THE IMPACT OF REVERSE LOGISTICS ON COST REDUCTION & ENVIRONMENTAL POLLUTION WHICH FINALLY LEADS TO PERFORMANCE OF THE FIRM

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. !• j i 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. \ 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.