Relationship Between Reverse Logistics Practices and Organizational Performance (The Case of East Africa Bottling Share Company)
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Date
2016-06
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Addis Ababa University
Abstract
Reverse logistics is an important process that is often misunderstood. Many
organizations do not understand what processes and procedures to follow and how
to manage reverse logistics efficiently. Though studies have shown the positive
impacts of adoption of various reverse logistics practices, the researcher found no
research works that specifically shown how adoption of reverse logistics practices
could impact on organizational performance in the case of firms in Ethiopian. The
objectives of this study were to determine the extent to which EABSC has adopted
reverse logistics practices and investigate the relationship between reverse
logistics practices and organizational performance. A descriptive cross-sectional
survey study was used to provide empirical data to help address the existing
research gap. The study sample consisted of 111 employees selected through
stratified random sampling. The respondents answered questionnaire items
adopted from previous researchers. The inferential relationship was imputed using
Pearson correlation analysis. The findings showed that EABSC has adopted
reverse logistic practices to appreciable levels. Specifically, it was seen that reuse
and recycle reverse logistics practice were found strongly correlated with
organizational performance and both reuse & recycle have strong positive
correlation with financial and market performance. It is therefore recommended
that management of EABSC should look at reverse logistics practice as a strategic
method that can be used to achieve organizational performance. Similarly, EABSC
should consider outsourcing their reverse logistics function, if they lack the
necessary expertise or knowledge.
Key Words: Reverse Logistics, Organizational Performance
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Keywords
Reverse logistics, Organizational Performance