Correlation of Reverse Logistics Performance to Solutions Using Structural Equation Modeling
Nowadays, reverse logistics (RL) is one of the key strategies in many industries, especially in the electronics industry due to increasing environmental awareness and sustainable management. The main aim of this research is to investigate the correlation of RL performance to solutions for RL practice of the electronics industry in Thailand. In this research, questionnaires were distributed to 417 companies in the electronics industry of Thailand. A conceptual model was developed and the model examined by using structural equation modeling (SEM). Both exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used in this study. The hypotheses were tested in which RL performance was directly positively associated with the overall solutions for RL practices. RL performance was also indirectly positively associated with management & organization solutions, legal & technology solutions and collaboration and support solutions of the various solutions for RL practices. Empirical data was tested by using SEM and it was found that the proposed model could fit with the empirical data. The proposed results of this study will help to understand more about RL practices and could provide further direction for researchers and practitioners in the electronics industry and other related industries.