IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i6p3265-d768580.html
   My bibliography  Save this article

Developing a Framework for Closed-Loop Supply Chain and Its Impact on Sustainability in the Petrochemicals Industry

Author

Listed:
  • Lubna El-Sheikh

    (Arab Academy for Science, Technology, and Maritime Transport, P.O. Box 1029, Alexandria 21913, Egypt
    Faculty of Logistics, University of Maribor, Mariborska c. 7, SI-3000 Celje, Slovenia)

  • Rebeka Kovačič Lukman

    (Faculty of Logistics, University of Maribor, Mariborska c. 7, SI-3000 Celje, Slovenia
    Faculty of Natural Sciences and Mathematics, University of Maribor, Koroška c. 160, SI-2000 Maribor, Slovenia)

Abstract

Companies rely on formulating, implementing, and monitoring strategies in social, environmental and economic aspects to ensure that they achieve their goals and keep abreast of developments related to sustainability requirements. Therefore, our study develops a system to integrate the closed-loop supply chain approach in the petrochemical sector. The research follows the quantitative-based approach by collecting data through a questionnaire directed to employees in the supply chain departments, including 230 questionnaires that were collected. Correlation and structural equation models (SEM) were used. This technique consists of multiple regression analysis and factor analysis and analyses the structural relationship between the underlying structures and the measured variables. The results indicated a significant relationship between the supply chains that have a loop from the following perspectives: economic motivations, customer awareness, environmental legislation, and sustainability. By increasing financial reasons, customer awareness and environmental legislation, sustainability will increase as they all move in the same direction. Therefore, the overall effect of a closed-loop supply chain is positive and significant.

Suggested Citation

  • Lubna El-Sheikh & Rebeka Kovačič Lukman, 2022. "Developing a Framework for Closed-Loop Supply Chain and Its Impact on Sustainability in the Petrochemicals Industry," Sustainability, MDPI, vol. 14(6), pages 1-15, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3265-:d:768580
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/6/3265/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/6/3265/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M. Joseph Sirgy & Eda Gurel-Atay & Dave Webb & Muris Cicic & Melika Husic-Mehmedovic & Ahmet Ekici & Andreas Herrmann & Ibrahim Hegazy & Dong-Jin Lee & J. Johar, 2013. "Is Materialism All That Bad? Effects on Satisfaction with Material Life, Life Satisfaction, and Economic Motivation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(1), pages 349-366, January.
    2. Nima Kazemi & Nikunja Mohan Modak & Kannan Govindan, 2019. "A review of reverse logistics and closed loop supply chain management studies published in IJPR: a bibliometric and content analysis," International Journal of Production Research, Taylor & Francis Journals, vol. 57(15-16), pages 4937-4960, August.
    3. Zhou, Li & Naim, Mohamed M. & Disney, Stephen M., 2017. "The impact of product returns and remanufacturing uncertainties on the dynamic performance of a multi-echelon closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 487-502.
    4. Anja Buerke & Tammo Straatmann & Nick Lin-Hi & Karsten Müller, 2017. "Consumer awareness and sustainability-focused value orientation as motivating factors of responsible consumer behavior," Review of Managerial Science, Springer, vol. 11(4), pages 959-991, October.
    5. John C. Dernbach & Joel A. Mintz, 2011. "Environmental Laws and Sustainability: An Introduction," Sustainability, MDPI, vol. 3(3), pages 1-10, March.
    6. Rupert J. Baumgartner, 2014. "Managing Corporate Sustainability and CSR: A Conceptual Framework Combining Values, Strategies and Instruments Contributing to Sustainable Development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(5), pages 258-271, September.
    7. Manjot Singh Bhatia & Rajiv Kumar Srivastava, 2019. "Antecedents of implementation success in closed-loop supply chain: an empirical investigation," International Journal of Production Research, Taylor & Francis Journals, vol. 57(23), pages 7344-7360, December.
    8. Poonam Garg & Bhumika Gupta & Sam Dzever & Uthayasankar Sivarajah & Vikas Kumar, 2020. "Examining the relationship between social media analytics practices and business performance in the Indian retail and IT industries : the mediating role of customer engagement," Post-Print hal-02559778, HAL.
    9. Stephen Brammer & Stefan Hoejmose & Kerry Marchant, 2012. "Environmental Management in SMEs in the UK: Practices, Pressures and Perceived Benefits," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 423-434, November.
    10. Gong, Mengfeng & Gao, Yuan & Koh, Lenny & Sutcliffe, Charles & Cullen, John, 2019. "The role of customer awareness in promoting firm sustainability and sustainable supply chain management," International Journal of Production Economics, Elsevier, vol. 217(C), pages 88-96.
    11. Jyoti Dhingra Darbari & Devika Kannan & Vernika Agarwal & P. C. Jha, 2019. "Fuzzy criteria programming approach for optimising the TBL performance of closed loop supply chain network design problem," Annals of Operations Research, Springer, vol. 273(1), pages 693-738, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Duong, Quang Huy & Zhou, Li & Meng, Meng & Nguyen, Truong Van & Ieromonachou, Petros & Nguyen, Duy Tiep, 2022. "Understanding product returns: A systematic literature review using machine learning and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    2. Samuel Howard Quartey & Olamide Oguntoye, 2020. "Promoting corporate sustainability in small and medium‐sized enterprises: Key determinants of intermediary performance in Africa," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1160-1172, March.
    3. Zheng, Guomeng & Ul Haq, Muhammad Zia & Huo, Baofeng & Zhang, Yanming & Yue, Xiaochen, 2024. "Leveraging intellectual capital for building a supply chain circular economy system: A knowledge-based view," International Journal of Production Economics, Elsevier, vol. 272(C).
    4. Liu, Wenjie & Liu, Wei & Shen, Ningning & Xu, Zhitao & Xie, Naiming & Chen, Jian & Zhou, Huiyu, 2022. "Pricing and collection decisions of a closed-loop supply chain with fuzzy demand," International Journal of Production Economics, Elsevier, vol. 245(C).
    5. Fiaz Ahmad Sulehri & Saba Sharif, 2022. "The Impact of Firm Sustainability on Firm Growth: Evidence from USA," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 1-15, August.
    6. Carter, Kealy & Jayachandran, Satish & Murdock, Mitchel R., 2021. "Building A Sustainable Shelf: The Role of Firm Sustainability Reputation," Journal of Retailing, Elsevier, vol. 97(4), pages 507-522.
    7. Salehi-Amiri, Amirhossein & Zahedi, Ali & Akbapour, Navid & Hajiaghaei-Keshteli, Mostafa, 2021. "Designing a sustainable closed-loop supply chain network for walnut industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    8. Fracarolli Nunes, Mauro & Lee Park, Camila & Shin, Hyunju, 2021. "Corporate social and environmental irresponsibilities in supply chains, contamination, and damage of intangible resources: A behavioural approach," International Journal of Production Economics, Elsevier, vol. 241(C).
    9. Simone Pizzi, 2018. "The Relationship between Non-financial Reporting, Environmental Strategies and Financial Performance. Empirical Evidence from Milano Stock Exchange," Administrative Sciences, MDPI, vol. 8(4), pages 1-9, November.
    10. Patricia van Loon & Luk N. Van Wassenhove & Ales Mihelic, 2022. "Designing a circular business strategy: 7 years of evolution at a large washing machine manufacturer," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1030-1041, March.
    11. Broccardo, Laura & Vola, Paola & Zicari, Adrian & Alshibani, Safiya Mukhtar, 2023. "Contingency-based analysis of the drivers and obstacles to a successful sustainable business model: Seeking the uncaptured value," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    12. Mansoureh Beheshti Nejad & Seyed Mahmoud Zanjirchi & Seyed Mojtaba Hosseini Bamakan & Negar Jalilian, 2024. "Blockchain Adoption in Operations Management: A Systematic Literature Review of 14 Years of Research," Annals of Data Science, Springer, vol. 11(4), pages 1361-1389, August.
    13. Prasanta Kumar Dey & Chrisovalantis Malesios & Debashree De & Soumyadeb Chowdhury & Fouad Ben Abdelaziz, 2019. "Could lean practices and process innovation enhance supply chain sustainability of small and medium‐sized enterprises?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 582-598, May.
    14. Angélique Catharina Elford & Claus-Heinrich Daub, 2019. "Solutions for SMEs Challenged by CSR: A Multiple Cases Approach in the Food Industry within the DACH-Region," Sustainability, MDPI, vol. 11(17), pages 1-31, August.
    15. Govindan, Kannan & Salehian, Farhad & Kian, Hadi & Hosseini, Seyed Teimoor & Mina, Hassan, 2023. "A location-inventory-routing problem to design a circular closed-loop supply chain network with carbon tax policy for achieving circular economy: An augmented epsilon-constraint approach," International Journal of Production Economics, Elsevier, vol. 257(C).
    16. Nguyen Thi Thanh Binh, 2024. "An application of artificial neural networks in corporate social responsibility decision making," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 31(1), March.
    17. Kunz, Nathan & Chesney, Thomas & Trautrims, Alexander & Gold, Stefan, 2023. "Adoption and transferability of joint interventions to fight modern slavery in food supply chains," International Journal of Production Economics, Elsevier, vol. 258(C).
    18. Philip R. Walsh & Rachel Dodds & Julianna Priskin & Jonathon Day & Oxana Belozerova, 2021. "The Corporate Responsibility Paradox: A Multi-National Investigation of Business Traveller Attitudes and Their Sustainable Travel Behaviour," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    19. Yanting Huang & Zongjun Wang, 2017. "Dual-Recycling Channel Decision in a Closed-Loop Supply Chain with Cost Disruptions," Sustainability, MDPI, vol. 9(11), pages 1-28, November.
    20. Andrea Chiarini, 2017. "Environmental Policies for Evaluating Suppliers' Performance Based on GRI Indicators," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 98-111, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3265-:d:768580. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.