Abstract:
Purpose
The study investigated the impact of reverse logistics on firm performance through cost reduction
and environmental pollution in specific food and beverage industry of Karachi, Pakistan.
\ Methodology & Design
This cross-sectional study investigates the effects of reverse logistics on firm performance using
cost reduction and environmental pollution as mediators. Smart-PLS is used in the testing ot
hypotheses. The study used a five-point Likert scale questionnaire administered in person and an
online survey.
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Findings
The results showed that cost reduction and environmental pollution mitigate the impact ofreverse
logistics on firm performance. Furthermore, the findings show that reverse logistics has a positive
impact on cost reduction and environmental pollution.
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Limitations
The research was conducted only on specific food and beverages sector of Karachi. The data
were collected from some respondents per firm (e.g., either top or middle management), limiting
the study’s generalizability. Moreover, a moderator is also missing in the theoretical framework.
Recommendations
Reverse logistics activities need to be implemented in each and every organization in order to
enhance the performance of the firm. Many companies are doing activities of Reverse Logistics
but in bits and pieces. They should focus more on the reverse logistics and should fully
implement the processes ofReverse Logistics.
