Investigating the role of reverse supply chain performance and the government policy on the performance of the manufacturing firms

Abstract

The purpose of this study is to analyze the relationships between supply chain leadership and reverse supply chain performance, government policy and reverse supply chain performance, and finally, government policy and supply chain leadership. The research methodology is analytical, namely survey research that aims to collect, compile, analyze, interpret, and finally draw conclusions. The approach used is quantitative, which includes the development of an empirical model and its measurement based on theoretical studies. Research respondents are managers who are responsible to manage the reverse supply chain operations such as supply chain, warehouse, transportation/distribution, production, planning and control of production and inventory planning and control, procurement, and marketing in manufacturing companies. The research data was obtained by distributing online questionnaires to 560 supply chain managers of manufacturing companies who were determined using the simple random sampling method and the questionnaires were designed using a Likert scale. Data analysis used structural equation modeling (SEM) with SmartPLS 3.0 software tools. The stages of data analysis are validity test, reliability test and hypothesis testing. The results indicate that supply chain leadership had a significant effect on reverse supply chain performance, government policy had a significant effect on reverse supply chain performance and, finally, government policy had a significant effect on supply chain leadership.