of the
22、research was focused towards e-waste and their intention was to study the global flow, predict the outcome, analyze cause and effect, review WEEE management and, assess the impact of legislation of WEEE. Few studies have
23、 been carried out to under- stand the characteristics of RL, battery recycling, the adaptability of existing theories to the Chinese context, the problems in remanufacturing, evaluation of legislative measures and eco in
24、dustrial development in China. Quite interestingly, we found few studies in the process, automotive and publishing industries.We found only two empirical studies on the electrical and electronic industry and manufacturin
25、g which discussed logistics’ social responsibility, the rest were based on case study. We identified gaps from these studies with respect our four categories of classifications such as management, financial, poli- cies a
26、nd infrastructure. We found future study prospects with respect to management aspects such as: difficulty in minimizing waste, manufacturers’ responsibility, involvement of members, poor level of technical knowledge and
27、lack of communication. In terms of policies and regulations we found few critical aspects such as responsibility of government and original equipment manufacturer (OEM) in promoting standards and external majorTable 1Sum
28、mary of RL studies in Chinese context.Source Type of RL study Industry Method used Broad conclusionTong andWang(2004)Explored the global flows of e-waste and concentration ofrelated recycling in coastal ChinaE waste Case
29、 study Recycling sector (authorized and illegal) has played asignificant role in rural industrialization and localenvironment without considering environmentalprotection.Liu(2006)Predicted the amount of electronic equipm
30、ent from urbanhousehold in BeijingE waste Interview To understand statistics of e waste due to urbanizationand how it can be handled in future.Zhouet al.(2007)Analyzed current battery recycling system in China Battery re
31、cycling Soft systemandBenchmarkinglack of governmental policies, technical guidance andadministrative resources, but more importantly lackingaspect is cost-effective recycling technologies, fundingresources and public pa
32、rticipation.Yanget al.(2008)Described and investigated national level WEEE flow E waste Case study Need to augment capacity and suitable WEEE treatmentto protect environment.Lau andWang(2009)Investigated whether current
33、reverse logistics theoriesand models can be applied in ChinaElectronic industry Case study Major barriers to reverse logistics implementation areexternal and they are lack of enforceable law,regulations or directives to
34、motivate manufacturers’,economic support and preferential tax policies, lowpublic awareness of environmental protection andunderdevelopment of recycling technologies.Wu andCheng(2006)Compared the characteristics of rever
35、se logistics in thepublishing industry among China, Hong Kong and TaiwanPublishing industry Case study RL in publication industry is at an early stage and foundRL cost as a significant factor.ChungandZhang(2011)Evaluated
36、 the legislative measures on electrical andelectronic waste in the people’s republic of Chinaelectrical andelectronic industryCriticalevaluationPresence of large number of loop holes in Chinese WEEEregulations and they a
37、re poor law making skills, poorlevel of technical knowledge, lack of all-inclusiveconsideration and consultation and lack of inter-ministerial communication, coordination and support.Ying(2009)Studied cause and effects o
38、f house hold appliancesreverse logistics in ChinaElectrical andElectronic appliances(House holdappliances)TheoreticalandcomparativeChina has not yet realized the importance of house holdappliances reverse logistics, many
39、 manufacturers havenot engaged in household appliances RL with noqualifications.Fanget al.(2007)Examined the state of eco-industrial development inChina, industrial sustainability constraints in China andsuggested future
40、 prospectus for sustainable developmentProcess industry(Sugar makingindustry andchemical industry)Case study Eco-industrial development in China is in its infancystage and future prospect lies on closed loop involvingcha
41、ins and industrial symbiotic web.Ongondoet al.(2011)Reviewed the management of electrical and electronicwastes with a detailed review on Chinese contextElectrical andelectronic wasteReview Literature review provides deta
42、iled statistics ofelectrical and electronic waste management in China.Role of import and export of end of life waste electricalequipment, recycling procedures and regulations.Stated the difficultly in managing the waste
43、electricaland electronic products compared to developedcountries.Veenstraet al.(2009)Investigated through Markov chain model how far theexisting recycling system matches with newly proposedcircular economy promotion law
44、of people’s republic ofChinaE-waste Empirical Active involvement of dealers and retailers to fullyrealize the extended producer responsibility inrecycling.Wanget al.(2009)Analyzed the significant impact of WEEE legislati
45、on onmanufacturing, recycling, treatment and exportation andimportationHousehold industry Interview Absence of detailed regulations and technical standardshinders successful implementation of law andregulation.Zhanget al
46、.(2011)Presented some problems before during and aftermanufacturing in automotive remanufacturingAutomotive Conceptual To understand the responsibility of government andOEM to recycle their products, establishment ofstan
47、dards and techniques to strengthen quality andreliability of remanufactured products, involvement ofresearch institutes and universities.Miaoet al.(2011)Proposed five dimensional structure of logistics socialresponsibili
48、ty. It includes clan culture, business ethics,pressures from customers, suppliers and competitors andlaw and regulationsManufacturing Empirical Identified clan culture and business ethics has a majoreffect on logistics s
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